Bina Darulaman 3Q net profit up 58.1% on revenue surge

KUALA LUMPUR (Dec 5): Bina Darulaman Bhd reported a 58.1% increase in net profit for its third financial quarter ended Sept 30, 2016 (3QFY16), to RM5.8 million or 1.91 sen per share from RM3.67 million or 1.21 sen per share a year ago due to a 98.8% surge in 3QFY16 revenue to RM87.18 million.

In 3QFY15, it registered a revenue of RM43.85 million.

In a statement today, Bina Darulaman said the surge in revenue was due to higher contribution by the group's property and road and quarry divisions, which recorded better revenue mainly from Taman Tunku Intan Safinaz (TTIS) enclave sales and the state road maintenance project respectively.

Bina Darulaman group managing director Datuk Izham Yusoff said the increase in revenue was due to an early start in January 2016 of the ongoing state road maintenance project compared to the previous year when they commenced in June 2015.

"The full year operations has contributed significantly in 2016. Additionally, profit also increased due to lower contract costs," he said.

For the full nine months ended Sept 30, 2016 (9MFY16), the group reported a net profit of RM10.73 million or 3.53 sen per share, 9.5% higher than its 9MFY15 net profit of RM9.8 million or 3.22 sen per share.

Revenue for 9MFY16 came in 47.4% higher at RM202.67 million compared to its 9MFY15 revenue of RM137.46 million.

For its financial year ending Dec 31, 2016 (FY16), Izham said Bina Darulaman's core businesses are expected to record respectable performance since the group has sufficient land bank and projects in hand to provide sustainable revenue.

He added that the property division should be able to maintain its contribution given the encouraging responses for its product launches in Bandar Darulaman, Darulaman Perdana and Darulaman Utama in Kedah, which includes affordable housing.

Bina Darulaman shares did not trade this morning. It last traded up 1.56% to 65 sen on Nov 28, for a market capitalisation of RM197.51 million. — theedgemarkets.com