Bina Darulaman 1Q net profit up two-fold to RM6.88m

KUALA LUMPUR (May 21): Bina Darulaman Bhd's net profit for the first quarter ended March 31, 2012 rose two-fold to RM6.88 million from RM3.13 million a year earlier, on the back of a 121% jump in revenue to RM73.39 million from RM34.57 million a year earlier.

Earnings per share was 9.44 sen compared to 4.30 sen in 2011, while net assets per share was RM3.27.

Reviewing its performance on Monday, the company said it registered higher earnings in its road and quarrying, construction property divisions, while its golf and hotel division posted a loss due mainly to the temporary partial closure of the golf course for upgrading and restoration works.

The hotel business is also generally slower in the early part of the year, it said.

Bina Darulaman said both the revenue and profit reflect the annual trend which would see its core businesses gaining pace during the second half of the year.

On its prospects, Bina Darulaman said its core businesses were expected to return respectable performance for the current year despite a host of uncertainties surrounding the economy both local and international.

"[The] Road and quarrying division is in line to secure new jobs, and so is the construction division.

"The construction division has enough jobs in hand to maintain its leading contribution to the group. Whereas the property division should be able to maintain its contribution given the encouraging response for its products," it said.

The company said the golf and hotel division was expected to register improved performances from the fourth quarter of this year.

"Barring unforeseen circumstances such as sharp increase in oil and commodities prices, a hike in interest rate, further tightening of access to mortgage loans and other economic and political situations, the group expects the result for the year 2012 to be comparable with the previous year," it said.