Latest news with #KerjayaProspek
The Star
4 days ago
- Business
- The Star
Kerjaya Prospek's property arm positive on prospects
PETALING JAYA: Analysts are confident in the prospects for Kerjaya Prospek Group Bhd 's property arm, mainly supported by the new strategic landbanking in Jalan Puchong, Selangor. To recap, Kerjaya Prospek plans to submit planning applications for the acquired parcels of land in this location by the end of this year, with approval expected by the end of 2026. With an estimated gross domestic value of RM800mil, the project that comprises serviced apartment units is set to be launched in 2027. In a note, TA Securities Holdings Bhd projects Kerjaya Prospek's second-quarter earnings to come in between RM44mil and RM48mil, bringing the first half of 2025 (1H25) to RM88.2mil to RM92.2mil, which represents approximately 47.8% to 50% of its financial year 2025 earnings estimates. 'This translates into a commendable year-on-year growth of approximately 17.6% to 22.9%.'
The Star
02-07-2025
- Business
- The Star
Kerjaya Prospek banks on land buys and JV
PETALING JAYA: Kerjaya Prospek Group Bhd 's recent land acquisitions and joint-venture (JV) deal are expected to bode well for the group. The initiatives signal a deliberate move by the construction and property development group to diversify its revenue base and gradually expand its footprint within the property sector, aligning well with its long-term growth agenda, according to TA Research. 'Although the gross development value (GDV) for the Jalan Puchong parcels has yet to be disclosed, we estimate a potential GDV range of RM900mil to RM1.7bil, based on GDV per acre assumptions between RM126mil and RM230.8mil. 'This suggests a highly attractive land cost-to-GDV ratio, with the RM112.8mil purchase price remaining well below the conventional 20% land cost threshold,' the research house said in a report yesterday. Kerjaya Prospek, through its wholly owned subsidiary, Senandung Raya Sdn Bhd, has acquired three pieces of freehold land measuring a total of 2.99 ha along Jalan Puchong, Kuala Lumpur for a total purchase consideration of RM112.8mil. Kerjaya Prospek, via Senandung Raya, had inked three separate sale and purchase agreements – two with Top Up Properties Sdn Bhd and one with Sunrise Bright City Sdn Bhd. The newly acquired land parcels will serve as a landbank for Senandung Raya's property development activities. These land plots are strategically located in the Klang Valley and are easily accessible via the Kesas Highway. The area is surrounded by a few mature townships and close to plenty of amenities, including food and beverage outlets, shopping areas and hospitals with easy access to Kuala Lumpur City Centre via the Federal Highway, Lebuhraya Damansara Puchong and Kesas Highway. The parcels are also located within 1km of Kerjaya Prospek's headquarters, facilitating ease of oversight and operational coordination. The acquisitions will be funded through internally generated funds and/or bank borrowings, with the exact breakdown yet to be determined at this juncture. The completion of the transaction is expected by September 2025. TA Research said the land price of RM350 per sq ft also represents a 29% discount to Mah Sing's recent acquisition of a nearby 5.2-acre site for the M Aurora project, announced in November 2024, which was transacted at RM495 per sq ft. 'This reinforces our view that Kerjaya Prospek has secured a competitively priced land bank with ample upside potential,' the research house said. Meanwhile, TA Research said the group's JV with Aspen Vision Tanjung Sdn Bhd (AVT) provides a capital-light entry into Penang's affluent Tanjung Bungah corridor, expanding Kerjaya Prospek's northern region presence. 'The JV structure enables Kerjaya Prospek to retain development upside while mitigating execution risks and capital exposure. The collaboration also reflects a sound strategy of leveraging AVT's groundwork and local expertise,' the research house said. Kerjaya Prospek, through its wholly-owned subsidiary, Kerjaya Prospek Ventures Sdn Bhd, formed a JV with AVT, a subsidiary of Singapore-listed Aspen (Group) Holdings Ltd, to jointly develop two freehold land parcels measuring 4.5 acres in Tanjung Bungah, Penang. A special purpose vehicle, Tanjung Bungah Development Sdn Bhd (TBD), has been established to undertake the joint development, in which Kerjaya Prospek Ventures holds a 60% stake and AVT holds the remaining 40%. Additionally, the land carries a total consideration of RM117mil, comprising RM105mil in cash and RM12mil via in-kind property units. The planned development will include residences, serviced apartments and retail units, with the GDV to be confirmed later. AVT had paid RM53mil and incurred RM7mil in related predevelopment costs. TBD will reimburse AVT a total of RM60mil, of which RM4mil will be converted into AVT's share capital in TBD and RM56mil will be recognised as advances. TBD will also assume responsibility for the balance of the RM52mil cash payment through bank borrowings and/or internal resources. Completion of the transaction is expected by December 2025. Furthermore, TA Research noted these acquisitions are well supported by the group's solid balance sheet, underpinned by a robust net cash position of RM336.7mil. 'Based on previous management guidance, the group could comfortably leverage up to about RM700mil in financing facilities–translating to a manageable 0.3 times net gearing ratio, if fully drawn,' the research house said. TA Research maintained a 'buy' call on Kerjaya Prospek with an unchanged target price of RM2.97. RHB Research, which also maintained a 'buy' call on Kerjaya Prospek with a target price of RM2.80, said there are no changes to its earnings estimates pending further details (such as the GDV) and completion of the deal.
New Straits Times
01-07-2025
- Business
- New Straits Times
Kerjaya Prospek buys freehold land in Jalan Puchong for RM112.8mil
KUALA LUMPUR: Kerjaya Prospek Group Bhd is expanding its development footprint in the Klang Valley and Penang through a series of strategic land acquisitions and a joint venture (JV) that strengthens its pipeline of premium projects. The construction and property development group today announced plans to buy three parcels of freehold land covering three hectares in Jalan Puchong here for RM112.8 million. The acquisitions will be made via its wholly owned Senandung Raya Sdn Bhd. The plots, located in mature and accessible areas, are being acquired from Sunrise Bright City Sdn Bhd and Top Up Properties Sdn Bhd. "The proposed acquisitions will be financed through a mix of internally generated funds and/or bank borrowings. Completion of the transaction is expected by September 2025," Kerjaya Prospek said. In Penang, Kerjaya Prospek is entering into a joint venture with Aspen Vision Tanjung Sdn Bhd, a unit of Singapore-listed Aspen (Group) Holdings Ltd, to develop two parcels of freehold land in Tanjung Bungah. The JV will be undertaken via Tanjung Bungah Development Sdn Bhd, a special purpose vehicle in which Kerjaya Prospek Ventures Sdn Bhd holds a 60 per cent stake and Aspen Vision Tanjung the remaining 40 per cent. The land, measuring 1.8 hectares, carries a total consideration of RM117 million. "The proposed mixed-use development will feature residences, serviced apartments and retail units, with the gross development value yet to be finalised. Completion of the transaction is expected by December 2025," it added. Kerjaya Prospek chief executive officer and executive director Tee Eng Tiong said the company is strategic in choosing its investment locations. He added that both the Klang Valley and Penang are familiar markets with strong demand and significant development prospects. "Our balanced approach through a mix of JV and direct acquisitions gives us the flexibility to grow sensibly and allocate capital towards future growth opportunities. "Ultimately, we remain focused on building a strong, future-ready pipeline that enhances our property development profile and earnings visibility, while continuing to excel in our core construction business," Tee said.
Yahoo
10-06-2025
- Business
- Yahoo
Kerjaya Prospek Group Berhad (KLSE:KERJAYA) Is Paying Out A Dividend Of MYR0.03
The board of Kerjaya Prospek Group Berhad (KLSE:KERJAYA) has announced that it will pay a dividend of MYR0.03 per share on the 30th of June. This makes the dividend yield 5.7%, which will augment investor returns quite nicely. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. Before this announcement, Kerjaya Prospek Group Berhad was paying out 84% of earnings, but a comparatively small 47% of free cash flows. Since the dividend is just paying out cash to shareholders, we care more about the cash payout ratio from which we can see plenty is being left over for reinvestment in the business. Over the next year, EPS is forecast to expand by 39.2%. Assuming the dividend continues along recent trends, we think the payout ratio could reach 97%, which probably can't continue without putting some pressure on the balance sheet. Check out our latest analysis for Kerjaya Prospek Group Berhad Although the company has a long dividend history, it has been cut at least once in the last 10 years. Since 2015, the annual payment back then was MYR0.0273, compared to the most recent full-year payment of MYR0.12. This means that it has been growing its distributions at 16% per annum over that time. Despite the rapid growth in the dividend over the past number of years, we have seen the payments go down the past as well, so that makes us cautious. With a relatively unstable dividend, it's even more important to evaluate if earnings per share is growing, which could point to a growing dividend in the future. Kerjaya Prospek Group Berhad has impressed us by growing EPS at 5.9% per year over the past five years. Past earnings growth has been decent, but unless this is one of those rare businesses that can grow without additional capital investment or marketing spend, we'd generally expect the higher payout ratio to limit its future growth prospects. In summary, while it's good to see that the dividend hasn't been cut, we are a bit cautious about Kerjaya Prospek Group Berhad's payments, as there could be some issues with sustaining them into the future. The payments haven't been particularly stable and we don't see huge growth potential, but with the dividend well covered by cash flows it could prove to be reliable over the short term. This company is not in the top tier of income providing stocks. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For instance, we've picked out 1 warning sign for Kerjaya Prospek Group Berhad that investors should take into consideration. Is Kerjaya Prospek Group Berhad not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Malay Mail
10-06-2025
- Business
- Malay Mail
SST expansion won't hit residential contractors, says RHB
KUALA LUMPUR, June 10 — The upcoming sales and service tax (SST) revision and expansion is unlikely to affect contractors primarily involved in residential housing, such as MGB Bhd and Kerjaya Prospek Group Bhd, according to RHB Investment Bank Bhd. However, it said contractors involved in constructing commercial, industrial, and infrastructure projects — Sunway Construction Group Bhd, Gamuda Bhd, and IJM Corporation Bhd — will be imposed with the six per cent services tax for construction services. 'Contractors could factor in the six per cent services tax when bidding for new projects. 'For ongoing projects, contractors could likely readjust or reprice the contract sum for reviewable contracts to take into account the latest expanded services tax,' it said in a research note today. To recap, the Finance Ministry said the reviewed and expanded SST announced in Budget 2025 will be effective July 1, 2025, with a five to 10 per cent sales tax to be imposed on selected non-essential goods. The service tax will be expanded to include services such as construction services, which would see a 6.0 per cent service tax applied to providers exceeding RM1.5 million in annual revenue. Meanwhile, RHB Investment Bank said residential buildings and public housing-related works are exempt from sales tax. Exemptions also apply to business-to-business transactions to avoid double taxation. 'We also take comfort that under the sales tax revision, the government is maintaining a rate of zero per cent for basic construction materials,' it said. On the other hand, the investment bank said the data centres, the main construction segment theme, are likely to remain intact despite the expanded SST. "Assuming a hyperscaler hypothetically has three new data centre projects in Malaysia worth RM1 billion each to be awarded to a contractor, the services tax on the contractor's work would amount to RM60 million per project or RM180 million in total. 'This represents approximately 0.2 per cent of the financial year 2024 net income of hyperscalers such as Google and Microsoft,' it said. It has maintained its 'Overweight' call on the construction sector. — Bernama
