Bina Puri reports 34% drop in Q1 net profit

PETALING JAYA: Bina Puri Holdings Bhd's net profit for the first quarter ended March 31, 2016 fell 34% to RM812,000 from RM1.24 million a year ago due to lower sales from the construction and property divisions.
Revenue also dropped 13% to RM294.48 million from RM338.41 million in the previous corresponding period.
The group said it will continue to focus on and develop its major business segments, which are in construction and property development. The current value of contract work in progress for the construction of several projects is RM1.5 billion, which is expected to provide a steady stream of revenue for the group over the next three years.
For the property development business segment, the group would continue with other developments projects in Klang Valley, Johor Baru, Pahang and East Malaysia with an estimated projected gross development value of RM3 billion. This is expected to contribute a better profit margin for the group in comparison to the construction business segment of the group.
For other business segment, the group had entered into an agreement with PT.PLN (Persero), Wilayah Sulawesi to build and operate a mini hydro power plant with capacity of 4,200 KW in Sulawesi. The tenure of the Power Purchase Agreement is 20 years effective from the date of commercial run of the power plant expected in second quarter of 2016.
The group is also currently exploring other business opportunities that would contribute more recurring income to the group in the future.