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Kerjaya Prospek bags RM213.75m contract for mixed development works

KUALA LUMPUR (July 19): Kerjaya Prospek Group Bhd has bagged a contract worth RM213.75 million from Yong Tai Bhd, for the construction of main building works of a proposed mixed development project, known as "The Apple".

In a filing with Bursa Malaysia today, the group said it clinched the contract via its wholly-owned subsidiary, Kerjaya Prospek (M) Sdn Bhd (KPSB).

The contract works to be undertaken by KPSB are expected to commence in August 2016 and due to be completed in 27 months.

"The Apple" is a joint venture development project between Yong Tai and PTS Properties Sdn Bhd in Melaka.

It comprises of a 16 storey hotel building with 284 rooms, known as "Courtyard by Marriott"; a 32 storey service suite building, with 361 units of service apartments; and an eight storey podium of car park.

"The latest contract would further increase and enhance our earnings visibility, going forward," the group said.

With the latest win, the construction outfit has secured RM1.09 billion worth of jobs year-to-date (YTD), surpassing its internal target to secure an order book of RM600 million this year.

"As at June 30, 2016, our tender book was stood at approximately RM2 billion, mainly from Klang Valley and Penang," the group said.

It said the group's winning rate is about 20% to 30%, and is working towards more job wins by the end of the year, to sustain and deliver more values to its shareholders.

With the Yong Tai's contract, Kerjaya Prospek's total outstanding order book soared to RM2.7 billion. The current orderbook would keep the company busy at least until 2019, and provides steady income during the period.

The group noted the property sector was experiencing a downturn, and hence continues to look for more premium property developer for new contracts.

"We are expanding our customer base. We have tied up with BCB Bhd earlier and [have] now teamed up with Yong Tai," executive chairman Datuk Tee Eng Ho told theedgemarkets.com in an interview.

Apart from that, Kerjaya Prospek has declared a four sen interim dividend, amounting to about RM21 million, payable on Aug 18. Last year, the group declared a total dividend of three sen per share.

Recall that Tee injected his own construction outfits, Kerjaya Prospek and Permatang Bakti Sdn Bhd, into Fututech for RM458 million last year.

The asset injection saw the emergence of Fututech, which has been renamed Kerjaya Prospek, as a premium construction outfit. Its main clients are E&O Bhd, Eco World Development Group Bhd and S P Setia Bhd.

On its property segment, Tee said the group will embark on the construction of its second property development, dubbed "Monterez" Golf Club, Selangor, with a gross development value (GDV) of RM200 million.

"We target to soft launch the project by next year," he said.

For its maiden property project — Vista Residences in Gohtong Jaya, Genting Highlands, Tee said the take up rate stands at 60%, as at June 30, 2016.

The project was first launched in January this year, with GDV value of RM300 million. Vista Residences presents just 378 luxury units, ranging from 844 to 3,144 square feet, amidst beautiful landscaped grounds.

The counter climbed to its historical high today at RM2.36, after 652,000 shares exchanged hands. On a one year basis, it had gained RM1.19 or 101%, from a low of RM1.17 on Aug 25 last year. — theedgemarkets.com

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