Kerjaya Prospek's 2Q earnings leapfrog with hefty contribution from construction

KUALA LUMPUR (Aug 29): Kerjaya Prospek Group Bhd (formerly known as Fututech Bhd) delivered a good set of financial results for the second quarter ended June 30, 2016 (2QFY16), posting net profit of RM24.58 million against RM3.56 million in the previous corresponding quarter.

The big leap on the company's earnings was mainly driven by the contribution from Kerjaya Prospek (M) Sdn Bhd, a construction arm that it acquired early this year for RM438 million through share issue.

Kerjaya Prospek's quarterly revenue jumped several folds to RM193.48 million in 2QFY16 from RM23.23 million a year ago. Earnings per share, however, expanded at a small quantum to 7.07 sen against 3.93 sen previously.

The company did not declare any dividend despite the improved earnings.

In its result announcement to Bursa Malaysia today, Kerjaya Prospek explained that the outstanding performance especially in the construction segment had mitigated the slowdown in the manufacturing segment, which was due to completion of existing projects and market competition.

"With the encouraging take-up rate in the group's property development project, the segment is also expected to contribute positively to the group's earnings moving forward," the company said.

For the six-month period ended June 30, 2016 (1HFY16), Kerjaya Propsek posted accumulative net profit of RM48.26 million, or 20.56 sen per share, up substantially from RM7.24 million, or 7.98 sen per share, in the previous corresponding period.

The company's revenue ballooned to RM379.4 million in 1HFY16 from RM38.68 million a year ago.

Kerjaya Prospek's share price has soared over 80% in the past 12 months. The stock hit a record high of RM2.389 in July. At 2.28pm, it rose 1 sen or 0.44% to RM2.26, with 250,600 shares changing hands. — theedgemarkets.com

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