By Khairie Hisyam
Construction-based group Bina Puri Holdings Bhd is looking to list its utilities arm in Indonesia by June 30, 2016 barring unforeseen delays.
Matthew Tee Kai Woon
In a statement this morning, group executive director Matthew Tee Kai Woon said the unit currently has 28MW capacity from micro diesel generators in eight locations across Indonesia.
“We expect to submit our application in February this year and to list our business on the Indonesia Stock Exchange by June 30 this year,” said Tee.
The energy unit is a relatively minor contributor to Bina Puri’s earnings. For the third quarter ended Sept 30, 2015 (3Q15), utilities made up only 0.8% of its RM95.1 million revenue.
The bulk of Bina Puri’s earnings come from construction, which made up 82% of 3Q15 revenue. Its other business concerns are property investment (7.3%), quarry and ready-mix concrete (7.9%) and polyol manufacturing (2%).
The company is targeting some RM1 billion worth in new construction jobs this year, both overseas and domestic. It expects 87% of new construction contracts to be from Malaysia.
At present Bina Puri has an outstanding orderbook of RM1.89 billion.
“We are confident of securing RM1 billion worth of construction projects based on our track record,” said Tee. “On average we are able to secure projects in excess of RM1 billion in a yearly basis.”
On the property front Bina Puri has ongoing property projects worth RM3.54 billion in gross development value (GDV). Its biggest ongoing development by value at present is the Riveria Sentral, Kuala Lumpur with an estimates GDV of RM1.29 billion.
For 3Q15 Bina Puri clocked in RM195.1 million revenue, 36% lower year-on-year, while quarterly pretax profit was 19% higher year-on-year at RM3.1 million.
However cumulative group pretax profit for the nine-month period up to Sept 30, 2015 dipped by 11% year-on-year to RM8.1 million as revenue fell 5% to RM799.9 million.
“We are optimistic on our financial performance in this financial year,” said Tee. “Our earnings profile will be complemented with the increase in property development projects and other income-recurring investments.”
For the full financial year ended Dec 31, 2015, group chief financial officer David Lee said Bina Puri expects revenue to surpass RM1 billion with bottomline hopefully touching RM10 million.
The unit, held via subsidiary P.T. Megapower Makmur holds concessions to supply electricity to Indonesia’s Perusahaan Listrik Negara (PLN), the local equivalent of Malaysia’s major electricity distributor Tenaga Nasional Bhd.
Seven of the locations comprise use micro-diesel generators with five-year concessions. The eighth is a hydro power plant in Bantaeng, South Sulawesi with a 21-year concession agreement.
P.T. Megapower Makmur currently has a paid-up capital of US$1 million. Bina Puri intends to raise this to US$4 million.
It posted RM1.2 million net profit in 2014, Bina Puri said.
At 10.10 am, Bina Puri was up half a sen to 41.5 sen per share, based on Bloomberg data.
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