Kerjaya Prospek posts 14% in 1Q net profit, declares 2.5 sen dividend

• The construction outfit said the increase in revenue for the current quarter under review was mainly because progress of construction work activities has improved.

KUALA LUMPUR (May 29): Kerjaya Prospek Group Bhd’s (KL:KERJAYA) net profit for the first quarter ended March 31, 2024 grew 14% year-on-year to RM33.55 million from RM29.41 million on the back of a 13% rise in revenue to RM337.14 million versus RM297.25 million.

In a bourse filing on Wednesday, the construction outfit said the increase in revenue for the current quarter under review was mainly because progress of construction work activities has improved.

On the property development segment, it said the Vue @ Monterez project has contributed positively to the group's results.

For the financial quarter under review, Kerjaya Prospek said the main source of income for the investment segment was interest income.

Earnings per share for the quarter was 2.66 sen against 2.33 sen previously.

Kerjaya Prospek declared a first interim single-tier dividend of 2.5 sen per share, amounting to RM31.5 million, to be paid on July 5.

In a separate statement, Kerjaya Prospek said its financial position has strengthened, with a net cash position of RM213.5 million as at March 31 from a net cash of RM167.2 million three months earlier.

It said the current ratio is 2.9 times.

Kerjaya Prospek chief executive officer and executive director Tee Eng Tiong said the construction segment continues to be its main revenue contributor.

“Going forward, while we recognise the headwinds on the macro environment such as ringgit fluctuations, skills scarcity and rising costs, we are proactively monitoring and refining our strategies to maintain a strong and sustainable bottom line.

“We have already secured RM979 million in project wins, year to date, equivalent to 65.3% of our RM1.5 billion target contract wins for this year.

“This translates to a robust outstanding order book of approximately RM4.5 billion, which will provide us financial visibility over the next couple of years,” said Tee.

Tee said Kerjaya Prospek has launched Papyrus @ North Kiara in March, and that the property development, together with Vue @ Monterez, will continue to contribute positively to the group.

“Building on our track record of success, we are cautiously optimistic that our tested and proven strategies will provide a solid base for further earnings growth as we move forward,” he said.

Kerjaya Prospek recently secured a RM567.7 million contract from Tanjung Pinang Development Sdn Bhd, an indirect subsidiary of Eastern & Oriental Bhd (KL:E&O), on May 27, 2024.

The award was in relation to the reclamation and dredging works for Seri Tanjung Pinang (Phase 2B and 2C) development at Tanjung Tokong, Penang.

At the midday break, Kerjaya Prospek dipped 1.62% or three sen to RM1.82 with 406,700 shares traded.

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