Bina Darulaman plans to diversify its portfolio in 2023

by S BIRRUNTHA / pic TMR

KEDAH-BASED property developer, Bina Darulaman Bhd (BDB), will diversify its core business portfolio starting in 2023 to strengthen its financial position.

– pic source: bdb.com.my

BDB Group acting president and CEO Mohd Iskandar Dzulkarnain Ramli (picture) said the Covid-19 pandemic that hit in 2020 and 2021 has given the impression that BDB’s existing core business is in a fairly high-risk situation.

He added that the pandemic also showed that certain sectors remained resilient such as food production, energy and telecommunications.

“Therefore, the group will conduct a study to identify and determine the feasibility of making this business sector into BDB’s portfolio.

“This is to further enhance the resilience and maintain the company’s profits in the future. 

“We will start implementing the diversification of this portfolio if we get a mandate and the results of the study show that it is capable of generating new income,” he said during BDB’s media briefing on the second quarter ended June 30, 2022 (2Q22), financial performance and business overview in Kuala Lumpur today.

Mohd Iskandar noted that BDB is currently focusing on two core business portfolios namely real estate and engineering, construction and quarrying after restructuring due to the pandemic.

He said after the economic recovery and the transition to the endemic phase, BDB, however, returned to focus on diversifying its business portfolio.

“For the current financial year, BDB will focus more on real estate business with a current gross development value of RM1 billion,” he said.

BDB has recorded a profit before tax of RM1.13 million for the period of 2Q22, compared to a pretax loss of RM6 million in 1Q22.

Operating under business-as-usual conditions, the group’s 2Q22 revenue rose by 64% to RM51.62 million compared to RM31.46 million in the previous quarter. 

At the time of writing, shares in BDB were unchanged at 29 sen, giving it a market capitalisation of RM88.12 million.