Bina Puri wins RM738m worth of jobs this year

Bina Puri Holdings Bhd
(June 26, 54 sen)
Maintain buy with a new target price of 72 sen: Bina Puri has accepted a letter of award from Medini Development Sdn Bhd to undertake office building works in Medini, Iskandar Malaysia, for a contract sum of RM195 million, to be completed within a period of 29 months.

The deal comprises a 15-storey office block (Block A), a 15-storey office block (Block B), an eight-storey podium consisting of a seven-storey multi-level carpark, one level for the foyer/lobby with facilities and a three-storey basement carpark.

This is the fourth construction job win for Bina Puri in 2015, bringing the year-to-date total win to RM738 million. Its outstanding construction order book stands at about RM2.1 billion. Assuming a profit before tax margin of 3%, the project is expected to contribute RM4.4 million of net profit or 1.9 sen per share throughout the construction period.

 We raise the order book replenishment assumptions for financial 2015 (FY15) from RM800 million to RM1 billion and raise FY16 and FY17 earnings forecasts by 4.6% and 3.6% respectively. — TA Securities, June 26

This article first appeared in The Edge Financial Daily, on June 29, 2015. Subscribe here.