Bina Puri bags RM864m Pakistan highway contract

KUALA LUMPUR: Bina Puri Holdings Bhd has secured its much-awaited Pakistan highway concession contract.

The project, worth 24.93 billion rupees (RM864 million), is for the construction of the Karachi-Hyderabad Motorway (M-9) in Pakistan, after which it will hold the concession for 28 years.

In a statement yesterday, Bina Puri said its wholly-owned subsidiary, Bina Puri Pakistan (Pvt) Ltd signed a concession agreement with the National Highway Authority (NHA) of Pakistan on Monday for the construction of the 136km motorway. The conversion of the existing four-lane Karachi-Hyderabad superhighway into a six-lane motorway (M-9) will be on a build-operate-transfer (BOT) basis.

“This is also another achievement for Bina Puri to participate in its second BOT expressway project after the first one in Malaysia — the KL-Kuala Selangor Expressway Bhd (Latar Expressway),” Bina Puri group managing director Tan Sri Tee Hock Seng said in the statement.

“For the Karachi-Hyderabad Superhighway, we are working with our financiers towards achieving the financial close, which is six months from the signing of the concession agreement today,” he said.

The project involves upgrading the existing four-lane Karachi-Hyderabad superhighway into a six-lane motorway with the construction cost of 18.26 billion rupees with a construction period of over 30 months. The concession period will be for 28 years.

Bina Puri said it has a current unbuilt book order of RM2.31 billion.

Tee (second from left) presenting a memento to NHA chairman Syed Muhammad Ali Gardezi after the concession agreement signing on Jan 16. Also present were (from left) Bina Puri executive director Matthew Tee and Pakistan Federal Minister for Communications Dr Arbab Alamgir Khan.

In Pakistan, Bina Puri has participated in construction for the Defence Housing Authority (DHA) in Lahore last year with a contract value of RM185 million.

In 2010, it completed the construction of the Nippon Paint factory at Lahore for a contract sum of RM16.5 million.

In an earlier interview, Bina Puri executive director Matthew Tee told The Edge Financial Daily that the project will likely yield an internal rate of return of at least 20%. While that is high by Malaysian standards, he said it was also due to the high cost of broowing in Pakistan, with interest rates hovering between 14% and 15% per year.


This article appeared in The Edge Financial Daily, January 18, 2012.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Bina Puri climbs on Pakistan highway job

Bina Puri Holdings Bhd rose to a two-month high in Kuala Lumpur trading after the Malaysian builder won a highway contract in Pakistan valued at about RM864 million.

The stock climbed 4.4 percent to 95.5 sen at 9:04 a.m. local time, set for its highest close since Nov. 8. -- Bloomberg



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Bina Puri rises on inking Pakistan highway concession agreement

KUALA LUMPUR (Jan 18): BINA PURI HOLDINGS BHD [] shares rose on Wednesday after its Pakistan subsidiary sealed a RM864 million concession agreement with the National Highway Authority for a motor highway.

At 9.05am, Bina Puri gained 4.5 sen to 96 sen with 90,100 shares done.

Under the deal, Bina Puri will build a 136km-long motorway under a build-transfer-operate concept.

Bina Puri's subsidiary, Bina Puri Pakistan (Private) Ltd had signed the 28-year concession agreement for the conversion of the existing four-lane Karachi-Hyderabad superhighway into a six-lane motorway.

Bina Puri said the CONSTRUCTION [] cost was RM644 million and that the construction, upgrading and rehabilitation of the motorway is to be completed over 30 months, adding that it expected the groundbreaking to be sometime in March 2012.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

HDBSVR sees KLCI heading towards 1,530

KUALA LUMPUR (Jan 18): Hwang DBS Vickers Research said on the FBM KLCI could extend its rebound from Tuesday’s 10.3 point gain and climb towards the resistance level of 1,530.

The research house said this comes as Wall Street saw overnight gains. Major U.S. equity indices rose between 0.4% and 0.6% amid positive economic data and lower borrowing costs for Spanish bonds.

“In terms of share price actions on our local bourse, of interest will be: (a) Tenaga, as its latest quarterly results show the Group’s earnings is on the road to recovery following an earlier gas shortage problem; (b) BinaPuri, after clinching a toll concession agreement in Pakistan valued at RM864 million; and (c) Axiata, in response to news report saying that it is in talks to buy a stake in an Indian telco company,” it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Stocks to watch: Tenaga, Proton, Bina Puri, Nextnation

KUALA LUMPUR (Jan 18): Stocks on Bursa Malaysia could see some positive upside on Wednesday, as sentiment is underpinned by firmer close on regional markets after the favourable GDP data growth in China.

Reuters reported that the slightly better economic news from China and Germany countered concerns over Europe's debt crisis on Tuesday, lifting European shares and the single currency, but Greek default fears and a looming debt sale by Spain held gains in check.

The latest survey of German economic sentiment, conducted by the ZEW think tank, posted its biggest ever monthly rise in January, easing fears of a recession in Europe's largest economy.

Among the stocks to watch on Wednesday include TENAGA NASIONAL BHD [], PROTON HOLDINGS BHD [], BINA PURI HOLDINGS BHD [] and NEXTNATION COMMUNICATION BHD [].

Hard disk drive manufacturers could see trading interest again after Western Digital Corp expected its two factories in Thailand to return to pre-flood production levels by September after the planned resumption of operations at its Navanakorn plant in March.

Western Digital, hit hard by the floods, resumed production at its Bang Pa-in plant in central Ayutthaya on Nov. 30 and its objective is to bring back its capacity to rapidly support its customers.

Reuters quoted Western Digital president and CEO John Coyne said the impact of the floods had reduced its output by 30%.

Tenaga Nasional Bhd expects to return to black in the second quarter ending Feb 2012, boosted by the RM2 billion received from Petroliam Nasional Bhd and the government under the fuel cost-sharing mechanism.

It posted a net loss of RM224.70 million for the first quarter ended Nov 30, 2011 compared to net profit RM716.50 million a year earlier. The losses were due mainly to 29.5% increase in operating expenses due to continued use of oil and distillate as alternative fuel to generate electricity.

Meanwhile, a day after DRB-HICOM BHD [] emerged as the successful bidder for Khazanah Nasional Bhd’s 42.7% stake in Proton Holdings Bhd, DRB-Hicom was actively buying up the shares from the open market.

DRB-Hicom bought 39.927 million Proton shares or 7.27% stake via open market at prices ranging from RM5.40 to RM5.47 per share.

Bina Puri Holdings Bhd’s Pakistan subsidiary has inked a concession agreement with the National Highway Authority of that country to build a 136km-long motorway under a build-transfer-operate concept for a contract value of RM864 million .

It said on Tuesday that its subsidiary, Bina Puri Pakistan (Private) Ltd had signed the 28-year concession agreement for the conversion of the existing four-lane Karachi-Hyderabad superhighway into a six-lane motorway.

Bina Puri said the CONSTRUCTION [] cost amounted to RM644 million and that the construction, upgrading and rehabilitation of the motorway is to be completed over 30 months, adding that it expected the groundbreaking to be sometime in March 2012.

Nextnation Communication Bhd expects cumulative profit of about US$7 million over the initial period of three years from its IT infrastructure project with Indonesia’s PT Inovisi Infracom, Tbk.

IOI CORPORATION BHD []’s subsidiary Multi Wealth (Singapore) Pte Ltd has won the tender bid for a parcel of land in the island republic for S$408 million (RM995.50 million).

AXIS Real Estate Investment Trust (Axis REIT) has targeted to increase its total assets portfolio from RM1.28 billion at end-2011 to RM2 billion by 2013. In the immediate term, it expects its portfolio increase to about RM1.4 billion once it completes two property acquisitions at the end of this month.

Axis REIT has identified PROPERTIES [] worth RM545.3 million for possible acquisitions and is conducting due diligence on a number of them.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Bina Puri inks RM864m Pakistan highway concession

KUALA LUMPUR (Jan 17): BINA PURI HOLDINGS BHD []’s Pakistan subsidiary has inked a concession agreement with the National Highway Authority of that country to build a 136km-long motorway under a build-transfer-operate concept for a contract value of RM864 million .

It said on Tuesday that its subsidiary, Bina Puri Pakistan (Private) Ltd had signed the 28-year concession agreement for the conversion of the existing four-lane Karachi-Hyderabad superhighway into a six-lane motorway.

Bina Puri said the CONSTRUCTION [] cost amounted to RM644 million and that the construction, upgrading and rehabilitation of the motorway is to be completed over 30 months, adding that it expected the groundbreaking to be sometime in March 2012.

“The M-9 highway is the gateway to Pakistan as Karachi is the only port city in the country.

“We are working with our financiers towards achieving the financial close, which is six months from the signing of the concession agreement,” it said.

Bina Puri said its current unbuilt book order stood at RM2.31 billion as at to date.

The company said the contract was not expected to contribute positively to its earnings for the financial year ending Dec 31, 2012.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Bina Puri eyes 20% IRR from Pakistan highway concession

PETALING JAYA: Bina Puri Holdings Bhd is expecting a minimum internal rate of return (IRR) of 20% for the 28-year concession of Motorway-9 (M-9) in Pakistan, according to its executive director Matthew Tee.

Although this rate is considered high by Malaysian standards, Tee said the cost of borrowing in Pakistan is also quite high, with interest rates hovering between 14% and 15% per annum.

To recap, Bina Puri announced it had received a letter of intent dated Nov 11 from the National Highway Authority (NHA) in Islamabad, Pakistan for the conversion of the existing four-lane Karachi-Hyderabad super highway into a six-lane motorway, M-9, on a build, operate and transfer basis.

The M-9 links Hyderabad with Karachi, Pakistan’s largest city and seaport.

“We are currently negotiating the financial and legal aspects of the concession agreement with them. We will make further announcement on the progress of the concession,” the company told the stock exchange.

The project involves the upgrading of the M-9 from the current four lanes to six lanes, with the costing worked out to around 18.2 billion Pakistani rupees or around RM631 million, according to Tee.

Apart from the construction job, Bina Puri is slated to get a 28-year concession for the collection of tolls at the highway, which will increase its recurring income stream.

Tee is clearly excited about the prospects of the Pakistan highway concession.

Tee says the key to venturing abroad is to ensure that the clients or paymasters have the means to pay for the services rendered.

“If you look at our financial results, almost 100% of our revenue comes from the construction business, and income from construction business is cyclical.

“Now with the concession agreement, we plan to diversify our income stream to a more stable source. The highway (M-9) is the most lucrative highway in the whole of Pakistan, with around 23,000 vehicles using the highway every day,” he said.

As at end-November last year, the company’s order book amounted to RM2.7 billion.

“We will be focusing on this project in Pakistan for the time being, as it is already quite a substantial project. The political environment in the country also requires us to be cautious in selecting which projects we should take up,” said Tee.

As far as the funding is concerned, Tee said the group is still working things out with its financial advisors. He also does not rule out Bina Puri taping the capital markets if the need arises.

The company has just concluded the third and final tranche of its private placement exercise, which saw 11.23 million shares placed out at RM1 each, a premium to the last traded price of 93.5 sen.

If all goes well, the Pakistan highway could be Bina Puri’s second highway concession and its first outside Malaysia.

Bina Puri has a 50% stake in KL-Kuala Selangor Expressway Bhd, which operates the KL-Kuala Selangor Expressway (Latar) that connects Rawang with Kuala Selangor through Assam Jawa.

In recent years, some Malaysian companies have been venturing overseas to look for greater opportunities.

This was particularly the case for local construction companies as jobs in Malaysia were getting scarce.

However, much to the disappointment of shareholders, some of these overseas ventures have not been generating good returns, with many companies operating in the Middle East posting losses.

However, Tee said the key to venturing abroad is to ensure that the clients or paymasters have the means to pay for the services rendered.

In Bina Puri’s case, he said the group only deals with governments or government-linked companies (GLCs), as these entities are unlikely to have payment issues.

“All this while, the Pakistani authorities have been honouring their commitment to us, so we are quite confident and comfortable working with them,” he said.

Indeed, Pakistan is not an unfamiliar terrain for Bina Puri.

In September last year, the company completed the construction of 174 villas called Phase 6, Defence Raya Golf Resort, Defence Housing Authority, in Lahore, the country’s second largest city. The contract was valued at RM194 million. In 2010, it completed construction works for the Nippon Paint Factory at Lillani Kasor, Lahore, for a contract sum of RM340 million.

Bina Puri has also completed three major highways in India, including the Vijayawada-Eluru Expressway and Tada-Nellore Expressway in Andhra Pradesh and Chittorgarh-Mangalwar Highway in Rajasthan.

It also has a power generating business in Indonesia to further diversify its income base, with five power plants with capacity to generate 2MW per plant.

“We are also exploring the opportunity to generate hydroelectricity in Indonesia. There’s a lot of potential in the power generating business there as only 50% of the country is connected to the power grid,” Tee said.

For its nine months ended September 2011, Bina Puri posted a lower net profit of RM7.57 million or 6.95 sen per share compared with RM8.13 million or 7.76 sen per share in the previous corresponding period. However, revenue was higher at RM888.3 million compared with RM860.9 million before.

Bina Puri closed down 1.5 sen to 92 sen yesterday.


This article appeared in The Edge Financial Daily, January 17, 2012.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Bina Puri confirms Pakistan highway deal

KUALA LUMPUR: Bina Puri Holdings Bhd yesterday confirmed The Edge Financial Daily’s page one report that it is in the process of finalising a deal to upgrade and operate a highway in Pakistan.

In response to the report, Bina Puri, in a filing with Bursa Malaysia yesterday, said it had received a letter of intent dated Nov 11, 2011 from the National Highway Authority in Islamabad, Pakistan.

The letter of intent was for the conversion of the existing four-lane Karachi-Hyderabad super highway into a six-lane motorway, Motorway 9, (M-9) on a build, operate and transfer basis, Bina Puri said.

The M-9 highway links Hyderabad to Karachi, Pakistan’s largest city and seaport.

“We are currently negotiating the financial and legal aspects of the concession agreement with them. We will make further announcement on the progress of the concession,” the company added.

Bina Puri shares gained 5% or 4.5 sen to 94.5 sen yesterday on the back of The Edge Financial Daily report. This was the counter’s steepest gain since mid-October.

Trading volume surged to 4.74 million shares, 15 times higher than Wednesday’s 315,300 shares.

Nevertheless, Bina Puri’s stock price is still about 40.18% lower year-on-year, having experience an extended decline since recording RM1.58 on Jan 12, 2011.

Quoting sources, The Edge Financial Daily reported yesterday that Bina Puri will have a 28-year concession to operate the highway, of which three years will involve upgrading the highway to six lanes at a cost of RM600 million.

This will be Bina Puri’s second highway concession. The construction company has a 50% stake in the concessionaire for the Kuala Lumpur-Kuala Selangor Expressway (Latar).

No stranger to the Indian subcontinent, Bina Puri has completed three major highways in India — the Vijayawada-Eluru Expressway and Tada-Nellore Expressway in Andhra Pradesh, and Chittorgarh-Mangalawar Highway in Rajasthan.

In Pakistan, Bina Puri completed the construction of 174 villas in Lahore last September as part of the Defence Housing Authority’s Phase 6 of the Defence Raya Golf Resort.


This article appeared in The Edge Financial Daily, January 13, 2012.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Bina Puri extends gains on confirming talks for Pakistan highway deal

KUALA LUMPUR (Jan 13): BINA PURI HOLDINGS BHD [] shares extended their gains in early trade on Friday after the company said it was negotiating the financial and legal aspects of a privatisation concession agreement with the National Highway Authority in Islamabad, Pakistan.

At 9.05am, Bina Puri rose 2.5 sen to 97 sen with 102,000 shares traded.

In confirming The Edge Financial Daily report on Thursday entitled “Bina Puri to bag Pakistan highway deal”, the company said that it had received the letter of intent dated Nov 11, 2011 from the highway authority.

It said the letter of intent was for the conversion of existing four-lane Karachi-Hyderabad super highway into a six-lane motorway (M-9) on build, operate and transfer (BOT) basis.

“We are currently negotiating the financial and legal aspects of the concession agreement with them. We will make further announcement on the progress of the concession,” it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Stocks to watch: Faber Group, Bumi Armada, TAS, Tebrau Teguh

KUALA LUMPUR (Jan 13): Stocks which could see trading interest on Friday include FABER GROUP BHD [], Bumi Armada Bhd, TAS Offshore Bhd and TEBRAU TEGUH BHD [].

The latest suit which Faber’s subsidiary Faber Ltd Liability Company is facing is from a sub-contractor, Sweet Home Technical Works Ltd Liability Company, for services provided for housing projects in Abu Dhabi.

Faber said the statement of claim dated Jan 10 was for AED13.12 million (RM11.21 million), which Faber LLC is disputing.

Meanwhile, UOB Kay Hian Malaysia research had initiated coverage on Bumi Armada with a sell and sum-of-parts target price of RM3.16 due to weaker outlook.

“Despite the promising macro outlook for floating production storage and offloading (FPSO) platforms within the region, Bumi Armada remains one of the most expensive stocks within the oil & gas services sector.

“Minimal exposure in Malaysia, limited lifespan on FPSOs, concentrated revenue stream on a singular asset, exposure to risky markets/counter parties and coupled with a short operating track record are inherent risks the market should not ignore,” said UOB Kay Hian Research.

On an upbeat note, TAS Offshore’s earnings continued to improve, with net profit of RM2.227 million in the second quarter ended Nov 30, 2011 compared with net loss of RM184,000 a year ago, boosted by sale of its tugboats under CONSTRUCTION []. Its revenue was 27.7% higher at RM31.57 million compared with RM24.72 million a year ago.

TAS’ second quarter net profit of RM2.227 million was higher by 75.3% compared with RM1.27 million in the first quarter while its revenue rose 79% or RM13.91 million from RM17.67 million.

Interestingly, Tebrau Teguh could stand to report a gain of RM16.67 million from the sale of two parcels of commercial land in Plentong, Johor.

It is selling the parcels of land for a total of RM28.27 million, which RM16.67 million or 143.7% above the net book value of RM11.60 million as at Dec 31, 2010. The company said the RM28.27 million was based on a valuation report by Messrs. Raine Horne International Zaki + Partners dated June 17, 2011.

“The total net book value as per audited financial statements for the year ended Dec 31, 2010 is RM11.60 million,” it said.

BINA PURI HOLDINGS BHD [] is negotiating the financial and legal aspects of a privatisation concession agreement with the National Highway Authority in Islamabad, Pakistan. Bina Puri said had received the letter of intent dated Nov 11, 2011 from the highway authority.

SUPERMAX CORPORATION BHD []’s 340.07 million new bonus shares will go ex on Jan 26. The company said the shares were issued on a one-for-one basis. The entitlement date is Jan 30.

CIMB Group says its discussions with San Miguel Corp to possibly acquire a stake in Bank of Commerce in the Philippines, was still on-going. It expected to conclude the negotiations by the first quarter of 2012.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Bina Puri confirms talks with Pakistan over highway privatisation deal

KUALA LUMPUR (Jan 12): BINA PURI HOLDINGS BHD [] is negotiating the financial and legal aspects of a privatisation concession agreement with the National Highway Authority in Islamabad, Pakistan.

In confirming The Edge Financial Daily report on Thursday entitled “Bina Puri to bag Pakistan highway deal”, it confirmed that it had received the letter of intent dated Nov 11, 2011 from the highway authority.

It said the letter of intent was for the conversion of existing four-lane Karachi-Hyderabad super highway into a six-lane motorway (M-9) on build, operate and transfer (BOT) basis.

“We are currently negotiating the financial and legal aspects of the concession agreement with them. We will make further announcement on the progress of the concession,” it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Bina Puri to bag Pakistan highway deal?

PETALING JAYA: Bina Puri Holdings Bhd is close to securing the privatisation concession for the Motorway 9 (M-9) highway in Pakistan sources told The Edge Financial Daily. The M-9 links Hyderabad to Karachi, the country’s largest city and seaport.

It is understood that Bina Puri has already received the letter of intent (LoI) from the National Highway Authority of Pakistan but is still negotiating the finer points of the contract.

According to the source, the construction firm will have a 28-year concession to operate the highway, three years of which will entail Bina Puri upgrading the M-9 from four lanes to six lanes, at a cost of some RM600 million.

“The LoI was given sometime late last year. Since then there have been negotiations between the Pakistani officials and Bina Puri. It should be concluded soon,” the source, who is familiar with the matter, said.

The M-9 is known as a superhighway, and is among the most vibrant highways in Pakistan.

It is learnt that the national Highway Authority of Pakistan had called for expressions of interest in May last year, in an international tender. It is not known who the other bidders were.

Bina Puri has a 99.9%-owned unit, Bina Puri Pakistan (Private) Ltd, but whether this is the company that has bagged the job is unclear.

Pakistan is not unfamiliar terrain for Bina Puri. In September last year, the company completed the construction of 174 villas called Phase 6, Defence Raya Golf Resort, Defence Housing Authority, in Lahore, the country’s second largest city. The contract was valued at RM194 million.

In 2010, it completed construction of the Nippon Paint Factory at Lillani Kasor, Lahore, for a contract sum of RM340 million.

Indeed, Bina Puri has been fairly active in the Indian subcontinent, having completed three major highways in India, including the Vijayawada-Eluru Expressway and Tada-Nellore Expressway in Andhra Pradesh and Chittorgarh-Mangalawar Highway in Rajasthan.

The low-profile company has a small market capitalisation of just RM110 million, but a large order book of RM2.7 billion as at end-November 2011. More noteworthy is the fact that Bina Puri is quietly shaping up as an infrastructure player with an international presence.

Established some 35 years ago as a local construction outfit, Bina Puri has since branched overseas and diversified into concessions to boost its income. Other than Pakistan and India, Bina Puri also has a presence in China, Brunei, the United Arab Emirates, Nepal and Thailand among others.

In 2010, the company secured RM2.59 billion worth of projects, compared with RM1.56 billion in 2009. Of that amount, 93% were overseas contracts.

If Bina Puri bags the Pakistan contract, it will be its second highway concession after the KL-Kuala Selangor Expressway (Latar), in which the company has a 50% stake in the concessionaire, in this case KL-Kuala Selangor Expressway Bhd.

Opened mid last year, the 33km toll expressway, valued at RM958 million, spans from the north of Templer’s Park, Rawang, to Assam Jawa in Kuala Selangor.

In 2010, Bina Puri also diversified into the power business in Indonesia when it procured three power plants of 2 MW capacity each, in Tobali, Mentok and Bengkalis.

Nevertheless, despite its growing presence in many countries and its large order book, Bina Puri’s margins have been thin. For the financial year ended Dec 31, 2010, the company registered record revenue of RM1.23 billion and net profit of RM10.6 million, its highest since 1995. Earnings per share (EPS) came in at 10.09 sen.

For its nine months ended September 2011 though, Bina Puri posted lower net profit of RM7.57 million on the back of RM888.34 million in revenue. EPS for the nine-month period stood at 6.95 sen.

In contrast, for the corresponding period a year ago, net profit was higher at RM8.13 million, from RM860.9 million sales while EPS stood at 7.76 sen.

Bina Puri’s shares closed 0.5 sen lower at 90 sen yesterday, with 315,300 shares traded. Over the past year, the stock has traded between a low of 85 sen and a high of RM1.65.

The stock is also trading below its net assets per share of RM1.07 as at Sept 30, 2011.

In November 2011, the company undertook the placement of 9.6 million new shares at RM1 per share.


This article appeared in The Edge Financial Daily, January 12, 2012.




Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Bina Puri up on possible Pakistan highway concession

KUALA LUMPUR (Jan 12): BINA PURI HOLDINGS BHD [] shares were up in early trade on Thursday as investors turned positive on the stock on a report that the company was close to securing a possible 28-year highway concession in Pakistan.

At 10.30am, Bina Puri's shares were up seven sen to 97 sen with 2.69 million shares traded.

The Edge Financial Daily reported on Thursday that the Bina Puri was close to securing a 28-year privatisation concession for a highway in Pakistan costing some RM600 million.

It was understood that the group had already received a letter of intent from the National Highway Authority of Pakistan but were still negotiating finer points to the contract.

For more on Bina Puri, read today’s edition of The Edge Financial Daily.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Bina Puri rises on Pakistan project news

Bina Puri Holdings Bhd, a Malaysian builder, gained the most in more than three months after the Edge Financial Daily reported that the company was close to securing a highway project in Pakistan.

The stock advanced 5.6 percent to 95 sen at 9:04 a.m. local time in Kuala Lumpur trading, set for the steepest increase since Oct. 7. -- Bloomberg



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

HDBSVR sees KLCI trading in narrow range, key hurdle at 1,530

KUALA LUMPUR (Jan 12): Hwang DBS Vickers Research said the FBM KLCI will probably move sideways inside a narrow trading range ahead due to a dearth of fresh market leads on Thursday.

It said that on the chart, the resistance threshold of 1,530 remains a key hurdle for the bellwether to clear.

On Wall Street, key U.S. equity indices ended between -0.1% and +0.3% as buying interest (especially in banking and TECHNOLOGY [] stocks) offset the lingering Euro Zone sovereign debt concerns.

In terms of local corporate developments, HDBSVR said there could be interest in: (a) OSK Holdings and RHB Capital, after both companies said they have submitted an application to Bank Negara Malaysia to seek approvals in relation to a possible merger of their businesses; and (b) Bina Puri Holdings, in response to a media report saying that it is close to securing the privatisation concession for a highway in Pakistan.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Bina Puri gains on share placement pricing

Bina Puri Holdings Bhd, a Malaysian builder, rose in Kuala Lumpur trading after pricing placement shares at RM1 each, a premium to the company’s last closing price of 87.5 sen yesterday.

The stock gained 1.1 percent to 88.5 sen at 9:08 a.m. local time, set for its highest close since Dec. 29. -- Bloomberg



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Binapuri Norwest offers Laman Vila in Segambut

KUALA LUMPUR: Contractor turned developer Binapuri Holdings Bhd is developing a 3.34-acre (1.4ha) low density residential enclave with a gross development value (GDV) of RM102 million in Bukit Prima Pelangi, Segambut in Kuala Lumpur.

The freehold development dubbed Laman Vila is a 50:50 joint venture with Norwest Holdings Sdn Bhd via JV company Binapuri Norwest Sdn Bhd. It marks Norwest Holdings’ first foray in development. A special preview of the project for invited guests was held on Dec 21.

Binapuri Group managing director Tan Sri Tee Hock Seng foresees a positive take-up once the project is officially launched in late January 2012.

“The show houses will be ready by mid-2012. We have already started earthworks on the site early in December and aim to complete the project by 2013,” he added.

Aziz Bahaman, group executive chairman of Norwest, told The Edge Financial Daily that despite the current global economic situation, there is still a market for landed upscale residential development in Klang Valley.

He said the target market for Laman Vila is upgraders, people who are buying for their own stay or for their children, as well as those who are currently living in the vicinity of Mont’Kiara who are looking to move from condos to landed property.

The low density development will feature 22 units of garden villas of three to four storeys and a block of low-rise condo villas which will house eight units (two of which are duplex penthouses). Prices start from RM2.5 million while sizes range from 3,446 sq ft to 6,133 sq ft. The four-storey garden villas will each have its own lift.

In addition to security features such as round-the-clock surveillance, intercom and panic button system, perimeter fencing and 41 CCTVs within the compound, Laman Vila will have its own clubhouse with facilities such as a swimming pool, sauna, barbecue area, playground and gym.

The maintenance fee for each unit is RM1,000 per month. The developer has also applied for a 21-year contract and licence for the feed-in tariff (FiT) system for the solar power system at Laman Vila.

“By fitting in the solar photovoltaic power system which costs RM3 million and selling the energy produced to Tenaga Nasional [Bhd], we hope to ease the burden of maintenance fees for the residences of Laman Vila in the long term,” explained Tee.

The developer is currently offering a developer interest bearing scheme in addition to a 3% rebate on the first 10% downpayment.

On possible JV prospects between Norwest and Binapuri in the near future, both said they are keen to continue working together and are searching for more landbank in the Klang Valley for residential development.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

PJI Holdings shares edge up on securing jobs at KLIA2

KUALA LUMPUR (Dec 1): PJI HOLDINGS BHD []’s shares rose in early trade on Thursday after its unit secured two contracts worth RM59.64 million at the KLIA2 involving the low voltage system for several locations at the KLIA2.

At 9.15am, PJI was up two sen to 17.5 sen with 8.18 million shares done.

Its unit P.J. Indah Sdn Bhd had accepted the letter of award from BINA PURI HOLDINGS BHD [] to formalise the sub-contract valued at RM25.16 million.

P.J. Indah had also accepted a RM34.64 million contract from UEM CONSTRUCTION [] Sdn Bhd for the design, supply and maintenance of the low voltage system, uninterruptible power supply and lightning protection system at KLIA2.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

PJI Holdings secures RM59.64m contracts at KLIA2

KUALA LUMPUR (Nov 30): PJI HOLDINGS BHD []’s unit has secured two contracts worth RM59.64 million at the KLIA2 involving the low voltage system for several locations at the KLIA2.

It said on Wednesday its unit P.J. Indah Sdn Bhd had accepted the letter of award from BINA PURI HOLDINGS BHD [] to formalise the sub-contract valued at RM25.16 million.

The contract included the supplying, installation and maintenance of the low voltage system for the skybridge (sector 4), contact pier (sector 5), satellite building (sector 6) and contact pier (Sector 7) of KLIA2.

“The duration of the sub-contract will be for a period of 427 days and were deemed to have commenced on Oct1, 2011,” it said.

In a separate statement, it said P.J. Indah had also accepted a RM34.64 million contract from UEM CONSTRUCTION [] Sdn Bhd.

It said the contract was for the design, supply and maintenance of the low voltage system, uninterruptible power supply and lightning protection system at KLIA2.

PJI said the duration of the second sub-contract was for eight months and was expected to be complete by April 1, 2012.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Bina Puri grows 9-month revenue to RM888m

Bina Puri Holdings Bhd posted a higher pre-tax profit of RM13.2 million for the nine months ended Sept 30, 2011, from RM11.2 million in the same period last year.

Its revenue increased to RM888.3 million compared with RM860.9 million in the corresponding period of 2011.

Bina Puri's group managing director, Tan Sri Tee Hock Seng said the company was pleased with the performance, with all its divisions recording increases in revenue.

"Notably, our construction division remains robust with new projects, secured year-to-date worth RM970 million and an outstanding order book of RM2.78 billion," Tee said in a statement today.

He added, with the projects in hand currently progressing smoothly, the company was cautiously optimistic of their performance for the rest of the year. -- Bernama



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.