Bina Puri Holdings Bhd (KL:BPURI) is doubling down on its Sarawak pivot as it emerges from a debt restructuring completed in September. CEO Marcus Goh Kee Lun told The Edge the group is “not out of the woods”, but “progressing well”.
Bina Puri shares rose 0.5 sen or 2.33% to 22 sen at Wednesday’s close, valuing the group at RM192.2 million.
What Is Bina Puri’s RM502.3 Million Sarawak Project Pipeline?
Bina Puri is engaged with projects worth RM502.3 million, mainly road, water supply and infrastructure works in Sarawak. Its outstanding order book stood at approximately RM259 million as of June 30.
Goh said the projects “reinforce our strategic positioning as a delivery partner of choice for East Malaysia’s government-backed infrastructure programme.”
The new direction has four parts:
- No more one-off, low-margin projects.
- Recurring income, such as building materials distribution in Sarawak.
- Higher-yielding work in energy, digital and water treatment.
- Acquisitions for expertise, evidenced by the purchase of Sarawak-based water treatment contractor Enforture (Sarawak) Sdn Bhd.
Goh spent about 20 years in China and says Beijing’s influence is growing as its Belt and Road Initiative gains acceptance. He wants Bina Puri to become a conduit of Chinese technology into the Asean market and attract more foreign direct investment into Malaysia.
Why Did Bina Puri’s Net Loss Widen to RM104 Million?
Revenue for the 23-month reporting period from July 1, 2024, to May 31, 2026, reached RM458.1 million. That is more than double the RM168.3 million booked in the 12 months up to June 30, 2024, reflecting stronger project activity.
The periods differ in length, so the revenue jump is not a like-for-like comparison.
The net loss widened to RM104 million from RM10.8 million. The group attributed this to a RM35.9 million impairment and RM55.2 million in finance costs, alongside legacy obligations addressed through the restructuring.
Bina Puri expects to return to profitability in FY2027, the financial year ending May 31, 2027.
How Is Bina Puri Repaying RM343.98 Million Owed to Creditors?
The group is undertaking a court-supervised scheme to resolve RM343.98 million owed to creditors as of June 30, 2025. Creditor support reached 87.6% as of June 30, 2026.
Instead of default interest, Bina Puri now has a seven-year repayment schedule plus a debt-to-equity conversion. Goh said this “has improved the group’s cash flow burden substantially.”
The restructuring has stabilised financial costs, which had been accruing at default rates.
Which Assets Is Bina Puri Selling?
Bina Puri has been disposing of non-cash-generating and loss-making subsidiaries, including BP Properties Sdn Bhd and Ascottville Development Sdn Bhd. It is also selling its Wisma Bina Puri headquarters, quarry and other assets.
In February, the group sold its entire 50% stake in KL-Kuala Selangor Expressway Bhd, which runs the Latar Expressway, to Arena Irama Sdn Bhd for RM77 million cash. It expects a one-off gain of about RM74.9 million against an original investment of RM30 million.
Who Controls Bina Puri and Who Is Leaving the Board?
Executive directors Datuk Matthew Tee Kai Woon and Ooi Kee Kah have resigned to pursue other interests. Tee, who is linked to the founding family, holds a 5.78% direct stake.
Group managing director Kevin Chai Chan Tong, who has led the Sarawak expansion since entering the company in 2023, is the largest shareholder with 16.78%. Goh said the board will be restructured, with new members added for the Borneo and international markets.
What Does Bina Puri’s RM192.2 Million Market Value Say About Its Debt?
At RM192.2 million, the group’s market value sits below the RM343.98 million owed to creditors as of June 30, 2025. The RM74.9 million one-off gain would offset about 72% of the RM104 million net loss, if it is realised as expected.
For shareholders, the test is whether the RM259 million order book shifts toward the recurring-income businesses Goh described. Investors comparing construction-linked filings can also use our AI Stock Analysis for Malaysians guide.
Key Takeaways
- Bina Puri has projects worth RM502.3 million and an order book of about RM259 million as of June 30.
- The net loss widened to RM104 million, with a return to profit targeted for FY2027 (ending May 31, 2027).
- Creditor support stands at 87.6%, with a seven-year repayment schedule replacing default interest.
- The Latar Expressway stake sale for RM77 million is expected to yield a one-off gain of about RM74.9 million.
This article is for general information only and is not financial advice. Always do your own research before making any decision on BPURI.
Frequently Asked Questions
Is Bina Puri still making a loss?
Yes, Bina Puri posted a net loss of RM104 million for the 23-month period from July 1, 2024, to May 31, 2026. The group expects to return to profitability in FY2027, the financial year ending May 31, 2027.
How much does Bina Puri owe its creditors?
Bina Puri is restructuring RM343.98 million owed to creditors as of June 30, 2025. Creditor support reached 87.6% as of June 30, 2026.
Who is the largest shareholder of Bina Puri?
Group managing director Kevin Chai Chan Tong is the largest shareholder with a 16.78% stake. Datuk Matthew Tee Kai Woon holds a direct stake of 5.78%.
How big is Bina Puri’s Sarawak project pipeline?
Bina Puri is engaged with projects worth RM502.3 million, mainly road, water supply and infrastructure works in Sarawak. Its outstanding order book was about RM259 million as of June 30.
Source: View Original Article — The content is based on the original publisher. Refer to the original content for accurate info. Contact us for any changes.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
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