Monday, September 30, 2013

Bina Puri - 13-storey retail complex in Melawati

Bina Puri Holdings Bhd has secured a RM441mil contract from Sime Darby CapitaMalls Asia (Melawati Mall) Sdn Bhd to build the super-structure for a 13-storey retail complex in Melawati here.

The 24-month contract from Sime Darby CapitaMalls Asia would involve building an eight retail floors and a five-storey car park. With the latest contract, it had secured RM775.27mil projects in 2013. The group’s current unbuilt book order was RM1.91bil to date.

Officials from PR1MA say PR1MA has yet to approve any projects undertaken by property developer Gadang Holdings Bhd despite reports that the latter has been awarded a rm1.07 billion job by the government housing agency to build affordable housing Cyberjaya. Bina Puri is also believed to be interested in contributing to PR1MA but the executive says it has yet to receive any proposals from the company.

Meanwhile Gamuda Bhd director Datuk Ng Kee Leen’s son, Ng Keong Wee, has raised his stake in Bina Puri Holdings Bhd to 9.52%. The junior Ng, 28, is speculated to lead construction firm’s property business going forward. He bought another six million shares at RM1 apiece through a private placement.

It was reported that it had appointed Datuk Seri Ong Tee Keat as advisor. Will Ong become a magnet to attract new project for Bina Puri and be a catalyst to help turn around the rather lackluster company?

Market observers say it is unrealistic to expect Ong to have such an impact in the short term. However they suggest Bina Puri could leverage on Ong’s connections as a former transport minister as it seeks to get out if the mess at the delayed KLIA2 project.

For Bina Puri, it had been awarded contracts worth billions in the past five years. This has boosted its order book at an average of rm2.2 billion annually for the last five years.

However having large order book does not necessarily mean that the company’s earnings will grow in tandem with the value of the contract being awarded. It had in the past five years faced an earnings mismatch.

Ong’s appointment is not surprising given that the Tan and Tee families who founded Bina Puri are associated with the MCA.

The company’s largest shareholder is Jentera Jati Sdn Bhd which holds a 15.91% stake and is linked to Tan Sri Syed Mokhtar.

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