KUALA LUMPUR (Nov 25): Construction and property development outfit Kerjaya Prospek Group Berhad posted a net profit of RM25.5 million for the third quarter ended Sept 30, 2016, versus RM4.14 million a year earlier, driven by contribution from its two subsidiaries, Kerjaya Prospek (M) Sdn Bhd (KPSB) and Permatang Bakti Sdn Bhd (PBSB), that were acquired in January this year.
Revenue also climbed drastically to RM190.47 million in 3QFY16, from RM21.69 million a year earlier. Earnings per share, however, edged up to 5.03 sen versus 4.56 sen previously.
In the bourse filing today, Kerjaya Prospek said the outstanding performance especially in the construction segment, mitigated slowdown in its 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,” it said.
For the cumulative nine-month period (9MFY16), the company saw its net profit of RM73.75 million or 22.61 sen per share, growing substantially from RM11.38 million or 12.53 sen per share in the previous period; while its revenue surged up to RM569.88 million, from RM60.37 million.
Going forward, despite the company’s objective to expand its core business in construction, it will maintain its manufacturing segment as part of its integrated and complimentary business supporting the construction segment, and will continue to complete its development projects on existing landbanks.
“The enlarged group is now equipped with more advanced machineries and skilled manpower that enable it to participate in the tendering of large scale projects, and further gain access to a wider pool of well-established developers.
“We will continue to exercise vigilance and prudence in achieving our objectives, whilst expanding our scale in the construction activities, in view of current volatile global economic environment, weakening of currency, and other regulatory factors that may directly or indirectly impact the group businesses,” the company added.
Kerjaya Prospek shares were up three sen or 1.42% to RM2.15 at midday break today, with 109,700 shares exchanging hands, for a market capitalisation of RM1.084 billion.