Kerjaya Prospek bags two contracts worth RM95.1 mil for construction projects in Penang

• On Jan 3, Kerjaya Prospek announced a contract worth RM170.94 million from Persada Mentari for the development of a 45-storey building on Pulau Andaman.

KUALA LUMPUR (Jan 8): Kerjaya Prospek Group Bhd has secured two contracts totalling RM95.1 million from two indirect subsidiaries of Eastern & Oriental Bhd (E&O) for construction projects in Penang.

In a disclosure to the stock exchange on Monday, Kerjaya Prospek said that its wholly owned unit, Permatang Bakti Sdn Bhd, had received a letter of award (LOA) from Tanjung Pinang Development Sdn Bhd.

The contract, valued at RM69.23 million, involves undertaking superstructure works for Phase two of the Gurney Marine Bridge, part of the proposed Seri Tanjung Pinang Development (STP2). Construction is scheduled to commence on Jan 22, 2024, with completion expected within 24 months.

In a separate filing, Kerjaya Prospek said that its wholly owned unit, Kerjaya Prospek (M) Sdn Bhd, has received a LOA worth RM25.91 million from Persada Mentari Sdn Bhd pertaining to piling and sub-structure contract works for a proposed 50-storey service apartment consisting of 261 units at Pulau Andaman, Penang.

Construction for this project is set to begin on Jan 22, 2024, and completion is targeted within 12 months.

Notably, this marks the third contract that Kerjaya Prospek has received from E&O. On Jan 3, Kerjaya Prospek announced a contract worth RM170.94 million from Persada Mentari for the development of a 45-storey building on Pulau Andaman.

This is considered a recurrent related party transaction, given that Datuk Tee Eng Ho, the group’s non-independent non-executive chairman, is E&O's executive chairman and an indirect major shareholder of E&O.

In a statement on Monday, Kerjaya Prospek chief executive officer and executive director Tee Eng Tiong said the group has secured a cumulative year-to-date contract value of RM266.1 million.

"We undoubtedly intend to continue expanding our order book to meet our internal target of RM1.2 billion for 2024,” said Tee.

He further added Kerjaya Prospek will maintain its direction to position itself as a resilient construction player in Malaysia and will continue to seek out projects that not only are lucrative in returns to its shareholders but also provide opportunities for the company as a renowned high-rise construction player to develop and enhance its engineering skills and offerings.

Kerjaya Prospek shares were one sen or 0.6% higher at RM1.69 by Monday's noon break, resulting in a market capitalisation of RM2.14 billion. Over the past month, the stock has risen by 16.56%.

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