Kerjaya Prospek 3Q net profit down on marginal revenue rise in property project absence

KUALA LUMPUR (Nov 25): Kerjaya Prospek Group Bhd's third quarter (3Q) net profit decreased 20.41% to RM24.18 million from RM30.38 million a year earlier as revenue increased marginally to RM222.64 million from RM222.21 million on minimum income from property development in the absence of real estate projects as the group contended with the impact of Covid-19 pandemic-driven movement restrictions.

Besides property development, Kerjaya Prospek is also involved in the construction business and furniture manufacturing operations, according to the company's financial report for the third quarter ended Sept 30, 2021 (3QFY21).

"Overall, the increase in revenue for current quarter under review was mainly due to progress (in) construction work on site.

"On property development segment, the Vista Residence project at Genting Permai was completed in year 2019 and there are no projects under development for financial quarter under review. Therefore, the property development segment has minimum contribution to the group's results.

"For the financial quarter under review, the main source of income for investment segment was interest income," Kerjaya Prospek said.

For the cumulative nine months ended Sept 30, 2021 (9MFY21), Kerjaya Prospek said net profit increased to RM66.57 million from RM62.77 million a year earlier while revenue grew to RM681.21 million from RM562.15 million.

"(On a quarterly basis,) for the current quarter, the group recorded a revenue and profit before tax of RM222.64 million and RM30.61 million respectively compared with RM189.89 million and RM23.26 million respectively in its immediate preceding quarter," the company said.

Looking ahead, Kerjaya Prospek said that for 4QFY21, the group will continue to monitor and implement appropriate business strategies in a timely manner to address the risk that the pandemic may have on the group's operations and financial performance.

The group said it is supported by an outstanding construction order book of RM3.6 billion as at Sept 30, 2021.

"Moving forward, the group aims to focus on the construction segment to be the main revenue driver of the group.

"Notwithstanding the group's objective to expand its core business in construction, it will still maintain the manufacturing segment to complement its core business.

"On the property development segment, the group is planning to launch two new development projects in the first half of 2022," Kerjaya Prospek said.

At 2.40pm on Thursday, Kerjaya Prospek's share price fell two sen or 1.64% to RM1.20 for a market capitalisation of about RM1.49 billion.

Kerjaya Prospek has 1.24 billion issued shares, according to its latest quarterly financial report.

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