Bina Puri to bid for more projects, increase land bank, says group MD

• Group managing director and chief executive director Chai Chan Tong: The division will ensure the execution of ongoing projects for them to be completed in a timely manner, while replenishing its order book from local and overseas markets.

KUALA LUMPUR (Nov 3): Property and construction group Bina Puri Holdings Bhd is set to participate in more tenders to unlock new market opportunities actively, joint ventures, and increasing its land bank moving forward, said group managing director and chief executive director Chai Chan Tong.

He said the company expects a moderate performance for its construction division in the next financial year, following the recent Malaysia Madani Budget 2024.

“The division will ensure the execution of ongoing projects for them to be completed in a timely manner, while replenishing its order book from local and overseas markets,” he said in the company’s 2023 annual report.

Chai said the construction division’s order book stood at RM530 million as at October.

“The division is also looking into opportunities in East Malaysia (Sabah and Sarawak), as the division recognises the regions' potential for new construction job opportunities in the near term.”

He pointed out that in Budget 2024, the government set aside RM12.4 billion to Sabah and Sarawak for development.

“The property division remains optimistic with the government’s continued support for encouraging homeownership. The division is expected to perform satisfactorily in the next financial year, supported by total unsold sales of approximately RM300 million and future mixed developments in Kota Kinabalu.”

“The company is also looking into joint ventures and increasing its land bank moving forward,” he said.

Chai said the division is also looking to develop a mixed development that combines residence, leisure, retail and dining that brings investors and residents the ultimate city-suburban lifestyle, which is known as Main Place, Kota Kinabalu.

“The development is expected to boost business and investment growth along the Jalan Tuaran Bypass.”

On the lookout for new business opportunities

Meanwhile, chairman Datuk Jaul Anak Samion said Bina Puri would continue to implement several measures to maintain financial and operations stability of its businesses.

“The measures include prudent cost control, and monetise low-performing assets to mitigate risks associated with financial, labour cost and material price escalation,” he said.

Jaul added that the group is actively sourcing for new business opportunities to strengthen the recurring revenue stream.

For the financial year ended June 30, 2023 (FY2023), Bina Puri’s net loss widened to RM121.24 million, compared with RM74.74 million last year. Revenue stood at RM109.81 million, versus RM234.91 million before.

For the fourth quarter of FY2023, net loss was higher at RM60.46 million, compared with RM34.68 million for the previous corresponding quarter. Revenue was also lower at RM12.16 million, versus RM90.46 million previously.

At the midday break on Friday, Bina Puri shares were flat at six sen, with 1.75 million shares traded, giving the group a market value of RM202.18 million.

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