KUALA LUMPUR: Construction-based Kerjaya Prospek Group Bhd
is looking forward to achieving RM1bil in revenue in 2022, according to chairman Datuk Tee Eng Ho.
“However, to hit RM1.2bil is tough because of the workers (shortage) issue. If we don’t have worker issues, RM1.2bil is a small problem.
“Next year, we should be able to (achieve it), because the worker issue should be solved,” said Eng Ho at a media briefing yesterday.
On its net profit for 2022, Eng Ho said: “RM100mil should be no problem. We may be affected by Cukai Makmur (a one-off prosperity tax).”
Eng Ho also said the group was looking forward to declaring more dividends because the “cashflow that will come in is very strong.”
Kerjaya Prospek is also maintaining its target order book replenishment of RM1.5bil for 2022, and Eng Ho said “another one or two more projects should come in by year-end.”
As for the group’s framework agreement with Samsung C&T (KL) Sdn Bhd, Eng Ho said: “It will target more on high-rise projects or electrical and electronic (E&E) product factories in Malaysia.”
“Our clients will be multinational corporations. I foresee this (E&E) will be a big market for the next two to three years.
“Samsung is very strong in E&E – when it comes in, certain projects can easily be worth RM1bil. About 70% of that will be in mechanical and engineering, we (Kerjaya Prospek) only work on about 30%,” added Eng Ho.
In June, the group signed a framework agreement with Samsung C&T to embark on a long-term alliance that is expected to accelerate growth for both companies in the construction industry in Malaysia.
Meanwhile, in a statement, Kerjaya Prospek CEO and executive director Tee Eng Tiong said that going forward, the group remains cautiously optimistic as prices of raw materials have started to taper off from the highs seen in the first half of 2022.
“Also, we have had the application for our first batch of 500 foreign workers approved recently, which provides us with the resources to take on more jobs,” said Eng Tiong.
Kerjaya Prospek had soft-launched its second property project, The Vue @ Monterez, with a gross development value (GDV) of RM250mil in June 2022.
The Vue @ Monterez, located in Shah Alam, consists of three blocks housing 436 residential units.
The group targets to launch its next project, the Yakin Land development, by end-2022. With a GDV of RM380mil, it comprises two 38-storey blocks with 454 residential units.
In a filing with Bursa Malaysia, the group stated that it has an outstanding order book of RM4.3bil in construction contracts as at June 30, 2022.
Moving forward, the group will focus on its construction segment to be the main revenue driver, and intends to maintain its manufacturing segment to complement its core business.
For its second quarter ended June 30, 2022 (2Q22), net profit jumped 78.3% to RM28.53mil while revenue rose 45.8% to RM276.92mil.
Diluted earnings per share for 2Q22 was 2.03 sen versus 1.14 sen a year earlier.
The group said the higher progress billings in 2Q22 resulted in improved revenue, as there were no disruptions at work sites.
For its first half (1H22), net profit jumped 35.4% to RM57.4mil while revenue rose 25.9% to RM577.5mil.
Diluted earnings per share for 1H22 was 4.08 sen versus 3.01 sen a year earlier.
The group also declared a second interim dividend of one sen per share, with the ex-date on Sept 8 and payment on Oct 7, 2022.
The improved 1H22 results were also mainly due to the higher progress billings amid increased site activities.
The construction division remained its largest contributor, which accounted for 99.4% of 1H22 revenue.
The group said its balance sheet stayed healthy with a net cash position of RM214.6mil and a current ratio of 6.1 times as at June 30, 2022.
“The strong cash position provides us with a solid buffer to withstand potential economic downturns,” it said.
Eng Tiong noted that year-to-date, the group has secured RM1.3bil worth of contracts, which bolstered its outstanding order book to RM4.3bil as at June 30.
“Our robust order book will provide earnings visibility over the next three years,” he said.
