Friday 29 Mar 2024
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KUALA LUMPUR: Bina Darulaman Bhd’s outstanding order book has been lifted to RM438 million, which comes from its road building, quarry and construction businesses, said its group managing director Datuk Izham Yusoff.

“The group’s construction and quarry unit, BDB Infra Sdn Bhd, currently has an order book of RM238 million, while BDB Synergy Sdn Bhd has RM200 million as at August 2015,” Izham told reporters yesterday after the group’s signing ceremony with Malayan Banking Bhd (Maybank) and OCBC Al-Amin Bank Bhd for term loan deals totalling RM320 million.

Bina Darulaman’s (fundamental: 1.2; valuation: 2.6) collective order book stood at between RM150 million and RM250 million as of April 2015.

Izham noted that BDB Infra on June 1 received a letter of award from the Kedah state government to undertake road maintenance in six districts, namely Kota Star/Padang Terap, Kuala Muda/Sik, Kubang Pasu, Kulim/Bandar Baru, Pendang/Yan and Baling, for a combined RM209.9 million.

The roadworks remain the biggest contract value to date for BDB Infra.

Izham noted, however, that it would be difficult for the group to stage a repeat performance of the financial year ended Dec 31, 2014 (FY14) this year, as FY14 saw it receiving a boost from the collaboration with Perbadanan PR1MA Malaysia for an affordable housing project in Kedah.

Bina Darulaman’s net profit grew 14.5% to RM24.22 million for FY14 from RM21.14 million for FY13, while revenue jumped 17% to RM328.88 million from RM281 million.

Izham said this year, the group would be looking into property development projects in Perak and the Klang Valley as part of its plans to expand beyond the northern state.

Earlier at the event, Bina Darulaman’s property development arm,   BDB Land Sdn Bhd, signed a RM280 million financing deal with Maybank for the construction cost and development expenses for the redevelopment of Bandar Darulaman (Darulaman 2.0) in Jitra, Kedah, which carries a gross development value of RM858 million.

BDB Infra also signed a RM40.4 million agreement with OCBC Al-Amin for an Islamic financing facility to finance its new premix plant and quarry facilities in Sungai Ular, Kulim, and for the state road maintenance project encompassing the six districts in Kedah.

“Half of the proceeds from the financing facility from OCBC Al-Amin will be utilised for the expansion of BDB Infra’s quarry business towards southern Kedah, Penang and northern Perak,” said Izham.

 

This article first appeared in digitaledge Daily, on August 14, 2015.

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