KUALA LUMPUR (July 30): Construction outfit Kerjaya Prospek Group Bhd’s wholly-owned unit Kerjaya Prospek (M) Sdn Bhd has accepted a letter of award (LoA) from Damansara Peak Sdn Bhd, an indirect subsidiary of Eastern & Oriental Bhd (E&O), worth RM139 million.
In a statement today, Kerjaya Prospek said the LoA is the group’s fourth contract secured this year, bringing its year-to-date (YTD) contract wins to RM523.5 million, and its total outstanding order book to approximately RM3.4 billion.
“The award involves the construction and completion of substructure works, main building works and all associated external works for a proposed 54-unit three-storey villa located at Damansara Heights, Kuala Lumpur.
“The contract is expected to commence on Sept 1, 2021 and will take 36 months to complete from the commencement date. The contract is expected to contribute positively to the group’s earnings and net assets per share from 2021 to 2024,” it added.
Kerjaya Prospek said that the latest contract is a recurrent related party transaction (RRPT) given that the group’s non-independent non-executive chairman Datuk Tee Eng Ho is the executive chairman and indirect shareholder of E&O.
The group also noted that two of its executive directors, Datin Toh Siew Chuon and Tee Eng Seng, are also indirect major shareholders of E&O.
“The RRPT mandate was approved by Kerjaya Prospek’s shareholders in the thirty-seventh annual general meeting (AGM) held on May 27, 2021,” it added.
Tee said that the group was delighted to secure another contract from E&O this year and claimed that “all contracts are undertaken on an arm’s length basis based on normal commercial terms”.
“This contract is expected to provide an additional stream of revenue for Kerjaya over the next three years and will further enhance our outstanding order book.
“Due to the current pandemic and implementation of various movement control orders (MCOs), the tendering process of some projects has been affected. However, I am optimistic that the quick roll-out of vaccines will help the economy recover gradually and we will have more projects coming in.
“Moving forward, we will continue to aggressively tender for good-quality projects that can deliver value to our shareholders while focusing on delivering the jobs in hand,” he added.
At Bursa’s 12.30pm break today, Kerjaya Prospek’s share price settled one sen or 0.86% lower at RM1.15, giving the group a market capitalisation of about RM1.43 billion.