Kerjaya Prospek's net profit lower at RM90.59m in FY20

KUALA LUMPUR (Feb 25): Kerjaya Prospek Group Bhd's (KPGB) net profit for the financial year ended Dec 31, 2020 (FY20) fell to RM90.59 million from RM140.18 million posted a year ago.

Revenue also declined to RM810.99 million from RM1.05 billion previously, due to lower revenue registered in construction, manufacturing and property development segments, it said in a filing with Bursa Malaysia today.

It said the revenue for the construction segment for the year under review fell 22 per cent to RM857.49 million from RM1.09 billion in the corresponding preceding financial year as all construction projects were halted as a result of Movement Control Order (MCO) implemented on March 18, 2020 before works continued in May 2020 with SOPs. Subsequently two project sites were halted for two weeks due to COVID-19 infection among the workers.

For the manufacturing segment, its revenue decreased to RM4.73 million in FY20 compared with  RM11.50 million in FY19, as the manufacturing plant was shut down during the MCO and resumed operation gradually in June 2020.

Meanwhile, the property development division contributed a total revenue of RM2.71 million in FY20 compared to its corresponding financial year of RM48.62 million.

For the fourth quarter ended Dec 31, 2020, KPGB's net profit eased to RM27.82 million from RM36.27 million in the same quarter last year, while revenue decreased to RM248.85 million from RM268.41 million previously.

It said overall, the decrease in revenue was mainly attributed to the progress of construction works on-site.

On prospects, KPGB said it will continue to monitor and implement appropriate business strategies in a timely manner to address the adverse risk the COVID-19 pandemic may have on the group’s operations and financial performance.

"Nevertheless, the group is supported by an outstanding order book of RM3.51 billion as at Dec 31, 2020 which includes building construction contracts worth RM1.5 billion secured during FY20," it said.

Moving forward, the group will focus on the construction segment as the main group revenue driver, while maintaining the manufacturing segment as part of its integrated business objective and strategy.

On the property development segment, the group is planning to launch two new development projects in the second half of 2021, it added.

KPGB’s share price was traded at RM1.14, up by 2 sen at noon on Bursa Malaysia.

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