Kerjaya Prospek secures RM171 mil contract for 45-storey building in Penang

• The project entails the construction and execution of main building works for a 45-storey structure, including a 38-storey serviced apartment block comprising 380 units, a two-storey basement carpark, and a five-storey elevated carpark.

KUALA LUMPUR (Jan 3): Kerjaya Prospek Group Bhd has bagged a contract worth RM170.94 million from Persada Mentari Sdn Bhd, an indirect subsidiary of Eastern & Oriental Bhd, for the development of a 45-storey building on Andaman Island, Penang.

The construction outfit, whose share price hit a record of RM1.55 recently said its wholly owned subsidiary Kerjaya Prospek(M) Sdn Bhd has accepted a letter of award (LOA) from Persada Mentari on Wednesday, according to its stock exchange disclosure.

The project entails the construction and execution of main building works for a 45-storey structure, including a 38-storey serviced apartment block comprising 380 units, a two-storey basement carpark, and a five-storey elevated carpark.

The completion deadline is set at 35 months from Jan 18, 2024.

Additionally, the contract is anticipated to contribute positively to the group’s earnings and net assets per share for the financial years ending 2024 to 2026.

In a separate statement, Kerjaya Prospek chief executive officer (CEO) and executive director Tee Eng Tiong said that with this new award, the group’s outstanding order book remains ample at RM4.5 billion, ensuring long-term earnings visibility in the years to come.

“We are proud to begin the year with a strong footing, backed by this award, which will mark the first of many that we aim to achieve for the year,” Tee said.

While expressing confidence in securing new residential development projects based on the group’s extensive track record and expertise in the high-rise construction sector, Tee added that Kerjaya also aims to capitalise on lucrative opportunities across various construction classes poised for growth in 2024, further enhancing its proficiency.

At noon break on Wednesday, shares in Kerjaya Prospek traded two sen or 1.32% higher at RM1.54, translating into a market capitalisation of RM1.95 billion. Since June 30, the stock has risen by 49.7%.

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