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Bina Darulaman posts 1Q net profit of RM418,000 on higher sales

KUALA LUMPUR (June 22): Bina Darulaman Bhd (DBD) posted a net profit of RM418,000 for the first quarter ended March 31, 2020 (1QFY20), compared to a net loss RM5.85 million a year earlier, on the back of higher sales to clear its existing stock as well as steady construction progress in its Bandar Darulaman and Bandar Sejahtera townships.

In a bourse filing, the Kedah-based developer said revenue for the quarter rose 17.6% to RM46.22 million, versus RM39.28 million previously, on higher contributions from its property, road building and quarry divisions.

Earnings per share (EPS) were 0.14 sen versus a loss per share of 1.92 sen a year earlier.

Reviewing its performance, BDB said its engineering and construction division revenue came in lower due to lower contributions from external projects.

Meanwhile, its leisure and hospitality division recorded lower revenue due to constraints of the movement control order (MCO) as announced by the government as measures to mitigate the impact of the Covid-19 pandemic.

On its prospects, BDB said limited business operations in only the essential sectors, as well as restrictions on or closures of non-essential property, construction and quarry businesses, are expected to impact the group’s profitability in 2QFY20.

“The property division will focus on reducing its property inventory levels through aggressive marketing and en bloc sales and, at the same time, prioritising affordable residential project launches.

“The market for the leisure and hospitality division is expected to remain challenging due to adverse business conditions caused by Covid-19 containment measures.

“Moving forward, the group is also exploring recurring-income projects which may provide sustainable income to the group in the middle- to long-term period,” it said.

At the midday break, BDB was unchanged at 27 sen, giving it a market capitalisation of RM82.04 million.

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