The group is actively tendering for various projects, both locally and overseas and it hopes to secure more new projects by year end. - Matthew Tee

KUALA LUMPUR: Bina Puri Holdings Bhd, a construction outfit, has clinched a contract close to RM95mil from Toyo Engineering & Construction Sdn Bhd to do civil works in a steam cracker complex within the site of Petronas’ Refinery and Petrochemical Integrated Development (Rapid) project in Pengerang, Johor.

Group executive director Matthew Tee (pic) said this contract marked the company’s first successful tender to undertake a sizeable construction project in civil works for an oil and gas complex.

“It is testament to the group’s versatility and competency in using advanced construction techniques that meet the exacting requirements of the scope of work.

“The group is still actively tendering for various projects, both locally and overseas, and it hopes to secure more new projects before year end.”

With the latest award, the group’s unbuilt book order stands at RM2.72bil as at to date. The group has managed to secure RM933mil worth of projects so far this year. The construction will begin in January next year and is to be completed in 27 months.

Construction works include earthwork, foundation for equipment, fire proofing, installation for PC rack and road, floor (including chemical floor) and paving in Area B of the complex.

Bina Puri accepted a letter of award from Toyo Engineering & Construction on aug 12 for the civil works in progress Area B in the steam cracker complex within the Rapid project site.

The project is expected to contribute positively to the net asset and earnings of Bina Puri Group for the next financial year ending Dec 31.

Following this, TA Research has raised its earnings forecasts for Bina Puri Holdings Bhd for the financial years ending Dec 31, 2016, and 2017 by 3.6% and 2.8%, respectively.

The brokerage tweaked its share-price target for Bina Puri higher at 38 sen from 37 sen previously, based on an unchanged valuation of seven times the projected earnings per share for 2016.

It maintained its “hold” recommendation on Bina Puri, given the total potential return of 12.7%, including an expected dividend yield of 5.6%.