Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on July 21, 2017

KUALA LUMPUR: Kerjaya Prospek Group Bhd has bagged an RM64.22 million contract to undertake foundation piling works and associated substructure works for a proposed mixed development in Jalan Puchong here.

In a filing with Bursa Malaysia yesterday, Kerjaya said its wholly-owned subsidiary Kerjaya Prospek (M) Sdn Bhd had accepted a letter of award from Kerjaya Prospek Property Sdn Bhd (KP Property), a related party, for the proposed job.

The construction works are for a block of 25-storey hotel and office building and two blocks of 53-storey service apartment building on top of an 11-storey podium, with one partial underground level and a three-storey basement.

Kerjaya said works are to commence on Aug 2, with completion on Oct 1, 2018.

“The contract will further increase and enhance the group’s existing order book,” it said, adding the contract should contribute positively to the group’s earnings and net assets per share for the financial years ending Dec 31, 2017 (FY17) and FY18.

The contract is a recurrent related party transaction as KP Property is a company owned by Kerjaya executive chairman Datuk Tee Eng Ho and executive director Tee Eng Seng — both are major shareholders of Kerjaya — and Datin Toh Siew Chuon, who is a director of Kerjaya and also Eng Ho’s wife.

In a statement, Eng Ho said Kerjaya’s outstanding order book stood at RM2.6 billion as at March 31, 2017, with a net cash position of RM147.08 million. “We are on the right track to achieve another record-breaking year for the group.”

For the financial year ended Dec 31, 2016, Kerjaya recorded a record net profit and revenue of RM99.97 million and RM805.37 million respectively, driven by contributions from the construction and property development divisions.

For the first quarter ended March 31, 2017, Kerjaya posted a 21.9% increase in net profit to RM28.85 million from RM23.68 million a year ago on the back of a 25.4% jump in revenue to RM233.22 million from RM185.93 million.
 

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