Bina Puri's listing of Indonesia unit to improve bottom-line contributions

KUALA LUMPUR (June 21): Construction and property firm Bina Puri Holdings Bhd, which will see its Indonesian subsidiary PT Megapower Makmur Tbk listed on the Indonesian stock exchange on July 5, hopes to increase the bottom line contribution of its power business by 20% per annum.

Its power business currently contributes about 1% to the company's revenue.

PT Megapower, which is 80% owned by Bina Puri, is involved in micro power generation. It supplies micro power service to PT Perusahaan Listrik Negara.

On Bina Puri's next move following the listing, its group executive director Datuk Matthew Tee said the group will consider further expansion plans for the power plant there in the near future.

As it is, Tee said, the construction sector is still the group's main revenue driver.

"Seeing that the property market is very unpredictable now, the construction sector is still the best industry to be in," said Tee.

The group's current unbilled order book stands at RM1.9 billion, which is expected to last till 2019. It also has a tender book of close to RM10 billion.

On another note, the group today witnessed the opening of a new interchange on its concessionaire highway KL-Kuala Selangor Expressway (LATAR), the Bandar Tasik Puteri (BTP) Interchange.

Tee says the interchange will help to improve traffic performance and will serve the 60,000 population of BTP. He added the group expects the highway to be profitable by 2020.

At 12.30pm, Bina Puri shares fell 0.5 sen or 1.18% to 42 sen, for a market value of RM111.88 million. — theedgemarkets.com

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