Bina Darulaman doubles net loss in 1Q due to lower engineering, construction margins

KUALA LUMPUR (May 30): Kedah-based property developer Bina Darulaman Bhd (BDB) doubled its net loss to RM6 million for its first quarter ended March 31, 2022 (1QFY22) from RM3 million a year ago, due to lower margins from its engineering, construction and quarry division.

BDB said the division posted a pre-tax loss of RM3.9 million in the current quarter under review compared with a pre-tax profit of RM700,000 a year ago, due to lower margins from construction activities and road paving works.

As a result, the group posted a bigger loss per share of 1.97 sen for 1QFY22 compared with 0.99 sen for 1QFY21.

This was despite the group posting higher revenue of RM31.46 million for 1QFY22, up 5.2% from RM29.91 million a year ago.

On prospects, BDB said it is committed to completing the existing order book as scheduled, noting that the Pelubang water treatment plant project in Kedah is on track to be completed in 2024.

"The engineering, construction and quarry division is also confident that the remaining state road maintenance project will contribute positively to the group."

It added that the property division remains focused on developing its existing townships/landbank and unlock the potential value of the remaining landbank.

"The joint venture development of the affordable housing project located at Bandar Amanjaya, Sungai Petani is currently underway.

"The group remains confident that the existing order book and township development/landbank is sufficient to boost the performance of the group as it moves forward," it added.

At 3.51pm, BDB shares were down three sen or 8.57% to 32 sen, bringing it a market capitalisation of about RM97.23 million.