Kerjaya Prospek’s 2Q earnings up 10% on record quarterly revenue

• In a bourse filing on Friday (Aug 18), Kerjaya Prospek said its revenue grew 11.7% to RM309.28 million, compared to RM276.92 million a year ago, due to improved progress of construction work activities.

KUALA LUMPUR (Aug 18): Kerjaya Prospek Group Bhd saw a 10.6% increase in net profit to RM31.57 million for its second quarter ended June 31, 2023 (2QFY2023), from RM28.54 million a year earlier, as the construction outfit posted a record quarterly revenue for 2QFY2023.

In a bourse filing on Friday (Aug 18), Kerjaya Prospek said its revenue grew 11.7% to RM309.28 million, compared to RM276.92 million a year ago, due to improved progress of construction work activities.

Notably, the group’s 2QFY2023 net profit is the highest since 4QFY2019 at RM36.23 million.

In line with the better financial performance, Kerjaya Prospek declared a second interim dividend of two sen per share, payable Oct 6, 2023. This brings its total proposed dividend year-to-date to four sen per share, higher than the three sen in the corresponding period last year.

For the cumulative six months ended June 30, 2023 (6MFY2023), Kerjaya Prospek’s net profit rose 6.2% to RM60.98 million, from 6MFY2022’s RM57.4 million. Revenue also increased 5% to RM606.5 million from RM577.5 million during the same period a year earlier.

“The enhanced financial performance was mainly attributed to the higher progress billings as a result of the improvement in progress of construction works activities,” Kerjaya Prospek wrote in a separate statement. 

“The construction segment continues to be the main revenue contributor to the group, contributing 99.8% of 6MFY2023’s revenue. This trend is expected to continue in the future.”

As at June 30, 2023, Kerjaya Prospek said its balance sheet remained healthy with a net cash of RM203.7 million and a current ratio of four times. The group also has an outstanding order book of RM4.5 billion for construction contracts.

Kerjaya Prospek’s chief executive officer and executive director Tee Eng Tiong said the group has secured a total of RM983.8 million worth of contracts year-to-date and is close to achieving its target win of RM1.2 billion worth of contracts for FY2023.

He further added: “With the conclusion of the recent state elections, we are positive Malaysia will achieve political stability and attract more foreign direct investments (FDIs) into Malaysia. The increase in FDIs may therefore translate into more construction job opportunities for Kerjaya Prospek in the near future.”

As the group’s construction segment continues to be the main revenue driver, Kerjaya Prospek said it intends to maintain its manufacturing segment to complement its core business.

In regards to the group's property development segment, Kerjaya Prospek plans to launch another new development project called Yakinland Development in the second half of 2023.

During Friday’s noon break, shares of Kerjaya Prospek were trading unchanged at RM1.20, valuing the group at RM1.52 billion.

Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!