Kerjaya Prospek 2Q net profit up 7%, pays 1.5 sen dividend

KUALA LUMPUR (Aug 30): Kerjaya Prospek Group Bhd's net profit rose 6.9% to RM35.17 million in the second quarter ended June 30, 2018 (2QFY18), from RM32.9 million a year ago, on higher revenue.

Earnings per share, however, came in lower at 2.83 sen for 2QFY18 compared with 3.5 sen for 2QFY17, to reflect the larger base of shares from a bonus issue which was completed on Feb 27.

Quarterly revenue increased 15.9% to RM278.4 million from RM240.2 million in 2QFY17, mainly driven by the construction segment.

"There is improvement on the manufacturing segment's performance. The property development segment is also expected to contribute positively to the group's earnings moving forward with the encouraging take-up rate in the group's property development project in Genting Permai," Kerjaya Prospek said in a filing with Bursa Malaysia today.

On the group's maiden project, Vista Residences in Gohtong Jaya has also recorded an encouraging take-up rate with its current unbilled sales of some RM62 million.

Kerjaya Prospek also declared an interim dividend of 1.5 sen per share for the financial year ending Dec 31, 2018 (FY18), payable on Oct 30.

The improved quarterly performance lifted Kerjaya Prospek's net profit for the cumulative six months (1HFY18) by 9.3% to RM67.51 million, from RM61.75 million a year ago, while revenue grew 12.7% to RM533.54 million, from RM473.42 million in 1HFY17.

On current year prospects, Kerjaya Prospek said it is cautiously optimistic about its overall business as the market is expected to be challenging but sustainable.

It aims to focus on the construction segment as it is the main revenue driver, and will maintain the manufacturing segment as part of its integrated business objective and strategy and complete the existing property development project.

As at end-June, the group has an outstanding order book of RM2.88 billion.

Shares in Kerjaya Prospek ended the morning session unchanged at RM1.43 today, with 56,700 shares done, bringing a market capitalisation of RM1.78 billion. — theedgemarkets.com

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