Annual Report - Bina Puri

Review of Operations (Cont’d)OVERVIEWIn 2007, the Group registered a record revenue of RM607 millionand a net profit attributable to shareholders of the Company ofRM7.0 million, its highest since 1995. We trust we will achievebetter results in the coming years.Our growth path has become significantly international as we takehold of opportunities in fast growing markets for the constructionbusiness that are in the ASEAN region and in the Middle East. Wecurrently have on-going projects in Abu Dhabi, Brunei, Pakistan andThailand which contribute to more than half of our order books.To continually be competitive and relevant, we need to be good attechnological innovation, adaptable to changing market needs andto deliver quality works despite escalating raw material costs.Our commitment to building shareholders’ value, our experiencedoperations staff together with our long standing ties with suppliersand subcontractors are part of our core values and operations thathave contributed to Bina Puri’s success over the years.CONSTRUCTION DIVISIONIn 2007, we managed to increase our order book to RM2.0 billionfrom RM1.6 billion in 2006.The Malaysian Government through its Ninth Malaysia Plan (9MP)introduced several mega projects such as the Iskandar Malaysia,Northern Corridor Economic Region (NCER) and East CoastEconomic Region (ECER). These projects are expected to keepMalaysia’s construction sector busy for next five years. The localconstruction sector registered a growth of 4.6% after consecutivedeclines since 2003.Kolej Universiti Islam Selangor (KUIS), Bangi, Selangor.During the financial year under review, the challenges faced by BinaPuri were to sustain high energy prices and increases in buildingmaterial costs, i.e. steel bars and cement. The construction divisionrecorded a higher revenue of RM456.7 million in 2007 ascompared to RM404.0 million in 2006. Profit before tax reduced toRM1.5 million as compared to RM6.1 million recorded in 2006.The lower than expected profit before tax was mainly a result ofhigher energy and material costs.ON GOING PROJECTSWe will be completing within this year the construction of theState Administrative Centre, the new Dewan Undangan Negeri atPetrajaya, Kuching, Sarawak. The design of the 9 storey StateLegislative Assembly building has unique elements of Sarawak’sheritage with intelligent building automation, multimediacommunication facilities and environmental friendly features.NEW PROJECTS - MALAYSIAThe construction division is confident of securing more projectslisted under the 9th Malaysia Plan with more Federal and Stateprojects being rolled out in the next 4 years.Bina Puri with its experienced project managers and soundfundamentals will be able to benefit by securing medium to largescale projects.Dewan Undangan Negeri at Petrajaya, Kuching, Sarawak.14 BINA PURI HOLDINGS BHDAnnual Report 2007