BINA DARULAMAN BERHAD
(BDB 6173) is the only public-listed
government-linked company in Kedah which has been listed on the Main Board
Bursa Malaysia in February 2, 1996. BDB is 55% owned by Perbadanan Kemajuan
Negeri Kedah (the State investment board), while the balance is public
shareholding. Its core businesses are township and property development,
engineering and construction, road building and quarry, and tourism and
hospitality.
For the financial year 2013, the Group posted a net profit
of RM21.1 million on the back of annual revenue of RM281.0 million. Its net
tangible assets per share rose to RM3.64 from RM3.42 in 2012, while
shareholders’ funds increased to RM 265.2 million from RM 249.2 million a year
ago.
Over the same period, property development contributed 37%
to its total revenue, followed by roads and quarry at 36%, construction at 24%,
while golf and hotel recorded 2% and investment holding at one percent.
Let's have a quick look at Bina Darulaman (BDB 6173) share
price. It hit the 52 week high few days ago at RM2.34; will it continuous to
boost up? Will it challenging new high after another high? Will it another rising star?
NTA: RM3.71
P/E: 8.73
EPS: 26.57*
Dividend: RM0.07
* Calculated
based on the net profit of the trailing twelve months and latest number of
shares issued.
Based on the chart above, we can see that Bina Darulaman (BDB 6173)
currently trade at a discount price of RM2.32 compare to its NTA of RM3.71, BDB
declare a dividend per share of 7sen as compensation to its shareholders every year.
So, now we are going to discuss
the company recent activities.
1)
ACQUIRES
485HA IN KEDAH
Bina Darulaman announce that the Company
had, on 13 July 2014, entered into a HOA with PKNK, in which BDB and PKNK have
agreed to negotiate and reach an agreement with regard to the acquisition of several parcels of lands
owned by PKNK measuring approximately 1200 acres (485 hectares) in aggregate,
and in consequence thereto, to finalise the sale and purchase agreement of the
lands. The total purchase consideration for the proposed acquisition is
estimated to be approximately at RM204 million.
The proposed land acquisition comprises three
(3) parcels of leasehold land in Langkawi; a parcel of freehold land in Kubang
Pasu; five (5) parcels of freehold land in Kuala Muda; two (2) parcels of
freehold lands in Pokok Sena; and ten (10) parcels of freehold land in Kulim.
Based on the acquisition, Bina Darulaman (BDB) is strengthening its property activities in
Kedah and set to increase its total
landbank in the state to about 2700 acres (1,092ha). Property development,
which has been a major contributor to the Group’s revenue and earnings in the
past, is expected to remain bullish with the latest proposed land acquisition.
BDB group MD Datuk Izham Yusof said the acquisition was in
line with its plans to increase its landbank in Kedah as property development was a major contributor to group revenue and
earnings. Izham said the focus would be on residential projects.
2) PROPOSED
PAVEMENT WORK FOR THE ROAD PROJECT (Pekan Sg. Petani – Pekan Tawar)
Its wholly owned subsidiary; BINA &
KUARI (K) SDN BHD (BinaKuari) had received a Letter of Acceptance dated 22nd
May 2014 from IBRA HS SDN BHD (IBRA) for the purpose of pavement work for
federal road works (Laluan 67) from Pekan Sg. Petani, District of Kuala Muda to
Pekan Tawar, District of Baling, 14.1 (Package 1) –from Persimpangan Lencongan
Timur ke Persimpangan Laluan (K620), Kedah subject to the terms and conditions
as stipulated in the Letter of Acceptance.The LA was duly accepted by BinaKuari
on 7th July 2014 and endorsed by Board of Directors on the same day.
Information of the project:
i) The Sub-Contract amount is RM9,450,000.00.
ii) The Project shall be for 12 months from the date
of site possession to 28th May 2015.
Financial
effect:
The Project is
expected to contribute positively to the Group earnings for the financial years
ending 2014 and 2015.
3)
EYES
NEW OPPORTUNITIES WITH KL OFFICE OPENING
BDB eyeing new opportunities
to ensure its sustainable growth and future expansion with the opening of an
office in the capital city.Its Group Managing Director, Datuk Izham Yusoff,
said the opening of the new KL office was to heighten awareness of the Group’s existence, capabilities and exploring
untapped business opportunities at the national level.He said this at the
official opening of the new 6,000 sq. ft BDB Kuala Lumpur office located at
Wisma Glomac in Damansara Utama, which was officiated by Chief Minister of
Kedah, Datuk Seri Mukhriz Tun Mahathir.
Izham added that with BDB’s expansion outside Kedah,
it would enable the Group to be exposed
to a larger pool of opportunities in which it has a strong and established
track record in township and property development, engineering and construction,
road works and quarrying, as well as tourism and hospitality. With the
establishment of the Group’s office in Kuala Lumpur, Izham expressed optimism
of positive growth as plans are in the pipeline to jointly explore and
undertake several projects where the
Group has a wealth of experience, expertise and resources. More
importantly, like all businesses, we have to be constantly on the lookout for
new opportunities by leveraging on our strengths and to explore prospects for
sustainable growth as well as the creation and enhancement of shareholders’
values,” he explained.
4)
SALE
OF PROPERTIES.
More of more, BDB recent proposed activities will improve
the earnings of the Company for the financial year ending 31 December 2014 and
financial year 2015;
i) Sale of a piece of leasehold land in Bandar Alor
Setar for RM3.8 million.
ii) “en bloc ” sale of 323 units double storey
terrace houses situated at Taman Insaniah to PRIMA. The proposed “en bloc” sale
is expected to contribute positively to the Group earnings for the financial
years ending 2014 and 2015.
If you looking for the under value stock to invest,
you may look at this rising star Bina Darulaman (BDB 6173) since its price
still very cheap compare to its NTA of RM3.71 with P/E ratio 8.73
Target Price:
RM2.60
Happy trading
AsianBuffett
