Bina Darulaman returns to profit in 2Q as property earnings offset lower billings

PETALING JAYA (Aug 24): Bina Darulaman Bhd (BDB) returned to the black in the second quarter ended June 30, 2026 (2QFY2026), as a sharp improvement in its property division helped offset lower contributions from its other operating businesses.

The Kedah-based group posted a net profit attributable to shareholders of RM599,000, compared with a net loss of RM1.85 million a year earlier, according to its unaudited quarterly results filed with Bursa Malaysia on Monday (Aug 24). Earnings per share stood at 0.20 sen, against a loss per share of 0.61 sen previously.

Revenue fell 37.2% to RM65.67 million from RM104.60 million. However, gross profit increased to RM10.39 million from RM7.31 million, while profit before tax (PBT) stood at RM2.36 million, compared with a pre-tax loss of RM1.85 million in 2QFY2025.

BDB said the improvement was underpinned by the stronger performance of its property division, which mitigated lower contributions from its other operating divisions.

The property division's quarterly revenue rose to RM27.7 million from RM5 million a year earlier, while it recorded PBT of RM2.2 million, reversing a pre-tax loss of RM2.4 million. BDB attributed the turnaround to increased sales recognition and improved construction progress across ongoing development projects.

Revenue from the road building and quarry division declined to RM25 million from RM40.2 million, following lower work progress during the quarter. Its PBT fell to RM100,000 from RM3.5 million, which BDB attributed mainly to lower profit recognition from roadwork activities.

The engineering and construction division recorded revenue of RM11.3 million, down from RM57.7 million, mainly due to lower progress billings from the Pelubang Water Treatment Plant project. Its pre-tax loss narrowed to RM400,000 from RM1.3 million, which BDB said was supported by tighter cost control and savings from completed projects.

For the first six months of FY2026, BDB posted a net profit attributable to shareholders of RM2.45 million, reversing a net loss of RM5.40 million a year earlier. Revenue declined 18.7% to RM135.67 million from RM166.95 million, while PBT turned positive at RM4.21 million from a pre-tax loss of RM5.40 million.

Despite the earnings turnaround, net cash used in operating activities widened to RM53.66 million in the first half from RM26.74 million a year earlier, amid a RM36.21 million increase in trade and other receivables and a RM33.36 million decrease in trade and other payables.

Outlook

Looking ahead, BDB said its road building and quarry division is expected to be strengthened by the RM251.65 million Kedah state road-maintenance contract awarded to BDB Infra Sdn Bhd.

The 60-month contract commenced on June 1, 2026, and BDB said it is expected to provide a stable earnings base through to 2031.

The property division, meanwhile, is expected to sustain its recovery through improved sales conversion and continued development progress across Darulaman Saujana in Hosba, Aman Nusa in Langkawi and Bandar Darulaman in Jitra.

BDB said the Darulaman Commercial District, with an estimated gross development value of RM41.5 million, is expected to contribute progressively to the group's earnings.

The board remains cautiously optimistic that the group's financial performance for FY2026 will improve from the preceding financial year.

Separately, BDB disclosed that BDB Land Sdn Bhd and BDB Darulaman Golf Resort Bhd filed a notice of appeal on July 23 after the court awarded RM120,000 to a plaintiff on June 30 in a claim involving alleged loss of use and enjoyment of property due to stray golf balls.

BDB itself had been struck out as a defendant in December 2024. The group said the matter now falls below its materiality threshold and will be removed from the material-litigation section of subsequent quarterly announcements.

No dividend was declared for the quarter.

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