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Bintai Kinden posts RM511,000 net profit in 2QFY22 versus net loss a year ago on M&E earnings

KUALA LUMPUR (Nov 25): Bintai Kinden Corp Bhd posted a net profit of RM511,000 in the second quarter ended Sept 30, 2021 (2QFY22) versus a net loss of RM2.85 million in the same quarter last year, driven by variation order from completed projects in the mechanical and electrical engineering (M&E) segment.

Its quarterly revenue grew 39.62% to RM17.14 million from RM12.28 million due to the gradual recovery from the negative impact of Covid-19 pandemic, while quarterly earnings per share (EPS) was booked at 0.13 sen versus a loss per share (LPS) of 0.9 sen previously.

“The group achieved profit before taxation of RM0.24 million in 2QFY22, an improvement from a loss before taxation of RM3 million recorded in 2QFY21, mainly derived from higher revenue growth,” Bintai Kinden explained in its filing with the local bourse on Thursday (Nov 25).

On a quarter-on-quarter basis, the group’s net profit in 2QFY22 dropped 66.09% from RM1.51 million in 1QFY22 due to the Movement Control Order, despite revenue rising by 39.77% from RM12.26 million in the immediate preceding quarter.

For the first half ended Sept 30, 2021 (1HFY22), Bintai Kinden registered RM2.02 million net profit or 0.53 sen EPS, compared with a net loss of RM4.16 million or 1.31 sen LPS a year ago.

The group’s 1HFY22 revenue increased by 13.24% to RM29.41 million from RM25.97 million.

Bintai Kinden’s deputy chief executive officer Azri Azerai said the group is optimistic of its future growth in the financial year ahead in tandem with the recovering local economy as more and more sectors reopen.

“Looking forward, the board will continue to focus on its core businesses which are in the M&E segment and endeavour to secure more opportunities and recurring projects in Malaysia which are able to contribute positively to the future earnings of the group.

“We remain positive on the prospects of the company supported by the gradual reopening of the local economy,” he said in a separate statement.

Recently at its extraordinary general meeting on Monday (Nov 22), Bintai Kinden obtained shareholders’ approval to acquire 100% equity interest in Johnson Medical International Sdn Bhd for RM50 million.

According to Bintai Kinden, the corporate exercise would allow the group to expand its existing customer base and widen its M&E service offerings to include the healthcare services industry in Malaysia.

“The acquisition would guarantee the group a cumulative net profit guarantee of RM9.1 million over two years which translates into average net profit of RM4.55 million for FY2022 [financial year ending March 31, 2022] and FY2023 and the acquisition is expected to be completed by the first half of FY2022,” it added.

Bintai Kinden’s shares had slipped 10 sen or 2.82% to 34 sen at midday break, valuing the group at RM131.75 million. It has fallen 39.47% from 57 sen since the start of this year.

http://www.theedgemarkets.com/article/bintai-kinden-posts-rm511000-net-profit-2qfy22-versus-net-loss-year-ago-me-earnings

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