Bina Darulaman 1Q net profit drops 88%

KUALA LUMPUR (May 15): Bina Darulaman Bhd's net profit fell 88% to RM279,000 in its first quarter ended March 31, 2017 (1QFY17), mainly due to a loss of interest income from the early settlement of financing for the Insaniah University College (KUIN) campus project.

In comparison, the group posted a net profit of RM2.32 million in the same quarter a year ago, its Bursa Malaysia filing today showed.

Its latest quarterly revenue, however, grew 37% to RM63.87 million from RM46.68 million a year ago, on higher contribution from the group's quarry and road paving division, mainly due to state road maintenance.

Moving forward, Bina Darulaman said its core businesses are expected to record respectable performance for the current financial year since the group has sufficient land bank and projects in hand to provide sustainable revenue.

Under its property division, it is planning to launch two new townships: Darulaman Saujana and Darulaman Putra, with some pocket developments in Kuala Kangsar and Serdang.

Profit contribution from its road and quarry division is also expected to remain stable based on demand for quarry products and the progress of ongoing road pavement projects, it said.

Its construction division will continue to support the property arm in developing affordable houses during the year.

Bina Darulaman shares closed down 0.5 sen or 0.69% lower at 72 sen, with a market capitalisation of RM218.78 million. — theedgemarkets.com

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