Latest news with #RM3.6bil
The Star
4 days ago
- Business
- The Star
Binastra doubles revenue and profit in FY25 on contract wins
PETALING JAYA: Construction company Binastra Corp Bhd believes it is well-prepared to sustain its growth momentum and build on the transformative progress achieved so far. Chairman Tan Sri Samshuri Arshad said the outlook for Malaysia's construction industry remains positive, supported by continued public infrastructure spending and a recovering private sector. 'We are optimistic that government-led development initiatives will continue to generate ample opportunities for construction players in the coming years. 'While we remain mindful of global economic uncertainties and potential headwinds, we are confident that our solid fundamentals and agile strategy will keep us on a strong growth trajectory,' he said in the company's annual report. For the financial year ended Jan 31, 2025 (FY25), Binastra's revenue stood at RM946.6mil, a 122.6% year-on-year (y-o-y) increase compared to RM425.2mil in FY24 – driven by strong project execution and robust contract wins. Cost of sales rose in tandem with the increase in revenue. Meanwhile, net profit also surged to RM90.3mil, marking a 121.3% y-o-y increase from RM40.8mil, underpinned by efficient cost control and higher project contributions. The substantial rise in revenue and profitability was mainly driven by accelerated progress of construction activities, improved operational efficiencies, and strategic expansion into new market segments. The group's order book reached a historic high of RM3.6bil, providing robust earnings visibility for the next few years. With a record order book in hand, Samshuri said Binastra is prioritising the timely and high-quality completion of its projects to reinforce its reputation and secure repeat business. 'At the same time, we will pursue selective new contracts that complement our strengths and enhance our portfolio. 'Building on our success in Sabah, we intend to seek further projects in other high-growth areas such as Johor Baru, where we have established a new branch.' Samshuri added that Binastra will continue to explore projects in emerging segments like data centres, renewable energy facilities and infrastructure. Separately, he said FY25 was a milestone year of strategic expansion for Binastra, as the group made significant headway in broadening its reach and capabilities. 'Notably, we secured our first-ever project in Sabah, marking the group's entry into East Malaysia. This landmark contract extends our footprint beyond Peninsular Malaysia and validates our ability to deliver in new markets.' This achievement not only boosted the group's order book, but also positioned Binastra as a truly national construction player, said Samshuri. 'We are proud to be part of Sabah's growth story and see this as the first of many opportunities in the region.' In line with the group's diversification strategy, he said the company also ventured into unconventional construction projects during the year. 'A key highlight was the award of a project to design and build a membrane bioreactor for a sewage treatment plant, valued at RM155mil. 'Undertaking this infrastructure project represents an important extension of our portfolio beyond typical building projects. 'It demonstrates Binastra's engineering expertise and adaptability to critical public-oriented works, while providing a new long-term revenue stream for the group.'
The Star
30-05-2025
- Business
- The Star
SimeProp bullish on 2025 after strong 1Q
PETALING JAYA: While keeping a positive outlook for 2025, Sime Darby Property Bhd (SimeProp) remains cautious towards the degree of worldwide volatility beyond this year, especially emanating from the trade tariff situation, and is concerned about its wider impact. Group managing director and chief executive Datuk Azmir Merican remarked that volatility is 'never a good situation', before saying that it is helpful to understand how finalised tariff decisions can affect all parties involved, since Malaysia has substantial business relations with the United States, China and Asean. 'That said, we are rather optimistic for 2025, but it is when we look towards 2026 and beyond, we wonder whether future launches and lending will be affected, not as a primary impact on our properties but as part of a secondary round of impact,' he told a virtual media briefing yesterday following the release of its first quarter of financial year 2025 (1Q25) results. He acknowledged that SimeProp, being a property developer, is highly dependent on the overall economy doing well, which in turn influences investor confidence. Nevertheless, Azmir reiterated the group's bright prospects for the near and medium term, especially throughout 2025. Despite recording a marginally lower net profit year-on-year (y-o-y) of RM118.4mil for 1Q25 as compared to the corresponding period a year ago, Azmir emphasised that 1Q24 was the group's strongest quarter thus far, and the result from 1Q25 was therefore encouraging. This was underpinned by the fact that net profit margin had improved from 12.6% to 13.6% y-o-y in 1Q25. He pointed out that 1Q25 profitability was supported by a turnaround in the investment and asset management segment, coupled with profit from compulsory land acquisition, which offset the lower segment results from the property development segment and leisure division. Having launched a total gross development value (GDV) of RM656.5mil in 1Q25, from a goal of RM4bil GDV to be put in place this year, Azmir said SimeProp will launch the remaining GDV of RM3.3bil across the industrial, residential and commercial segments, with respective shares of 30%, 59% and 11%. The group has a sales target of RM3.6bil for 2025. Of interest, industrial products contributed to half of the RM927.5mil sales figure achieved by the group in 1Q25, with residential high rise products contributing in total 27% of sales, while residential landed properties made up 16%. Commercial products, meanwhile, contributed to 7% of sales, driven by sustained demand across our maturing townships. Azmir observed that sales remained concentrated within central and Greater Klang Valley, with a notable increase in contribution of 20% from Negri Sembilan. Explaining the relatively larger share of sales contribution from the group's industrial segment, chief operating officer for township development Apollo Leong said in the second half of 2024, SimeProp launched nine phases of industrial properties, compared to only three phases of landed residential developments. 'The big jump in sales contribution by industrial properties is due to the timing of their recognition, although we do have a heavy pipeline of industrial properties as well,' he said. As such, Azmir maintained that residential properties would catch up to industrial products with regards to sales contribution, although with the group also focusing on industrial launches, he is expecting the latter segment to yield more than a 30% share in sales by end of 2025. Meanwhile, commenting on its Battersea Power Station (BPS) project, he said the take-up rate for the residential component of Phase 3B (Electric Boulevard) had increased to 74%, representing a 6% quarter-on-quarter growth, while the office leasing rate remained at 45%. He noted that footfall at BPS also grew a healthy 8% y-o-y in 1Q25, before remarking that since its opening in October 2022, the location has welcomed over 30 million visitors. 'More importantly, we have secured detailed planning approval and consent from Wandsworth Council for Phase 3C of BPS, comprising a mix of residential, retail, community and leisure development, with anticipated completion in 2029,' said Azmir. Elaborating on the group's strategy for BPS going forward, he said leasing enquiries for the office building has been strong, and rental rates have been encouraging. However, he said SimeProp is more keen to take in tenants for longer tenures, with the aim that they can commit for up to 10 years. 'Since we have leased out almost half the building, and because securing long tenancies remains our goal, we are now selective with our prospective tenants. 'We would prefer they commit for the long term, because then we can have an idea of how they can provide stabilised rental income for the group,' said Azmir. On the other hand, he said rental rates in the United Kingdom have shot up faster than expected, which has become a double-edged sword, because while this means there is a higher likelihood that tenants will be able to pay rental rates above the group's projections, it could also represent the fact that it may take a longer time for space to be taken up. For the rest of 2025, Azmir reported that the company is guiding for a gross profit margin of 20% to 25%, and a debt-to-equity ratio of less than 0.5 times by balancing active working capital and investments for future growth. It is also aiming to ensure optimal asset turnover by maintaining at most 10% of completed stocks. 'We see strong growth from the property development segment across 26 townships, driven by a well-diversified mix of residential, industrial and commercial products. 'Concurrently, our retail segment is also growing, supported by two wholly-owned malls, with a combined net lettable area (NLA) of approximately 608,000 sq ft and the upcoming KLGCC Mall with a NLA of about 240,000 sq ft,' he said. The group also has an existing land bank of about 11,400 acres with a GDV exceeding RM100bil to be unlocked, as it is also expanding into the high-growth data centre asset class with two hyperscale data centres at Elmina Business Park spanning across 126 acres, on top of a secured total lease value of RM7.6bil over a period of 20 years.
The Star
28-05-2025
- Business
- The Star
Sime Darby Property hits RM928mil in 1Q25 sales
Sime Darby Property group managing director Datuk Seri Azmir Merican. PETALING JAYA: Sime Darby Property Bhd recorded RM927.5mil in sales in the first quarter of this year (1Q25), achieving 26% of its full-year target of RM3.6bil for this year (FY25). In a statement, the group said sales were led by industrial products, contributing RM461.5mil (50%), followed by residential high-rise at RM246.3mil (27%), residential landed at RM127.9mil (14%) and commercial offerings at RM65.3mil (7%). 'New launches accounted for 61% (RM564.6mil) of total sales, driven primarily by industrial products from Elmina Business Park and Serenia Industrial Park, and supported by residential high-rise developments such as The Reya in Taman Melawati, Ophera in KLGCC Resort, and Kanopi Residences in the City of Elmina – reflecting strong demand for the group's latest offerings. 'Overall bookings as of May 18, 2025 stood at RM1.6bil.' For 1Q25, the group recorded revenue of RM871.6mil, operating profit of RM189.1mil, and pre-tax profit and profit after tax and minority interest of RM179.6mil and RM118.4 mil respectively. The group recorded margin improvements in gross profit at 32.5% (1.5% year-on-year), exceeding its guidance range of 20% – 25%, supported by disciplined cost management and contributions from a well-balanced product mix, with higher margin contributions from industrial, residential landed, and commercial products. 'Pre-tax profit remained stable at RM179.6mil, while pre-tax profit margin improved to 20.6% (2.1% y-o-y), primarily driven by stronger contributions from the investment and asset management (IAM) segment, which recorded a 61% year-on-year growth in pre-tax profit, led by the retail sub-segment.' Sime Darby Property group managing director and chief executive officer Datuk Seri Azmir Merican said FY25 has been off to a solid start, building on the group's record performance last year. 'This quarter's results were anchored by margin improvement, firm sales momentum, and rising contributions from our IAM segment,' he said in a statement. Meanwhile, the group's unbilled sales increased to its highest level since 2017 at RM3.8bil, securing clear earnings visibility for the next three years. 'Unsold gross development value for completed inventories remains low at RM227.2mil, while cash balances remain healthy at RM714.4mil.' Additionally, the company said its net gearing ratio of 27.9% as at March 31, 2025 remains well-capitalised for growth. 'In April 2025, the group's RM800mil sukuk issuance as part of its RM4.5bil programme was oversubscribed by 6.7 times with tightest credit spreads achieved despite prevailing market uncertainties, a clear testament to strong investor confidence in Sime Darby Property's long-term strategy and financial resilience.
The Star
28-05-2025
- Business
- The Star
Sime Darby Property records 927.5mil sales in 1Q25
Sime Darby Property group managing director Datuk Seri Azmir Merican PETALING JAYA: Sime Darby Property Bhd recorded RM927.5mil in sales in the first quarter ended March 31, 2025 (1Q25), achieving 26% of its full-year target of RM3.6bil for the financial year 2025 (FY25). In a statement, the group said sales were led by industrial products, contributing RM461.5mil (50%), followed by residential high-rise at RM246.3mil (27%), residential landed at RM127.9mil (14%) and commercial offerings at RM65.3mil (7%). 'New launches accounted for 61% (RM564.6mil) of total sales, driven primarily by industrial products from Elmina Business Park and Serenia Industrial Park, and supported by residential high-rise developments such as The Reya in Taman Melawati, Ophera in KLGCC Resort, and Kanopi Residences in the City of Elmina — reflecting strong demand for the group's latest offerings. 'Overall bookings as of May 18, 2025 stood at RM1.6bil.' For 1Q25, the group recorded revenue of RM871.6mil, operating profit of RM189.1mil, and profit before tax (PBT) and profit after tax and minority interest of RM179.6mil and RM118.4 mil respectively. The group recorded margin improvements in gross profit at 32.5% (1.5% year-on-year), exceeding its guidance range of 20% – 25%, supported by disciplined cost management and contributions from a well-balanced product mix, with higher margin contributions from industrial, residential landed, and commercial products. 'PBT remained stable at RM179.6mil, while PBT margin improved to 20.6% (2.1% year-on-year), primarily driven by stronger contributions from the investment and asset management (IAM) segment, which recorded a 61% year-on-year growth in PBT, led by the retail sub-segment.' Sime Darby Property group managing director and chief executive officer Datuk Seri Azmir Merican said FY25 has been off to a solid start, building on the group's record performance last year. 'This quarter's results were anchored by margin improvement, firm sales momentum, and rising contributions from our IAM segment,' he said in a statement. Meanwhile, the group's unbilled sales increased to its highest level since 2017 at RM3.8bil, securing clear earnings visibility for the next three years. 'Unsold gross development value for completed inventories remains low at RM227.2mil, while cash balances remain healthy at RM714.4mil.' Additionally, the company said its net gearing ratio of 27.9% as at March 31, 2025 remains well-capitalised for growth. 'In April 2025, the group's RM800mil sukuk issuance as part of its RM4.5bil programme was oversubscribed by 6.7 times with tightest credit spreads achieved despite prevailing market uncertainties, a clear testament to strong investor confidence in Sime Darby Property's long-term strategy and financial resilience. 'The sukuk proceeds from the issuance will be utilised to fund the group's long-term growth initiatives, including the build-up of its recurring income portfolio and assets under management, to maximise shareholder value as part of its evolution towards a real estate company as well as working capital requirement and other general corporate purposes.' Looking ahead, Azmir said the group is positioning itself for sustained performance across all business segments. 'As we enter the final year of our SHIFT25 strategy, our focus sharpens on executing with discipline, unlocking value across our portfolio, and strengthening recurring income to deliver sustainable growth,' he said.
