Bina Puri gets boost from government contract

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KUALA LUMPUR: Bina Puri Holdings Bhd’s unbuilt order book has grown to RM2.11 billion after it clinched a RM291.16 million contract from the Energy, Green Technology and Water Ministry to build a sewage treatment plant at the existing Bunus regional sewage treatment plant site in Setapak, here.

Bina Puri (fundamental: 0.15; valuation: 2.4) said its wholly-owned subsidiary Bina Puri Sdn Bhd had accepted a letter of award from the ministry last Friday for the proposed project, which will take 18 months to complete.

“With this award, we have managed to secure RM419.66 million in projects in the first quarter of 2015 and we believe there will be more opportunities to secure further projects by year end,” Bina Puri group managing director Tan Sri Tee Hock Seng said in a statement yesterday.

The project is expected to contribute positively to the group’s net assets and earnings for the financial year ending December 2015.

Tee said the proposed project on a 19.388ha site will increase the Bunus regional sewage treatment plant’s treatment loading capacity to handle an additional sewage discharge of 750,000 residents in the vicinity.

The treated sewerage water will be discharged into Sungai Gombak and ultimately Sungai Klang.

“The laying of 36km of sewerage pipes that is included in the project will cater to the expected growth of residential and commercial real estate within Setapak,” Tee added.

The Bunus project is part of the River of Life sewerage master plan for Greater Kuala Lumpur/Klang Valley under the National Key Economic Areas blueprint. Its mission is to reduce the number of smaller treatment plants and to free up the land they are sitting on for commercial and residential purposes, green space and public gardens.

Meanwhile, Tee said the Bina Puri group has been actively participating in tendering for projects both local and overseas, and will make the appropriate announcements on further projects secured to keep investors and the public informed from time to time.

Bina Puri shares closed up 5.36% at 59 sen yesterday, bringing a market capitalisation of RM118.29 million.

 

This article first appeared in The Edge Financial Daily, on March 27, 2015.