Bina Darulaman ends FY16 with double-digit net profit growth

KUALA LUMPUR (Feb 14): Bina Darulaman Bhd (BDB) saw its net profit rise 61.4% to RM23.27 million or 7.65 sen a share in the fourth quarter ended Dec 31, 2016 (4QFY16) from RM14.41 million or 4.74 sen a share a year ago, due to higher contribution by the property division.

Revenue grew 45.4% to RM153.92 million in 4QFY16 from RM105.84 million in 4QFY15.

In a filing with Bursa Malaysia today, BDB said its property division's profit contribution to the group stood at RM38.4 million in 4QFY16, up by RM27.2 million from 4QFY15 mainly due to the higher sales performance of its properties and the land sales.

For the full year FY16, the property developer's net profit jumped 40.4% to RM34 million or 11.19 sen a share from RM24.22 million or 8.35 sen a share the previous year, while revenue increased 46.6% to RM356.59 million from RM243.3 million in FY15.

On prospects, BDB expects to turn in a respectable performance this year in spite of current economic conditions.

"The group’s core businesses are expected to record respectable performance for this financial year (FY17) since the group has sufficient land bank and projects in hand to provide sustainable revenue.

"The property division would focus its launches on affordable segment and would only roll out higher range products on small scale basis. Besides the three existing townships, two more townships are expected to be launched by the end of 2017," it said.

BDB added that its subsidiary Kedah Holdings Sdn Bhd would also launch its Kuala Kangsar project before mid-year 2017.

"These projects would allow the property division to remain as a key contributor for revenue and profit for BDB Group in 2017," said the group.

Profit contribution from the road and quarry division, meanwhile, is expected to remain stable based on the demand for quarry products and the road pavement projects.

"The division has also completed building a new premix plant targeted to commence operation in early 2017," said BDB, adding that its construction division be focusing on two external key projects, namely the "Program Perumahan Rakyat" project in Ayer Hitam, Kedah and the water treatment plant for Syarikat Air Darul Aman Sdn Bhd this year.

At 3.34pm, BDB shares traded up six sen or 8.28% at 78.5 sen, with 2.46 million shares done, valuing it at RM215.74 million. — theedgemarkets.com

For more stories, download TheEdgeproperty.com pullout here for free.