Tuesday, September 10, 2013

Bina Puri - Datuk Seri Ong Tee Keat

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 sat 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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