Kerjaya Prospek 2Q net profit rises 1.75% on better showing by construction segment

KUALA LUMPUR (Aug 28): Kerjaya Prospek Bhd's net profit for the second quarter ended June 30, 2019 rose 1.75% to RM35.78 million, from RM35.17 million a year earlier, on the back of a better performance by its construction segment.

Earnings per share for the quarter rose to 2.9 sen, from 2.83 sen in the same quarter last year, the group said in a filing.

Despite the marginal increase in net profit, quarterly revenue fell 6.84% to RM259.36 million, from RM278.40 million last year.

The group said its manufacturing segment, which complements its construction segment, saw a slight decline to the completion of its current project.

With the group's property project in Genting Permai being completed this year, its property development segment also contributed lower earnings.

Kerjaya Prospek's cumulative net profit for the first half of the year grew 5.02% to RM70.90 million, from RM67.51 million for the previous corresponding period. Half-year revenue fell 2.06% to RM523.54 million, from RM533.54 million.

On its prospects, the group said its outstanding order book stands at RM3.4 billion as of June 30. Year to date, it has secured building contracts worth RM1.2 billion.

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

The group will also maintain its manufacturing segment as part of its integrated business objective and strategy and complete existing property development projects.

Kerjaya Prospek's share price closed 2.17% or three sen higher yesterday at RM1.41, valuing the group at RM1.75 billion.

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