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Construction segment lifts Kerjaya Prospek's 4Q net profit by 9%

KUALA LUMPUR (Feb 26): Property developer and contractor Kerjaya Prospek Group Bhd's net profit rose 9.4% to RM28.31 million in the fourth quarter ended Dec 31, 2017 (4QFY17) from RM25.87 million a year ago, driven by strong contributions from various ongoing projects in its construction division.

This resulted in a higher earnings per share of 5.56 sen in 4QFY17, compared with 5.09 sen in 4QFY16. Quarterly revenue also grew 10.4% to RM252.66 million, from RM228.82 million in 4QFY16.

The improved quarterly results lifted its full year FY17 net profit to RM124.47 million, up 24.9% from RM99.62 million the previous year, while revenue increased 19.7% to RM956.02 million in FY17, from RM798.69 million in FY16.

In a statement today, Kerjaya said the construction division recorded a net profit of RM117.2 million on revenue of RM874.6 million in FY17, as construction schedules for ongoing projects intensified. The property development and manufacturing divisions contributed the balance of the top-line and segmental net profit.

"The group’s balance sheet remained robust with a net cash position of RM185.4 million and a current ratio of 2.1 times. The group’s current outstanding orderbook stands at RM3 billion, as total contract wins in FY17 totalled RM1.4 billion," the filing added.

Moving forward, Kerjaya said the market would be challenging but sustainable. "Barring any unforeseen circumstances, the group is cautiously optimistic on its overall businesses and will continue to sharpen its competitive edge to achieve sustainable growth in the market."

The group sees the construction segment continuing as its main revenue driver.

"The group continues to pursue both high rise and landed development projects from domestic markets. In addition, the group's maiden project, Vista Residences, has also recorded an encouraging take-up rate with its current unbilled sales of approximately RM71 million," Kerjaya said.

At 4.41pm, Kerjaya shares were down 2 sen or 1.14% at RM1.74, with 3.21 shares done, bringing a market capitalisation of RM2.15 billion. — theedgemarkets.com

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