KUALA LUMPUR: Kerjaya Prospek Group Bhd (KPG) net profit rose 23.5 per cent to RM35.57 million in the third quarter ended Sept 30, 2023 (3Q23) from RM28.81 million a year ago, on the back of higher revenue.
Quarterly revenue increased by 39.6 percent to RM362.23 million from RM259.4 million previously, driven by the improved progress of construction work activities.
The enhanced financial performance was mainly attributed to the increase in revenue from the construction division by 33 per cent to RM344.0 million and the property development division by 100 per cent to RM17.7 million, as a result of the revenue recognition from The Vue@ Monterez project.
As a result, KPG registered higher earnings per share of 2.82 sen from 2.28 sen in 3Q22.
The group has declared a third interim single-tier dividend of two sen per share in respect of the financial year ending Dec 31, 2023, which will be paid on Jan 12, 2024.
This brings the total dividend declared to date for the current financial year to six sen per share.
For the nine-month financial period ended Sept 30, 2023 (9MFY23), KPG's net profit rose to RM96.55 million from RM86.2 million previously, while revenue increased to RM968.75 million from RM836.91 million.
As at Sept 30, 2023, the group's balance sheet remained healthy with a net cash of RM204.2 million and a current ratio of 3.8 times.
Commenting on the group's performance, chief executive officer and executive director Tee Eng Tiong said KPG continued to perform steadily, and the group has once again achieved exceptional performances for this quarter, as it navigate through 2023.
He said despite the minor headwind faced by the construction industry due to the spiking price of cement, the group has confidence in its ability, track record, and expertise to continue executing its ongoing projects and eventually improve its margins and earnings.
"Year-to-date, we have achieved a contract replenishment value of RM1.6 billion, which includes our latest RM104.7 million award from Persada Mentari Sdn Bhd for the development of semi-detached and terrace houses in Penang.
"This brings our outstanding order book value to RM4.7 billion as of September 2023," he said in a separate statement.
"Despite surpassing our yearly targeted wins of RM1.2 billion worth of contracts for this financial year, we will continue to seek lucrative and viable projects to enhance our existing order book as we conclude the year.
"With the expansion of the domestic construction sector underpinned by the government's expansionary fiscal spending and further progress in the private sector projects, we are cautiously optimistic that KPG stands a lucrative chance to secure more construction opportunities in the near future," he said in a separate statement.
As for the group's property development arm, Tee said KPG is looking forward to launch its new development project, Papyrus @ North Kiara by the first quarter of 2024, which will continue to contribute positively to the group.