Binastra Corp Bhd (KL), formerly known as Comintel Corp Bhd, has successfully secured a substantial RM235.5 million contract from Mightyprop Sdn Bhd. This contract involves the construction of a 39-story serviced apartment building in Petaling Jaya, Selangor, further solidifying Binastra’s reputation in the construction industry.
The contract, awarded to Binastra’s subsidiary, Binastra Builders Sdn Bhd, encompasses the full scope of work required for the development. This includes earthworks, piling, infrastructure, and the construction of the 39-story building, which will house 662 residential units. In addition to the apartment units, the project will feature a rooftop “Sky Garden,” various facilities situated above a four-level parking podium, business spaces, and an 11 kilovolt (kV) substation.
A Significant Boost to Binastra’s Order Book
This latest contract win significantly boosts Binastra Corp’s total new contracts secured in 2024, bringing the year-to-date total to an impressive RM1.6 billion. With this addition, the groupโs outstanding order book now stands at a robust RM2.5 billion as of September 2, 2024. This strong order book reflects Binastraโs growing presence and influence in the Malaysian construction sector.
The project, which is expected to be completed within 40 months from the commencement date, is anticipated to be a major contributor to the companyโs future revenue and profit streams. The commencement date will be officially announced following the architect’s instruction, marking the start of what is poised to be a landmark development in Petaling Jaya.
Reinforcing Binastra’s Market Position
Commenting on the contract win, Binastra Corp Bhd Managing Director Datuk Jackson Tan Kak Seng emphasized the importance of this achievement for the company. “Securing this contract underscores Binastraโs reputation as a trusted and capable partner in delivering complex construction projects,” he said. He further added that this success would not only strengthen the group’s position in the market but also drive sustainable growth moving forward.
Binastra Corp’s consistent performance in securing high-value contracts highlights its ability to deliver large-scale projects, ensuring continued growth and stability. This latest project aligns with the companyโs strategic goals of expanding its footprint in the construction industry, particularly in high-demand areas like Petaling Jaya.
Impressive Financial Performance
Binastra Corpโs recent financial performance has also been noteworthy. For the first quarter ended April 30, 2024 (1QFY2025), the company reported a remarkable surge in net profit, which more than tripled to RM18.1 million from RM5.73 million in the same period a year earlier. This significant increase in profitability was driven by a substantial rise in revenue, which more than doubled to RM179.63 million from RM59.29 million.
This robust financial performance underscores the effectiveness of Binastraโs strategic initiatives and its ability to capitalize on market opportunities. The companyโs focus on securing large, profitable contracts is clearly paying off, positioning it for continued success in the coming years.
Market Reaction and Future Outlook
The market has responded positively to Binastraโs recent achievements. At the closing bell on Monday, Binastra Corpโs share price gained eight sen or 6.35%, closing at RM1.34. This increase in share price reflects investor confidence in the companyโs future prospects, driven by its strong order book and impressive financial performance. With a market capitalization of RM1.46 billion, Binastra is well-positioned to continue its upward trajectory.
Looking ahead, Binastra Corp is expected to maintain its growth momentum, leveraging its expertise and reputation to secure additional high-value contracts. The companyโs strategic focus on the construction of large-scale residential and commercial projects, particularly in high-demand areas like Selangor, will likely contribute to sustained revenue growth and profitability.
Conclusion
Binastra Corp Bhd’s recent RM235.5 million contract win for the construction of a 39-story serviced apartment in Petaling Jaya marks a significant milestone for the company. This project, along with the companyโs strong financial performance and growing order book, positions Binastra as a leading player in the Malaysian construction industry. As the company continues to expand its portfolio of projects and capitalize on market opportunities, it is well on its way to achieving sustained growth and delivering value to its shareholders.
