KUALA LUMPUR, Nov 25 — Kerjaya Prospek Group Bhd’s net profit declined to RM24.18 million in the third quarter ended September 30, 2021 as compared with RM30.38 million registered in the same period a year ago.
For the period under review, revenue inched up to RM222.64 million from RM222.21 million registered in the corresponding preceding period.
“Overall, the increase in revenue for the current quarter under review was mainly due to progress construction work on site,” Kerjaya Prospek said in a filing with Bursa Malaysia today.
The company explained that under its property development segment, the Vista Residence project at Genting Permai was completed in 2019 and there are no projects under development for the financial quarter under review.
“Therefore, the property development segment has minimum contribution to the group’s results,” it added.
For the final quarter of 2021, the group will continue to monitor and implement appropriate business strategies in a timely manner to address the risk this pandemic may have on the group’s operations and financial performance.
“Nevertheless, the group is supported by an outstanding order book of RM3.6 billion for construction contracts as at September 30, 2021.
Moving forward, the group aims to focus on the construction segment to be the main revenue driver of the group.
“Notwithstanding the group’s objective to expand its core business in construction, it will still maintain the manufacturing segment to complement its core business. On the property development segment, the group is planning to launch two new development projects in the first half of 2022,” it added.
Meanwhile, Kerjaya Prospek’s non-executive chairman Datuk Tee Eng Ho said the group expects more improvement on its construction progress in the upcoming quarters.
“We adjusted the target launch dates for two of our property development projects, namely Monterez development and Yakin Land development to the first half of 2022 in order to time the market in tandem with the increasing demand for properties in Malaysia.
“I believe the market for property next year will be a bit better as the sales for October and November this year are quite encouraging,” he said at a press conference today.
In the meantime, Tee said material prices for construction in 2022 is expected to drop at the rate of 5 to 10 per cent from the recent price hike.
“As the logistics and shipment problems for the materials will be resolved, the material price will further come down within the next three to six months,” he added. — Bernama