Kerjaya Prospek wins first job in 2025 — RM256m contract in Shah Alam for E&O’s unit

• Kerjaya Prospek said the scope of the project, clinched through its wholly owned subsidiary Kerjaya Prospek (M) Sdn Bhd, includes the construction of 360 units of three-storey terrace houses, alongside a clubhouse, landscaping works, and other related infrastructure.

KUALA LUMPUR (Jan 6): Construction outfit Kerjaya Prospek Group Bhd (KL:KERJAYA) has bagged a RM256.4 million contract from Eastern & Oriental Express Sdn Bhd (E&OE) to undertake construction works in Elmina West, Shah Alam, Selangor.

In a filing with Bursa Malaysia on Monday, Kerjaya Prospek said the scope of the project, clinched through its wholly owned subsidiary Kerjaya Prospek (M) Sdn Bhd, includes the construction of 360 units of three-storey terrace houses, alongside a clubhouse, landscaping works, and other related infrastructure.

“The contract was undertaken on an arm’s length basis and based on normal commercial terms. E&OE is an indirect subsidiary of Eastern and Oriental Bhd (KL:E&O), in which certain directors and major shareholders of Kerjaya have direct or indirect interests,” it added.

The contract is regarded as recurrent related party transactions, as Kerjaya Prospek non-executive chairman and major shareholder Datuk Seri Tee Eng Ho also serves as the executive chairman and major shareholder of E&O. Tee holds a 67.64% stake in Kerjaya Prospek, and a 58.26% stake in E&O. His brother, Datuk Tee Eng Seng, is an executive director and major shareholder of both companies.

The project will be delivered in three phases, with construction slated to begin on Jan 20, and due for completion within 26 months.

In a separate statement, Kerjaya Prospek chief executive officer and executive director Tee Eng Tiong said the addition of the latest project brings the group’s total outstanding order book to RM4.2 billion, which will ensure sustained earnings visibility for the next three years.

“This new project win exemplifies our commitment to drive great value for shareholders, while solidifying our position as one of the top players in the construction sector. We look forward to continuing delivering exceptional results and maintaining our momentum of growth, as we embark on this new financial year,” he said.

At Monday’s noon market break, Kerjaya Prospek shares closed unchanged at RM2.29, valuing the group at RM2.9 billion. The stock has risen 37% over the past 12 months. Meanwhile, E&O’s shares were down 2.5 sen or 2.58% to 94.5 sen, translating into a market capitalisation of RM2.38 billion. The counter has risen 33% in the past one year.

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