by ASILA JALIL / pic by TMR FILE

KERJAYA Prospek Group Bhd expects the revival of the construction sector in the fourth quarter of 2021 (4Q21) to boost its growth prospects.

Its executive chairman Datuk Tee Eng Ho (picture) said the group will not see substantial growth in 3Q21, which is expected to record earnings almost similar to 2Q21 due to the movement restrictions as the government has just recently allowed for construction activities to resume.

“There will be much improvement in 4Q compared to 2Q and 3Q. Hopefully we can sustain earnings and it can go back to the levels we had in 1Q,” he said during the group’s virtual results briefing for 2Q21.

The group’s net profit rose 59% year-on-year (YoY) in 2Q21 to RM16 million while revenue increased 48.2% YoY to RM189.89 million as the group resumed construction projects.

For the first half of the year (1H21), Kerjaya Prospek recorded a net profit of RM42.39 million, up by 30.9% YoY while revenue was 34.9% higher YoY at RM458.56 million.

The construction segment saw an increase in its revenue and earnings by 44.7% and 32.6%, respectively, compared to preceding financial periods, mainly as construction projects were ongoing and were only halted in June 2021 as a result of Full Movement Control Order.

The segment is expected to contribute to the group’s overall turnover and profitability moving forward.

Its manufacturing segment recorded segmental profit of RM29,000 versus RM1,000 in 1H20, while the property segment contributed RM385,000 in earnings for 1H21 compared to RM101,000 in 1H20.

As at June 30, 2021, the group had cash and bank balances of RM276.09 million with total bank borrowings of RM80.03 million.

Kerjaya Prospek will launch two property projects this year namely the Monterez Development which has an estimated gross development value (GDV) of RM250 million and the Yakin Land Development with an estimated GDV of RM380 million.

Its current tender book stands between RM1.5 billion and RM2 billion.