Kerjaya Prospek targets to secure RM1.2b orderbook in FY19

KUALA LUMPUR (May 30): Construction firm Kerjaya Prospek Group Bhd is targeting to secure an orderbook of RM1.2 billion worth of jobs for the financial year ending Dec 31, 2019 (FY19).

Speaking to reporters during the group's first quarter results briefing here today, its executive chairman Datuk Tee Eng Ho (pictured) explained that the outlook of the construction industry should be better than last year.

Noting that he is "quite confident that this year will be a better year" in terms of prospects, Tee said he is expecting a double-digit growth in sales on the back of more job wins.

In comparison, its orderbook for the full year of FY18 stood at RM989.8 million. This would mean that the construction player is aiming for some 20% increase in jobs secured this year.

So far, the group's contract wins as of end-April amounted to RM873 million, said Tee.

As at March 31, 2019, its outstanding orderbook stood at RM3.1 billion, which would keep the group busy for the next three years.

Currently, Tee said Kerjaya Prospek is tendering for some RM1.5 billion jobs.

Meanwhile, the group is eyeing some joint venture (JV) projects in mainly the Klang Valley area and Penang Island, said Tee, noting that it is seeking high rise developments.

"A JV is a good option for the group in order not to exhaust on our cash flow," he said, adding that the firm is building a war chest, given that the group is also looking for merger and acquisition (M&A) opportunities.

Additionally, he said Kerjaya Prospek is aiming to launch two high-rise projects in the second half of next year, in Shah Alam and Dutamas, with an estimated gross development value of RM250 million and RM400 million respectively.

Tee also noted that the company has allocated some RM30 million capital expenditure this year for buying equipment, such as tower cranes and concrete pumps, among others. This will be funded internally.

As at March 31, 2019, cash and bank balances stood at RM166.84 million.

In a filing to Bursa Malaysia today, Kerjaya Prospek saw its net profit grew 8.58% to RM35.12 million or 2.84 sen per share in the first quarter ended March 31, 2019 (1QFY19), from RM32.35 million or 2.6 sen per share last year, on the back of higher revenue.

Its quarterly revenue was up 3.54% to RM264.18 million, from RM255.14 million last year.

At 3.31pm, shares of Kerjaya Prospek fell 3 sen or 2.42% to RM1.21, giving it a market capitalisation of RM1.5 billion. Over the past year, the stock has fallen some 21% from RM1.57.

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