This article first appeared in The Edge Financial Daily on November 23, 2017

KUALA LUMPUR: Kerjaya Prospek Group Bhd posted a record profit of RM34.41 million in the third quarter ended Sept 30, 2017 (3QFY17), driven by its construction segment which mitigated a slowdown in the manufacturing segment.

The builder also said it had bagged a RM245.35 million contract to build the upmarket Triuni Condominium within “The Sanctuary” development in Batu Uban, Penang.

Kerjaya’s net profit for 3QFY17 rose 35% to a record RM34.41 million from RM25.49 million a year ago. Earnings per share rose to 6.4 sen from 5.03 sen in 3QFY16. Its quarterly revenue also increased 20.7% to RM229.94 million from RM190.47 million a year ago.

The strong third-quarter performance lifted its net profit by 30.4% to RM96.16 million for the cumulative nine months (9MFY17) from RM73.75 million a year ago, while revenue jumped 23.4% to RM703.36 million from RM569.88 million in 9MFY16.

In a filing with Bursa Malaysia yesterday, Kerjaya said its outstanding order book stood at RM3.2 billion as at 3QFY17.

“Moving forward, the group sees the construction segment continuing as its main revenue driver. The group continues to pursue high-rise and landed property development projects locally.” it said.

“The group’s maiden project, Vista Residences, has also recorded an encouraging take-up rate, with its current unbilled sales of approximately RM67 million.”

Notwithstanding the group’s objective to expand its core business in construction, Kerjaya said it will maintain the manufacturing segment as part of its integrated business objective and strategy, and complete the existing property development.

“The group is cautiously optimistic about its overall businesses moving forward and will continue to sharpen its competitive edge to achieve sustainable growth in the market,” it said.

In a separate filing with Bursa, Kerjaya said its wholly-owned subsidiary Kerjaya Prospek (M) Sdn Bhd had accepted a letter of award from B U Developments Sdn Bhd for a RM245.35 million contract, covering three condominium towers with 552 units and spanning 5.36 acres (2.17ha).

It is the second contract awarded to Kerjaya within “The Sanctuary” development, the first being the construction of the Sanctuary bungalows.

The project is due to commence on Nov 30 and estimated to be completed in 48 months in two phases. Kerjaya said the project is expected to contribute positively to the group’s earnings and net assets per share from FY17 to FY21.