KUALA LUMPUR (May 27): Construction-based Kerjaya Prospek Group Bhd has targeted a lower orderbook of RM1 billion for the current financial year ending Dec 31, 2021 (FY21), compared with RM1.5 billion last year.
“Last year, before the Covid-19 pandemic outbreak, a lot of clients had made a commitment to me," said the group's non-executive chairman Datuk Tee Eng Ho. "[However] this year, I can't really see that much commitment due to the uncertainty arising from the pandemic, so I don't dare to set higher targets."
"I would rather be more conservative,” Tee said at the group’s 1QFY21 financial results briefing.
Still, Tee expects the group’s financial performance in FY21 to be better than FY20 given that construction activities are still allowed to run during the ongoing third round of movement control order (MCO 3.0).
The financial performance will be supported by an outstanding orderbook of RM3.4 billion for construction contracts as at March 31, 2021.
Earlier today, Kerjaya Prospek reported an 18.08% rise in net profit to RM26.38 million for 1QFY21, from RM22.34 million a year ago, as revenue increased 26.83% to RM268.67 million from RM211.84 million.
The group attributed the better showing to the full resumption of construction activities compared with 1QFY20 when the government had implemented the first MCO from March 18, 2020.
Tee said the government's latest standard operating procedures (SOPs) to limit workforce in workplaces have affected work at the group’s construction sites in the short term.
“The new SOP has affected us, as we cannot have more than 60% of the workforce working in our construction site. But we will ramp up the workforce once the sanction is lifted,” he said, adding that MCO 3.0 may not be extended beyond the end of June.
From May 25, 40% of the private sector workforce, totalling more than six million people, have to work from home as part of additional measures under MCO 3.0, which came into force from May 12 to June 7.
Tee said Kerja Prospek will stay vigilant against Covid-19 and urged the government to speed up the vaccination process in a bid to help the country's economy recover.
Kerjaya Prospek shares closed three sen or 2.44% higher at RM1.26, bringing a market capitalisation of RM1.56 billion.