KUALA LUMPUR (May 26): Bina Darulaman Bhd's net profit for the first quarter ended March 31, 2015 (1QFY15) fell 29% to RM3.67 million, from RM5.18 million a year earlier, mainly on lower property billings.

Higher marketing and administrative expenses also curbed profit, Bina Darulaman (fundamental: 0.45; valuation: 2.6) said in a filing with Bursa Malaysia today.

Bina Darulaman's revenue fell to RM36.74 million, from RM67.61 million, hampered by lower contribution from the road and quarry, property development and construction divisions.
 
Despite dismal 1QFY15 figures, Bina Darulaman expects to record a “respectable performance” in the current financial year. The company said its sufficient landbank and projects in hand would provide sustainable revenue.

“Barring unforeseen circumstances such as sharp increase in oil and commodities prices, skilled labour shortage, a hike in interest rate, further tightening of access to mortgage loans and other negative economic and political situations, the group expects to turn in a respectable performance in 2015,” Bina Darulaman said.

It is interesting to note that Bina Darulaman Bhd shares had risen, despite the profit and revenue drop. At 3:08pm, the stock rose 1.5 sen or 2% to trade at 89 sen, giving the company a market capitalisation of RM270.47 million.

One possible reason for the Bina Darulaman's share gains, is the company's valuation.

According to Bloomberg, Bina Darulaman shares trade at a price-earnings ratio of 3.27 times, versus the sector average of 16.38 times.

In price-to-book terms, Bina Darulaman shares trade at a discount to its latest reported book value per share of RM1.62.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations)