KUALA LUMPUR (Jan 20): Kerjaya Prospek Group Bhd, via its a wholly-owned unit, has bagged a construction contract worth RM331.95 million for a proposed development located at Jalan Kia Peng, Kuala Lumpur.

This is its second construction job this month, bringing its contract secured to RM948.95 million year to date.

According to a filing to Bursa Malaysia today, the construction company accepted a letter of award from Patsawan Properties Sdn Bhd, an indirect joint venture company of Eastern & Oriental Bhd (E&O) with Mitsui Fudosan Asia Pte Ltd.

The contract, which entails main building works for a 54-storey building comprising 491 units of serviced apartments across 44 storeys and a 10-storey car park with common facilities, shall commence on Jan 20, 2020 and is to be completed within 35 months and 11 days.

Kerjaya Prospek said the contract is expected to provide an additional stream of revenue for the group over the next four years to the financial year ending Dec 31, 2023.

"We are very delighted to have secured another contract in such quick succession. This proves the group's strong ability to replenish its order book," said its chairman Datuk Tee Eng Ho in a separate statement today.

"Inclusive of this contract, the group has successfully increased its outstanding order book to approximately RM3.8 billion, which will provide healthy earnings visibility for the next three years," said Tee.

Notably, this contract is regarded as recurrent related party transactions of a revenue or trading nature pursuant to Bursa Malaysia Securities Bhd's listing requirements.

Eng Ho is a non-independent non-executive director and substantial shareholder of E&O with a 13.95% indirect interest, while his brother, Kerjaya Prospek executive director Tee Eng Seng, is also E&O's substantial shareholder with an indirect interest of 13.93%.

At the noon break, shares of Kerjaya Prospek were one sen or 0.77% lower at RM1.29, valuing the company at RM1.59 billion.

Click here for more property stories.

  1. Construction groups want govt to probe latest cement price increase
  2. Labour shortage, weaker ringgit among challenges faced by construction industry this year
  3. Kerjaya Prospek's 3Q net profit up 19%, declares one sen dividend