PETALING JAYA: Binastra Corp Bhd
(Binastra) will remain focused on sustaining growth momentum by executing its existing order book efficiently while securing new high-value contracts.
The group is expanding its presence in other states following recent entries into Sabah and Johor, and is exploring further opportunities in infrastructure and renewable energy developments.
Binastra is confident that its five ongoing construction projects with an outstanding order book value of about RM4.1bil will provide earnings visibility over the next four years.
Releasing its results yesterday for its financial quarter ended April 30, the group saw net profit jump 38.9% year-on-year, on the back of a 43% surge in revenue to RM256.8mil.
Binastra said the growth was driven by its construction segment, primarily contributed by Binastra Builders Sdn Bhd, a full subsidiary of the group, and is attributable to a higher number of active projects compared with the corresponding quarter of the previous year.
“This segment is the main contributor to the group’s overall revenue and profitability and is expected to continue to deliver positive results and improve the group’s overall results moving forward,” Binastra said in a filing with Bursa Malaysia.
On a quarterly basis, revenue declined marginally from RM270.2mil for the three months ended Jan 31, mainly due to reduced recognition from projects approaching completion.
Meanwhile, the group’s acquisition of LF Lansen Sdn Bhd is expected to broaden its service capabilities and improve its competitiveness in bidding for data centre projects.
Phillip Research said it views the deal as “value accretive” and “attractive” with the acquisition price-earnings multiple at eight times. The research house maintained its “buy” rating on Binastra with a higher target price of RM2.60.
