KUALA LUMPUR (May 27): Kerjaya Prospek Group Bhd's net profit for the first quarter ended March 31, 2022 (1QFY22) increased by 9.38% to RM28.86 million from RM26.39 million, on the back of higher revenue.

Earnings per share rose to 2.33 sen from 2.13 sen.

In a Bursa Malaysia filing on Thursday (May 26), the group also announced its highest quarterly revenue ever after it increased by 11.88% to RM300.59 million from RM268.67 million a year earlier, underpinned by progress in construction work activities.

The group also declared an interim dividend of two sen per share, to be paid on July 8.

On a quarterly basis, the group's net profit declined by 5.04% from RM30.39 million reported for the immediate preceding quarter while revenue came in higher by 5.95% from RM283.72 million.

Commenting on the results in a statement, Kerjaya Prospek's chief executive officer and executive director Tee Eng Tiong said: "This new high speaks volume of our strong track record in delivering results and ability to win contracts to bolster the group's earnings visibility. Evidently, we have secured three contracts worth a total of over RM1 billion since the beginning of the year, which strengthened our outstanding order book to RM4.4 billion, sustaining our earnings over the next five years.

"Besides that, we are targeting to launch two new property development projects, namely Dutamas Development (Yakin Land) and Monterez Development, with a total gross development value of RM730 million, in the second half of 2022. Going forward, we expect the property development division to contribute a sizeable portion to our bottom line."

Meanwhile, Kerjaya Prospek said in its filing with Bursa that it will continue to monitor and implement appropriate business strategies in a timely manner to address the risk of post-Covid-19 challenges on the operations and financial performance of the group, such as escalating raw material prices and shortages of skilled manpower.

"The group remains focused on the construction segment to be the main revenue driver of the group.

"Notwithstanding the group's objective to expand its core business in construction, it will still maintain the manufacturing segment to complement its core business," it said.

In the property development segment, the group is planning to launch two new development projects in the second half of 2022.

At the time of writing, shares in Kerjaya Prospek traded two sen or 1.75% higher at RM1.16, giving it a market capitalisation of RM1.44 billion.

Edited by Joyce Goh

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