BDB EYES HIGHER GEARING LEVEL FOR MORE GROWTH
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.
Bina Darulaman Bhd group managing director Datuk Izham Yusoff says the developer is considering a separate listing of its construction or property division.