KUALA LUMPUR: Kerjaya Prospek Property Bhd recorded a 1.6 percent increase in net profit for the third quarter ending on Dec 31, 2023, to RM23.9 million on higher progressive recognition from the ongoing project - Bloomsvale at Old Klang Road, Kuala Lumpur.
It made a net profit of RM23.5 million in the previous year.
Similarly, revenue for the same quarter surged by 21.4 percent to RM99.3 million compared with RM81.8 million last year.
Kerjaya Prospek Property emphasised that the property development segment remains the leading revenue generator.
In the hospitality segment, Kerjaya Prospek Property reported higher revenue from events and banquets, despite a decrease in profit before tax by RM1.2 million.
This decline is attributed to expenses related to repair and maintenance works at the hotel, as well as increased staff costs to accommodate heightened activities.
For the cumulative nine-months period ended Dec 31, 2023, Kerjaya Prospek Property's revenue increased 10.3 per cent, year-on-year, from RM256.6 million to RM283.0 million.
The surge was driven by the property development segment's 11.2 per cent revenue growth, as well as a 3.3 per cent improvement from the hospitality segment. In line with the higher revenue, net profit stood at RM68.5 million.
Kerjaya Prospek Property expressed cautious optimism regarding their financial performance for the nine-month period, anticipating a positive conclusion to the year.
It attributed this outlook to the completion of the mixed development project, Bloomsvale at Old Klang Road.
The development consists of serviced apartments, office suites, shopping gallery and a 4-star hotel, namely the Courtyard by Marriot KL South.
"This development augurs great prospects for the Group to continue boosting its recurring earnings visibility and the overall financial performances.
"Going forward this year, we are well prepared to launch our latest project in Sentul and Shah Alam, with a total gross development value (GDV) of RM395 million as we are of the opinion that the property segment remains optimistic," it said in its quarterly report.
Kerjaya Prospek Property highlighted that the property development segment remains the primary contributor to its performance.
"With our healthy and resilient financial position, we are well-positioned to pursue land acquisitions to replenish our current 61-acre land bank located at strategic locations.
"This is to ensure our future development projects are not interrupted.
"Supported by our strategic decision makings and prudent cost management, we will continue to monitor the property market demand and continue to grow our business sustainably," it said.