KUALA LUMPUR (July 20): Kerjaya Prospek Group Bhd has bagged a RM64.22 million contract to undertake foundation piling works and associated sub-structure works for a proposed mixed development on Jalan Puchong here.

In a filing with Bursa Malaysia today, Kerjaya said its wholly-owned subsidiary Kerjaya Prospek (M) Sdn Bhd has 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 that the contract is expected to contribute positively to the group's earnings and net assets per share for the financial years ending 2017 to 2018.

The contract is regarded as 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 of whom are major shareholders of Kerjaya -- and Datin Toh Siew Chuon, who is a director of Kerjaya and the wife of Eng Ho.

In a separate 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,” he added.

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 (1QFY17), 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 in 1QFY16.

Kerjaya shares ended the morning session 2 sen or 0.57% higher at RM3.54 today, with 254,700 shares done, bringing a market capitalisation of RM1.84 billion.