Kerjaya Prospek confident of achieving RM1b orderbook target for FY18

Kerjaya Prospek confident of achieving RM1b orderbook target for FY18
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KUALA LUMPUR (May 28): Construction outfit Kerjaya Prospek Group Bhd, which recently secured a contract worth RM357.3 million, hopes to land more construction jobs to meet its internal replenishment orderbook target of RM1 billion for the current year ending Dec 31, 2018 (FY18).

Its executive chairman Datuk Tee Eng Ho is confident the orderbook's internal target of RM1 billion is achievable by securing bigger jobs in the second half of 2018 (2H18), based on the group's track record.

“We will probably get new [bigger] jobs in the near future. We don’t see any problems and we are confident to achieve that RM1 billion orderbook internal target for this year, as we purely work on private projects, we don’t do government and infrastructure jobs. 

“We can’t say anything right now and we will keep tendering for the projects. We will definitely announce it in the near time [if we secure the job],” he told reporters, after the group's annual general meeting today.

Currently, Kerjaya Prospek’s construction division has 24 ongoing projects, with an outstanding orderbook of about RM3.05 billion as at March 31, 2018, that will continue to provide clear earnings visibility for at least three years, Tee said.

The substantial orderbook comprise of projects awarded by premium property developers in Malaysia.

“Our order book still healthy at RM3 billion, that can last us about 3 years.

“This year will be a good year for Kerjaya Prospek. If you can see the trend, usually we win the projects towards the 2H18, in terms of our the track record. Most of our jobs, we get in the 2H18,” he added.

The recent contract was awarded to its wholly-owned unit Kerjaya Prospek (M) Sdn Bhd, by BBCC Development Sdn Bhd, the master developer of the RM8.7 billion project located at the former Pudu Prison site. The BBCC is being jointly developed by UDA Holdings Bhd, Eco World Development Group Bhd and the Employees Provident Fund.

Kerjaya Prospek said the contract involves the construction of a block of eight-storey car park podium, a six-storey car park, and two towers (one 35 storeys and one 47 storeys), comprising a total of 666 service apartment units.

Separately, Kerjaya Prospek said its net profit rose 12.1% to RM32.35 million in the first quarter ended March 31, 2018 (1QFY18), against RM28.85 million in a year ago, thanks to its construction segment.

Revenue for the quarter grew 9.4% to RM255.14 million, from RM233.22 million in a previous year, according to its filing with Bursa Malaysia today.

Meanwhile, on its property development, Kerjaya Prospek expects the division to contribute positively to the group's earnings moving forward, with the encouraging take up rate in the group's property development project in Genting Permai.

“The outstanding performance, especially in the construction segment, has mitigated the slowdown in the manufacturing segment,” the group said.

On prospects, Kerjaya Prospek aims to focus on the construction segment to be its main revenue driver.

“The market would be challenging but sustainable. The group is cautiously optimistic on its overall businesses moving forward, and will continue to sharpen its competitive edge to achieve sustainable growth in the market,” the company added. 

At midday break today, Kerjaya Prospek rose one sen or 0.63% to RM1.61, giving it a market capitalisation of RM2 billion.