Fifth job win for Kerjaya Prospek this year

PETALING JAYA: Kerjaya Prospek Group Bhd has accepted a letter of award to undertake the substructure development works of a proposed serviced apartment project in Andaman Island, Penang, for a contract sum of RM33.2mil.

The job was secured via its wholly-owned subsidiary Kerjaya Prospek (M) Sdn Bhd.

It marks the fifth contract win for the group this year, bringing its year-to-date contract wins to RM411mil.

In a statement, the construction group said the project entails the execution and completion of piling works, construction of a basement, associated site works and earthworks of a 49-storey serviced apartment.

“The construction works are slated to be completed within 12 months from the commencement date of June 17, 2024.

“The contract, which was undertaken on an arm’s length basis based on commercial terms which are not more favourable than those available to the public, was awarded by Persada Mentari Sdn Bhd, an indirect subsidiary company of Eastern & Oriental Bhd,” it said.

Commenting on the new contract win, Kerjaya chief executive officer and executive director Tee Eng Tiong said the group’s immediate objective is to fast-track the progress of its outstanding jobs which are at its tail-end to allocate resources to the new projects efficiently.

“As it stands, we have achieved approximately 27% of our targeted order book replenishment for the year, bringing our order book value up to RM4.2bil, which will continue to sustain robust earnings visibility within the next three years,” he said.

In the fourth quarter ended Dec 31, 2023, Kerjaya posted a net profit of RM35.74mil, up from RM28.6mil in the year-ago quarter. Its earnings per share improved to 2.83 sen from 2.27 sen in the comparative quarter.

Revenue during the quarter rose to RM489.04mil from RM285.26mil in the previous corresponding quarter.

Over the entire financial year, Kerjaya recorded a net profit of RM132.29mil against RM114.8mil in financial year 2022, while revenue rose to RM1.46bil from RM1.12bil in the previous year.

The group has declared a fourth interim dividend of two sen per share, payable on April 5, 2024.

In a recent report, TA Research said it expects Kerjaya’s job replenishment target of RM1.6bil to RM2bil to be achievable, supported by the group’s proven track record and increased job flows from Andaman Island.

“Assuming a construction cost-to-gross development value ratio of 55%, we estimate potential contracts worth RM715mil from Andaman Island alone this year,” it said.

Meanwhile, Mercury Securities noted that Kerjaya secured several significant contracts in January, namely main building works valued at RM170.9mil for a high-rise residential development in Andaman Island from Persada Mentari and superstructure works worth RM69.2mil on Gurney Marine Bridge awarded by Tanjung Pinang Development Sdn Bhd.

Other major jobs won are piling and sub-structure works valued at RM25.9mil for a 50-storey serviced apartment on Andaman Island from Persada Mentari; as well as execution and completion of a residential development valued at RM111.8mil in Setapak, Kuala Lumpur, from Kerjaya Property Sdn Bhd.