Binastra’s 2Q net profit jumps on higher construction work activities

• “As the national economy is projected to remain in the range of 4.0% to 5.0% in 2024 which is supported by resilient domestic growth prospects, the property market performance is expected to remain cautiously optimistic given the unpredictable external environment,” Binastra said.

KUALA LUMPUR (Sept 12): Binastra Corp Bhd (KL:BNASTRA) said on Thursday its second-quarter net profit rose 171.4% from a year earlier, as higher construction work activities and commencement of five new projects during the period led to its revenue surging 157.5% to RM230.9 million.

Net profit for the quarter ended July 31, 2024 was RM22.86 million, compared with RM8.42 million during the same quarter in 2023, Binastra said in an exchange filing.

The company did not declare any dividend for the quarter under review.

In the six-month period ended July 31, 2024 (1HFY2025), Binastra’s net profit jumped 2.9 times to RM40.96 million, from RM14.16 million in the corresponding period last year.

“We are pleased with our financial performance for 1HFY2025, which reflects our team’s dedication and efficiency in project management,” said its managing director Datuk Jackson Tan Kak Seng in a statement accompanying the results.

Tan is confident of Binastra's prospects, as the group had secured 11 new contracts worth a total of RM2.5 billion so far in the financial year ending Jan 31, 2025 (FY2025), which contributed to its outstanding order book of RM3.3 billion.

This outstanding order book level provides earnings visibility for the group over the next four financial years, he said.

“As the national economy is projected to remain in the range of 4.0% to 5.0% in 2024 which is supported by resilient domestic growth prospects, the property market performance is expected to remain cautiously optimistic given the unpredictable external environment,” Binastra said.

“The accommodative policies, continuous government support, well-executed measures outlined in Budget 2024, and the proper implementation of strategies and initiatives under 12th Malaysia Plan are expected to continue supporting growth in the property sector.” 

Binastra shares closed 2.05% higher on Thursday at RM1.49, valuing the group at a market capitalisation of RM1.62 billion.

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