Kerjaya Prospek eyes RM1.2bil contracts in FY22

Kerjaya Prospek chief executive officer and executive director Tee Eng Tiong.

KUALA LUMPUR: Kerjaya Prospek Group Bhd targets to secure RM1.2 billion worth of new contracts in the financial year ending Dec 31, 2022 (FY2022).

Chief executive officer Tee Eng Tiong said the company is optimistic about the target as its wholly-owned subsidiary, Kerjaya Prospek (M) Sdn Bhd, had already secured the largest construction contract worth RM710.1 million recently.

"We have already achieved 59 per cent of our target and for the upcoming contracts, we will choose the projects with better opportunity and margins,” he told a virtual press briefing on the company’s results for the fourth quarter of FY2021 (Q4 FY2021) today.

Kerjaya Prospek (M) has bagged a contract from Nikmat Merpati Sdn Bhd for the development of Astrum Ampang, comprising the construction of the main building and external works of a proposed residential development project with a gross development value (GDV) of RM1.6 billion.

It will commence in June 2022 and complete in November 2026.

Meanwhile, Kerjaya Prospek’s net profit rose to RM96.96 million for FY2021 from RM90.75 million in the preceding year while revenue improved to RM964.92 million from RM811 million previously.

Tee said the group's current tender book stands at between RM1.5 billion and RM2 billion.

He added that, as economic activities are picking up, the group will launch two new property development projects, namely Dutamas Development (Yakin Land) and Monterez Development, with GDV of RM380 million and RM250 million respectively, by the first half of 2022.

On the labour shortage issue, he said the company expected it to be resolved before June 2022 after the government eases the border restrictions.

"We have about 10 per cent to 20 per cent shortage due to Movement Control Order and we foresee it will settle down before June 2022,” he said.

On the Russia-Ukraine crisis, he said it would have a slight impact on material prices but it may not impact the company’s profit and revenue. - Bernama