PETALING JAYA: Bina Puri Holdings Bhd
is expected to stage a turnaround with a core profit of RM7.8mil for its financial year 2025 ending June 30 (FY25), its first since FY19, says TA Research.
The research house also projects the group’s core profit to surge by 69.2% to RM13.2mil in FY26 and rise 11.4% to RM14.7mil in FY27, respectively.
This is premised on new construction jobs of RM300mil to RM500mil for FY26 to FY27, stable revenue contribution of RM56mil to RM60mil from investment properties for FY25 to FY27 and also, insignificant contribution from quarry, power and durian plantation segments for FY25 to FY27.
Following a recent meeting with Bina Puri’s new management, TA Research said: “All in all, we believe FY25 will be a crucial year for the new management to demonstrate its capability to not only complete those legacy projects, but also to obtain new jobs with reasonable margins especially from Sarawak especially to sustain the future earnings growth.”
As such, the research house has advised the risk-adverse investors to adopt a wait-and-see approach to see if the new management can really deliver the key ingredients for future earnings growth.
For risk-seeking investors looking for high return, TA Research noted that the Kuala Lumpur-Kuala Selangor (Latar) Highway could be a wildcard for their investments in Bina Puri now as the concession had already turned profitable in 2023, but the contribution was omitted from the group’s income statement.
“As the highway is expected to contribute consistent earnings and strong cash flow, it would be a strong buffer to the new management,” the research house pointed out.
