Annual Report - Bina Puri

Review Of Operations (Cont’d)
OVERVIEW
In 2008, Bina Puri remained focused and resilient in under
difficult conditions and downturn experienced throughout
the world by continuing to secure new projects while
completing a few landmark projects in our order book.
We were also recognized by our country’s Construction
Industry Board (“CIDB”) as Malaysia’s “Best International
Builder”.
Book Order by Countries
Brunei
26% Malaysia
44%
We believe new opportunities have started to open up
with the timely introduction of a number of fiscal and
financial initiatives undertaken by the Malaysian
Government to strengthen the domestic economy as
shown by the RM67 Billion stimulus package. With our
Bina Puri’s excellent performance and track record, we
are confident that we will be one of the major
beneficiaries to undertake some of the earmarked
projects, thereby adding value to our stakeholders.
Our commitment to building shareholders’ value, our
experienced operations staff together with our long
standing ties with suppliers and sub-contractors are part
of our core value.
CONSTRUCTION DIVISION
UAE
12%
Pakistan
3%
Thailand
15%
Our prospects remain vibrant, with a total book order of
RM2.7 billion which consists of projects in Malaysia and
overseas, namely United Arab Emirates, Brunei, Pakistan
and Thailand. In 2008, the Group secured RM 830 million
new projects with a higher percentage of it in Malaysia
(85% ) as compared to the previous year (43%).
Projects secured fromYear 2006 toYear 2008
RM Million
Domestic
2000
Overseas
Total Value
1,547
1500
1,417
1,306
Polyol Division
2%
Property Division
7%
Turnover by Division
Quarry & Construction
Materials
11%
Construction
Division
80%
1000
500
0
241
615
2006 2007 2008
In 2008, the Group registered a record revenue of
RM676.5 million and pre-tax profit of RM8.13 million.
Although revenue increased by eleven percent (11%), pretax
profit declined by 5%.
This was due to escalation of construction raw materials
which had spiraled upwards on average by more than 50%.
This had a major impact on the whole construction
industry and resulted in developers holding out on
launching their new projects while even certain
Government projects had to reduce their scope as the
higher costs had exceeded its initial budget. This
unpredictable trend only subsided towards the last
quarter of 2008.
802
710
121
830
Recognition and accolades have encouraged Bina Puri to
raise our standards further. As mentioned, we were proud
recipients of the CIDB International Achievement Award
for our projects in Thailand and the Innovative Award for
the Bangplee Project in Thailand.
The Construction Division will continue to be the core
driver of the Group as it accounts for 80% of the Group’s
revenue.With raw materials stabilizing, we anticipate that
this division will have a better year.
HIGHWAY CONCESSION
Our 50% associate, KL-Kuala Selangor Expressway Bhd,
(KLSEB), the concessionaire for KL-Kuala Selangor
Expressway (KLS Expressway), has finally started
construction of the RM958 million expressway after close
to 10 years of anticipation.
18 BINA PURI HOLDINGS BHD
Annual Report 2008