This article first appeared in The Edge Financial Daily on March 1, 2019
KUALA LUMPUR: Kerjaya Prospek Group Bhd is expecting a “much better” financial year ending Dec 31, 2019 (FY19), as the group expects more job wins.
Speaking at a media briefing on the annual result for FY18 yesterday, group executive chairman Datuk Tee Eng Ho said in the first half of FY19, the company is expected to win at least RM835 million worth of contracts.
Tee said in FY19, the management aims to achieve higher revenue of up to RM1.3 billion compared with RM1.07 billion in FY18.
Currently, the group is tendering for about RM1.5 billion jobs, and the success rate is about 20%, according to Tee.
The group targeted to secure RM1 billion worth of jobs last year and it achieved RM989.8 million.
“So far we have RM435 million. The Old Klang Road project from my private company (Kerjaya Prospek Property Sdn Bhd) is expected to award in the first half of this year, that would be about RM450 million, so we are left with about RM300 million to hit our target of RM1.2 billion order book this year, so we are quite confident,” said Tee.
Tee, who is the founder and controlling shareholder with a 70.74% stake, shared that Kerjaya Prospek’s outstanding order book as at end-2018 was at RM3.02 billion.
The company’s net profit grew by 19% to RM34.03 million, or 2.75 sen per share, for the fourth quarter ended Dec 31, 2018 (4QFY18) from RM28.58 million, or 2.55 sen per share, as it secured more jobs from developers and encouraging take-up rate for the group’s own projects.
Quarterly revenue for 4QFY18 rose 5.2% to RM265.33 million, from RM252.31 million in 4QFY17.
For the full FY18, Kerjaya Prospek’s net profit rose by 11% to RM138.42 million, from RM124.74 million in FY17, while revenue breached the RM1 billion mark at RM1.07 billion, up 11.8% from RM955.67 million over the same period.
On property development segment, Tee said Kerjaya Prospek is seeking to amend the development plan for its project located on 1.83 hectares in Mukim Batu, Kuala Lumpur.
“We already got the full approval from DBKL (Kuala Lumpur City Hall), but we are submitting an amendment. Originally we planned to build two 28-storey blocks, now we hope to change it to a single 60-storey tower, the built-up area and number of units will be the same, about 450 units.
“If DBKL approves, the GDV (gross development value) will go up by about 20%, meaning it will add value to the group, but we do not know yet, whether it will approve or not. The original GDV is RM380 million,” he said.
As at FY18, Tee said Kerjaya Prospek’s unbilled sales amounted to RM56.73 million.
Kerjaya Prospek share price staged a rebound in late last December. It rose from a low of RM1 on Dec 21 to a high of RM1.35 on Jan 21. Based on earnings per share of 11.15 sen, the stock is trading at price-earnings ratio of 11.3 times on yesterday’s closing of RM1.26.