Bina Puri records 68.2% rise in net profit in 1Q 2010

KUALA LUMPUR: Bina Puri Holdings Bhd (Bina Puri) recorded a net profit of RM1.707 million for the quarter ended March 31, a 68.2% increase from the preceding year’s corresponding quarter of RM1.015 million. Revenue rose 128.13% to RM298.421 million from the preceding year’s corresponding quarter of RM134.952 million.

In an announcement on Bursa Malaysia on May 25, the Group shared that its construction division recorded a revenue of RM279.3 million and pre-tax profit of RM2.4 million compared with the previous corresponding period's revenue of RM110 million and pre-tax profit of RM200,000. The improved performance of this division was mainly attributed to progressive profit from on-going projects, it said.

Its quarry and ready mix concrete division recorded a revenue of RM19.6 million and pre-tax profit of RM500,000 compared to RM15.5 million and RM700,000 respetively in the previous corresponding period. The Group stated that the performance of this division is satisfactory.

For its polyod division recorded a revenue of RM2.8 million and incurred a loss of RM103,000 as compared to the previous corresponding period of RM3.8 million and RM45,000 respectively. The performance of the division, the Group said, was affected by the lack of export market due to the global economic slowdown.

The Group has successfully secured new projects locally and abroad in Thailand, Pakistan and Brunei. Bina Puri is also launching their own development projects this year in Klang Valley, Johor Baru and Kota Kinabalu. They have also been granted a construction license in Saudi Arabia.

The current value of contract work in progress for the Group is about RM2 billion, which is expected to provided a steady stream of revenue for the next three years.

The construction of the 33km Kuala Lumpur – Kuala Selangor Expressway (KLS) dual carriageway linking the coastal area of North-West Selangor with KL is on target to be fully operational by the 1Q2011. The Group is optimistic that KLS will contribute positively to the Bina Puri’s earnings.

The Group stated that it will also carry out critical review of its various core businesses to improve operational efficiency.

Bina Puri Holdings Bhd (BPHB) is a Malaysia-based company engaged in the provision of project management services and investment holding. It operates in four segments: construction, building and road construction, property development, polyol manufacturing as well as quarry and ready mix concrete.