Bina Puri Holdings Bhd is poised to return to profitability in the financial year ending 30 June 2025 (FY25), marking its first core profit since FY2019, according to a recent note by TA Research. The firm is projected to achieve a core net profit of RM7.8 million in FY25, signalling a significant turnaround for the construction and infrastructure group.
TA Research further anticipates a robust growth trajectory for Bina Puri, with core earnings expected to rise by 69.2% to RM13.2 million in FY26 and an additional 11.4% increase to RM14.7 million in FY27. These forecasts are underpinned by assumptions of new construction contracts valued between RM300 million and RM500 million spanning FY26 and FY27, along with steady revenue contributions of RM56 million to RM60 million from investment properties over FY25 to FY27. Other business segments—including quarry, power, and durian plantations—are expected to have minimal impact during this period.
Insights from a recent engagement with Bina Puri’s new management indicate FY25 will be a pivotal year for the company. TA Research highlighted the importance of management’s ability to complete legacy projects and secure new contracts with sustainable margins, particularly in Sarawak, in order to support long-term earnings growth.
Despite the promising outlook, TA Research has advised risk-averse investors to adopt a cautious stance until there is clearer evidence of execution capability from the new leadership.
Conversely, for investors with a higher risk appetite, the Kuala Lumpur–Kuala Selangor Expressway (Latar Highway) may serve as a strategic asset. Although the concession turned profitable in 2023, its contribution has not yet been reflected in the company’s income statement. TA Research noted that the highway is expected to deliver stable earnings and strong cash flows, potentially acting as a financial buffer for the group moving forward.
-The Star
