COMMENTS ON BINA DARULAMAN BERHAD (6173)

BINA DARULAMAN BERHAD LAST 5 YEARS SHARE PRICE TREND

**analysis based on 2017 annual report.

1.       GENERAL INTRO: This counter core business is in property development. Other segments include civil engineering contractor, granite quarrying, and hotel, golf course, water theme park.

2.       NOTABLE POINTS:

a.    recently received new road maintenance contract worth 70million, could help company to turn around from losses to profitability. Also company working on clearing unsold units in the property development segment. Also recently opened water theme park, Fantasia Aquapark.

b.   recent losses due to lower sales of current property development projects. Some customers cancel booking due to stringent requirement for housing loan approval.

3.       IS THIS COUNTER A STRONG GROWTH STOCK? 

a.       REVENUE RANGE (million): ~ 251 million in 2017 annual report, this is a low revenue company.

b.      SHARE PRICE: share price is on decreasing trend, decreasing from peak of around RM1.20 to RM0.30 now.

c.       EARNING PER SHARE (EPS): been making losses in last 4 quarters.

d.      FUTURE POTENTIAL: depend on sales of inventory residential / commercial property units, upcoming new contracts and effective utilization of land banks for future developments.

e.      CAPITAL EXPENDITURE (CAPEX): spending on purchase of new fixed assets is quite low, 0.8 million, around 0.1% of total assets, appear company has no large scale expansion plan.

4.       IS THIS A STRONG DIVIDEND STOCK?     

a.       DIVIDEND YIELD: in 2017 report, dividend yield around 15%, 4.5cent per share, quite high based on current share price of around 30cents

b.      CONSISTENCY: from 2013-2017, there was consistent dividend range from 3.5 to 7 cents per share. However, in 2018, there has been no dividend announcement.

5.       OTHER INDICATORS:

a.       CASH FLOW: cash flow is positive, around 7.1 million

b.      SUPPORT BY INSTITUTIONAL INVESTORS: there is no presence of institutional investors at top 30 major shareholders list.

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