KUALA LUMPUR (March 21): Kerjaya Prospek Group Bhd, formerly Fututech Bhd, has bagged a RM181.31 million contract from China Communications Construction Co (M) Sdn Bhd (CCCC) for dredging works pertaining to the second phase of the reclamation for Seri Tanjung Pinang development (STP 2) in Penang.
In a filing with Bursa Malaysia today, Kerjaya said its 70%-owned subsidiary, Future Rock Sdn Bhd, has accepted a letter of award from CCCC on its appointment as a subcontractor for the dredging works.
The contract comprises work for the dredging of access channel and channel for the STP 2 project, which is expected to commence within two weeks and due to be completed on March 18, 2018.
"The award will further increase and enhance the existing order book of the company and its group of companies," said Kerjaya, adding that contribution to the group's earnings and net assets per share will start for the financial years ending 2016 to 2018.
Kerjaya executive chairman Datuk Tee Eng Ho said the win is the first land reclamation contract that the group has clinched.
“This contract win is the group’s first of such infrastructure project and it is one of the key infrastructure works of STP 2.
“The contract has widened our portfolio of residential and commercial construction works of existing and prominent clients such as SP Setia Bhd, Eastern & Oriental Bhd and Eco World Development Bhd,” said Tee.
He added that the group’s previous projects were largely related to high-rise construction works, adding that the new contract will further expand the group’s construction portfolio.
With the new contract, Kerjaya’s orderbook now stands at approximately RM2.1 billion, compared to RM1.9 billion previously.
“In the meantime, we will continue to be on the lookout for more infrastructure projects and actively tender for good construction projects.
"In addition to our enlarged resources and capabilities, Kerjaya is in a strong net cash position, where we are able to secure more projects and have a ready cash pile to guarantee and support project execution,” Tee added.
Kerjaya shares closed the morning trade 2 sen or 1.17% higher at RM1.73 today, giving it a market capitalisation of RM222.41 million. —theedgemarkets.com