BDB EYES HIGHER GEAR­ING LEVEL FOR MORE GROWTH

New Straits Times - - Business -

KUALA LUMPUR: Bina Daru­la­man Bhd (BDB) is look­ing to bring up its gear­ing level to 0.4-0.7 times for more growth af­ter post­ing un­in­ter­rupted prof­itabil­ity since its in­cor­po­ra­tion, said group manag­ing di­rec­tor Datuk Izham Yu­soff.

For more fund­ing, the Kedah-based prop­erty de­vel­oper is also con­sid­er­ing a sep­a­rate list­ing of its con­struc­tion or prop­erty divi­sion.

“Given the low gear­ing level, we may be able to in­crease our gear­ing for fu­ture land­bank­ing ex­er­cises, prop­erty devel­op­ment ac­tiv­i­ties, con­struc­tion works and meet­ing work­ing cap­i­tal re­quire- ments. We are look­ing into a po­ten­tial list­ing but we are not sure which sub­sidiary yet,” he said yesterday, adding that the plan was still at a pre­lim­i­nary stage.

The com­pany’s cash re­serves cur­rently stand at RM85 mil­lion.

BDB’s net profit in the 2016 fi­nan­cial year jumped 40 per cent to RM34 mil­lion from RM24.2 mil­lion a year ago.

Izham said BDB recorded sim­ple growth rates of eight per cent in rev­enue and 41 per cent in net profit over the last three years.

BDB’s to­tal as­sets sur­passed RM1 bil­lion and it also recorded an up­ward trend in to­tal div­i­dend pay­ment.

BDB paid out the high­est div­i­dend of RM13.7 mil­lion in the last fi­nan­cial year.

Its sub­sidiaries in the prop­erty divi­sion in­clude BDB Land Sdn Bhd, Kedah Hold­ings Sdn Bhd and Aman La­genda Sdn Bhd. BDB Land is in­volved in the devel­op­ment of town­ships in Kedah while the rest are in­volved in de­vel­op­ments out­side Kedah.

It was re­ported that BDB planned to launch devel­op­ment projects worth RM1.2 bil­lion this year.

Izham said BDB also aimed to keep its growth mo­men­tum go­ing by bid­ding for gov­ern­ment con­tracts on af­ford­able hous­ing.

PIC BY MO­HAMAD SHAHRIL BADRI SAALI

Bina Daru­la­man Bhd group manag­ing di­rec­tor Datuk Izham Yu­soff says the de­vel­oper is con­sid­er­ing a sep­a­rate list­ing of its con­struc­tion or prop­erty divi­sion.

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