KUALA LUMPUR (June 12): Kerjaya Prospek Group Bhd has secured a RM404.35 million contract for a proposed residential development project in Kuala Lumpur.

The contract is for the main building and external works of two blocks of 39-storey apartments.

Its wholly-owned unit Kerjaya Prospek (M) Sdn Bhd received a letter of award on Monday (June 12) from BCM Holdings Sdn Bhd, a subsidiary of Ecofirst Consolidated Bhd.

The group announced to Bursa Malaysia that the contract will commence on Aug 1 and be completed within 36 months. It is expected to provide an additional revenue stream for it over the next three years.

With the latest award, Kerjaya Prospek chief executive officer and executive director Tee Eng Tiong said the group’s year-to-date contract wins increased to RM937.8 million, equivalent to 78.2% of contract wins target for the financial year 2023.

“This contract win is in addition to the other two recent contracts awarded by BBCC Development Sdn Bhd and Tanjung Pinang Development Sdn Bhd, which cumulatively amounted to RM533.4 million. The latest contract secured represents Kerjaya’s resilience in the construction industry leveraging on our experience and years of proven track record," he said in a statement.

“With that, our outstanding order book is bolstered to RM4.7 billion and we will work relentlessly to achieve our target wins for 2023, which will further enhance our financial visibility for the upcoming three years,” said Tee.

Kerjaya Prospek’s net profit increased slightly to RM29.41 million for the first quarter ended March 31, 2023 (1QFY2023) from RM28.86 million a year earlier on higher interest income.

Revenue, however, decreased 1.11% to RM297.25 million from RM300.59 million in 1QFY2022, mainly due to the progress of construction work activities, as well as absence of property development contribution.

On Monday, Kerjaya Prospek finished two sen or 1.85% higher at RM1.10, giving the construction outfit a market capitalisation of RM1.39 billion.