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.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
3 days ago
- New Straits Times
Binastra building strong future with expanding project pipeline
KUALA LUMPUR: Binastra Corp Bhd is expected to achieve stronger earnings in the coming quarters as more projects progress along the S-curve, said RHB Research. The firm remains optimistic about the company's prospects, projecting a three-year compound annual growth rate of 132 per cent for its financial year 2025 (FY25) to FY28 earnings. "This is largely in tandem with its anticipated order book growth, backed by the expansion of its key clients beyond the Klang Valley," it said in a note. Binastra Corp has secured RM977 million in new jobs year-to-date for FY26, against the firm's internal job win target of RM4 billion (FY25 job replenishment of RM3.1 billion). "We envisage the remaining approximately RM3 billion that Binastra needs to secure (to hit the RM4 billion new job win target for FY26) to partly come from five mixed-development projects awarded by its key clients." Based on RHB Research's estimates, there could be another circa RM500 million in potential jobs on the remaining two plots of land at Jalan Kebun Teh. Exsim Development Bhd also has several other land parcels in Johor Bahru near New York Hotel and at Jalan Lumba Kuda, which could yield a cumulative gross development value of over RM3 billion, or a potential construction value exceeding RM1.5 billion, it said. Binastra Corp recorded a first quarter FY26 core profit of RM25.1 million, meeting 19 per cent of RHB Research's and the street's full-year projections. "No changes to our earnings estimates as we deem results to be in line with our expectations. Therefore, we maintain our 'buy' call on the stock, and our target price of RM2.64 remains," it added.
The Star
3 days ago
- The Star
Binastra records 43% revenue growth, order book at RM4.1bil in 1Q
KUALA LUMPUR: Binastra Corporation Bhd's revenue rose by 43 per cent to RM256.8 million in the first quarter ended April 30, 2025 (1Q FY2026), a 43 per cent increase year-on-year (y-o-y) compared to 1Q FY2025. Meanwhile, its net profit jumped by 38.9 per cent y-o-y to RM25.1 million, driven by strong contributions from the group's core construction segment. In a statement today, managing director Datuk Jackson Tan Kak Seng said the company is "operating at full capacity' as it pursues a record year, targeting RM4.0 billion in new contract wins for FY2026. Growth is expected to be driven by continued momentum in Klang Valley and rising opportunities in Johor Bahru, the construction group said, adding that its order book is currently at approximately RM4.1 billion, with 25 ongoing projects. During the quarter, Binastra also proposed the acquisition of LF Lansen, a provider of energy-efficient engineering solutions, including thermal energy storage and buffer tank systems. The move is expected to strengthen Binastra's environmental, social and corporate governance credentials and technical expertise, particularly in supporting data centre projects. "Additionally, we incorporated our renewable energy arm, Binastra Green Energy Sdn Bhd in February 2025, and aim to partner with a prominent local solar energy player. "We anticipate that this partnership will enable us to undertake full engineering, procurement, construction, and commissioning roles for renewable energy developments, paving the way for our long-term strategy to diversify into green infrastructure,' said Tan. - Bernama
New Straits Times
3 days ago
- New Straits Times
Binastra records 43pct revenue growth, order book at RM4.1bil in 1Q
KUALA LUMPUR: Binastra Corporation Bhd's revenue rose by 43 per cent to RM256.8 million in the first quarter ended April 30, 2025 (1Q FY2026), a 43 per cent increase year-on-year (y-o-y) compared to 1Q FY2025. Meanwhile, its net profit jumped by 38.9 per cent y-o-y to RM25.1 million, driven by strong contributions from the group's core construction segment. In a statement today, managing director Datuk Jackson Tan Kak Seng said the company is "operating at full capacity" as it pursues a record year, targeting RM4.0 billion in new contract wins for FY2026. Growth is expected to be driven by continued momentum in Klang Valley and rising opportunities in Johor Bahru, the construction group said, adding that its order book is currently at approximately RM4.1 billion, with 25 ongoing projects. During the quarter, Binastra also proposed the acquisition of LF Lansen, a provider of energy-efficient engineering solutions, including thermal energy storage and buffer tank systems. The move is expected to strengthen Binastra's environmental, social and corporate governance credentials and technical expertise, particularly in supporting data centre projects. "Additionally, we incorporated our renewable energy arm, Binastra Green Energy Sdn Bhd in February 2025, and aim to partner with a prominent local solar energy player. "We anticipate that this partnership will enable us to undertake full engineering, procurement, construction, and commissioning roles for renewable energy developments, paving the way for our long-term strategy to diversify into green infrastructure," said Tan.
