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BUSINESS

Kerjaya Prospek optimistic on growth, buoyed by higher demand for property

26/05/2022 04:46 PM

KUALA LUMPUR, May 26 (Bernama) -- Kerjaya Prospek Group Bhd is optimistic about its prospects this year, buoyed by healthy construction activities, driven by pent-up demand for properties and its plans to launch more projects in the future.

Executive chairman Datuk Tee Eng Ho said revenue from construction rose by 11.5 per cent in the first three months of this year, mainly due to higher progress billings from increased construction activities during the period.

"The construction segment is anticipated to be our largest contributor moving forward, and we anticipate the segment order book to rise from its current level of RM1.6 billion," he told a media briefing on the company’s first-quarter results ended March 31, 2022 (Q1 2022) here, today.

Kerjaya Prospek’s construction segment outstanding order book stood at RM4.4 billion, out of which RM2.2 billion was derived from projects linked to the group.

Tee also said that despite the higher revenue chalked up in the period under review, profit margin in Q1 2022 declined to 9.6 per cent from 9.8 per cent registered in Q1 2021.

"Profit margins were impacted by rising raw material costs, and we anticipate it to remain around this region," he said, adding the company sourced its raw materials locally.

Elaborating further, Tee said the external environment such as lockdowns in China, the Ukraine-Russia conflict, as well as supply chain disruptions have a big impact on the worldwide pricing of raw materials.

"Prices will only decrease if the situation improves...Until then, the industry will continue to struggle," he stressed.

Meanwhile, for Q1 2022, Kerjaya Prospek's net profit climbed to RM28.86 million from RM26.39 million registered in the same quarter last year, while revenue rose to RM300.59 million versus RM268.67 million previously.

-- BERNAMA

 


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