Bintai Kinden clinches RM61m housing construction job in Melaka

• The project, it said, involves 30 single-story semi-detached houses, 90 single-story cluster semi-detached houses, 136 single-story terrace houses, six single-story bungalows and 13 single-story shop lot units.

KUALA LUMPUR (Nov 5): Bintai Kinden Corp Bhd (KL:BINTAI) has secured a RM61.22 million contract for the construction of a housing project in Jasin, Melaka.

The group received the contract from N&T Asset Sdn Bhd, the registered owner of the 38-acre land on which the project will be developed, according to its filing with Bursa Malaysia.

The project, it said, involves 30 single-story semi-detached houses, 90 single-story cluster semi-detached houses, 136 single-story terrace houses, six single-story bungalows and 13 single-story shop lot units.

The contract requires the houses to be handed over within three years, which entails 12 months for the designing and approval from the necessary authorities, 18 months for construction and six months to obtain the Certificate of Completion and Compliance.

Bintai Kinnden said the contract is expected to positively impact the group’s earnings over the next four financial years.

The mechanical and electrical (M&E) engineering services specialist fell into Practice Note 17 status in March 2023 after its subsidiary, Optimal Property Management Sdn Bhd, defaulted on financing facilities totaling RM109 million from MBSB Bank Bhd in connection with the construction of student campus accommodation.

On Oct 4, the group submitted its proposed regularisation plan, which includes a diversification into the construction business, a share capital reduction of up to RM160 million to offset accumulated losses and improve its financial position, and a private placement of up to 244 million new shares, or 20% of its current issued shares, to raise up to RM19.5 million for debt repayment and working capital.

On Oct 17, Bintai Kinden announced a partnership with China-based Henan Province Installation Group (M) Sdn Bhd, a subsidiary of Henan Province Installation Group Co Ltd, to jointly bid for construction projects in Malaysia. The collaboration will focus on high-rise commercial and residential buildings, industrial facilities, data centres, and sub-stations and power distribution networks.

For the first quarter ended June 30, 2024, Bintai Kinden recorded a net profit of RM1.5 million, reversing a net loss of RM2.74 million from a year earlier. This improvement was due to a RM1.77 million gain from waiver of payables and a RM560,000 gain from further discounts received from suppliers.

Revenue for the quarter, however, declined 47.4% to RM5.35 million from RM10.16 million, due to lower contributions from the M&E segment as well as the investment holdings and others division.

As of end-June, the group had RM133.61 million in short-term debt against cash and bank balances of RM2.31 million.

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