Bintai Kinden Navigates Challenges: A Deep Dive into Q4 FY2025 Results
Greetings, fellow investors! Today, we’re dissecting the latest financial report from Bintai Kinden Corporation Berhad for the fourth quarter ended 31 March 2025. This report offers a crucial glimpse into the company’s performance, revealing a period of significant transition and strategic reclassification, alongside some notable financial shifts.
While the company recorded a substantial loss for the quarter and the full financial year, it’s essential to look beyond the headline numbers. The report highlights ongoing efforts towards a regularisation plan, a strategic reclassification of its business segments, and some potentially positive developments post-reporting period. Let’s break down the key figures and what they mean for this Malaysian player.
Core Data Highlights: A Mixed Financial Picture
Bintai Kinden’s latest financial figures present a complex narrative. The company’s revenue saw a slight dip in the fourth quarter, while the full financial year experienced a more significant contraction. More notably, both the quarter and the full year swung into a loss before taxation.
Quarterly Performance (Q4 FY2025 vs. Q4 FY2024)
Revenue
Q4 2025: RM7.52 million
Revenue
Q4 2024: RM7.63 million
Change: (1.5%) decrease
Profit/(Loss) Before Tax
Q4 2025: (RM31.55 million) Loss
Profit/(Loss) Before Tax
Q4 2024: RM10.85 million Profit
Change: Significant swing to loss
Net Profit/(Loss)
Q4 2025: (RM31.86 million) Loss
Net Profit/(Loss)
Q4 2024: RM8.74 million Profit
Change: Significant swing to loss
Basic Earnings/(Loss) per Share
Q4 2025: (2.52 sen) Loss
Basic Earnings/(Loss) per Share
Q4 2024: 0.98 sen Earnings
Change: Significant swing to loss
For the full financial year ended 31 March 2025, the picture is similar:
Full Financial Year Performance (FY2025 vs. FY2024)
Revenue
FY 2025: RM25.29 million
Revenue
FY 2024: RM36.79 million
Change: (31.3%) decrease
Profit/(Loss) Before Tax
FY 2025: (RM32.14 million) Loss
Profit/(Loss) Before Tax
FY 2024: RM5.18 million Profit
Change: Significant swing to loss
Net Profit/(Loss)
FY 2025: (RM32.48 million) Loss
Net Profit/(Loss)
FY 2024: RM3.23 million Profit
Change: Significant swing to loss
Basic Earnings/(Loss) per Share
FY 2025: (2.59 sen) Loss
Basic Earnings/(Loss) per Share
FY 2024: 0.43 sen Earnings
Change: Significant swing to loss
Segmental Performance Breakdown
A closer look at the business segments reveals the drivers behind these numbers:
- Mechanical and Electrical (M&E) Engineering: Revenue for the full year declined significantly by 71.9% to RM6.32 million. This was mainly due to previously terminated contracts and the reclassification of the construction segment. The M&E segment also saw a substantial increase in loss before tax, primarily driven by a RM17.57 million decline in gross profit due to a provision for back-charge from Tenaga Nasional Berhad (TNB) following contract terminations.
- Construction: This segment, now reclassified separately, reported a full-year revenue of RM4.72 million and a profit before tax of RM0.67 million. It demonstrated a healthy gross profit margin of 14.15% from its four ongoing projects, indicating potential as a growing contributor.
- Investment Holdings and Others: This segment contributed no revenue for the period. Its loss before tax increased significantly, primarily due to factors like a RM6.94 million increase from the granting of options to a director, a RM0.77 million increase in expected credit loss (ECL) expenses on trade, and a RM2.40 million reversal of profit guarantee.
- Concession Arrangements: Revenue remained stable at RM3.55 million for the quarter, consistent with the nature of the business. However, the segment’s loss before tax increased due to a RM5.90 million increase in expected credit loss on trade.
Financial Health and Cash Flow
As of 31 March 2025, Bintai Kinden’s financial position shows some shifts:
| Financial Metric | As at 31 March 2025 (RM’000) | As at 31 March 2024 (RM’000) |
|---|---|---|
| Total Assets | 226,007 | 247,814 |
| Total Equity | 73,201 | 80,216 |
| Total Liabilities | 152,806 | 167,598 |
| Net Asset Per Share (sen) | 8.68 | 9.30 |
Total borrowings decreased to RM128.83 million from RM141.57 million. Notably, current bank borrowings significantly reduced from RM141.33 million to RM25.07 million, while non-current bank borrowings saw a substantial increase to RM103.77 million, indicating a reclassification or restructuring of debt.
From a cash flow perspective, the company saw an improvement in cash used in operating activities, reducing from RM16.67 million in the previous year to RM3.15 million for the full financial year. More positively, the company generated a net increase in cash and cash equivalents of RM15.44 million for the year, a significant turnaround from the net decrease of RM3.85 million in the prior year. This was largely driven by net cash generated from financing activities, which increased to RM18.30 million.
Risks and Prospects: Navigating a Complex Landscape
The report also sheds light on the challenges and strategic outlook for Bintai Kinden. The auditors have issued a qualified opinion on the financial statements, highlighting key areas of concern:
- Accuracy and completeness of liabilities: Potential new liabilities arising from the termination of contracts with TNB, where the final account assessment and penalties are still uncertain.
- Recoverability of receivables and contract assets: Concerns regarding the concession grantor’s 12-month extension, long outstanding contract assets and trade receivables related to TNB undergoing final account assessment and legal claims, and other long outstanding trade and other receivables subject to legal claims.
These points underscore the importance of ongoing negotiations and legal proceedings for the company’s financial clarity.
Outlook and Strategic Focus
Despite the challenges, the company remains cautiously optimistic about the future. Malaysia’s economy is showing growth, particularly in the services and construction sectors. Bintai Kinden anticipates its essential business segments will remain strong. The company is actively working to mitigate the impact of volatile material prices and tariffs in the construction sector through timely project execution and continuous bidding for new projects.
The current order book stands at approximately RM4.50 million for M&E and a robust RM127.29 million for Construction. Additionally, M&E tenders worth an estimated RM181.82 million are currently under evaluation, awaiting awarding decisions. The Group plans to review and monitor the economic situation, exercise prudence in spending, and seek opportunities for business expansion.
Material Litigation and Subsequent Events
The report details several ongoing material litigations, including disputes with TNB regarding contract termination and bank guarantees, and other cases involving Bintai Energy Sdn. Bhd. for recovery of significant sums. These legal processes are complex and their outcomes remain uncertain, potentially impacting the company’s financial position.
However, a crucial positive development occurred subsequent to the reporting date: on 15 May 2025, Bintai Kinden received formal notification from TNB regarding the reinstatement of 3 out of 10 previously terminated contracts. This is a result of mutual agreement and ongoing negotiations, which could significantly alleviate some of the concerns raised by the auditors regarding potential liabilities and outstanding receivables. The company is awaiting the official global settlement letter from TNB.
Summary and
Bintai Kinden’s fourth-quarter and full-year results reflect a period of significant operational and financial challenges, marked by a swing to losses driven by provisions related to terminated contracts and increased expected credit losses. The auditor’s qualified opinion underscores the complexities surrounding liabilities and asset recoverability.
However, the report also highlights a company actively undergoing a regularisation plan, strategically reclassifying its business segments, and working to resolve key disputes. The re-emergence of the Construction segment with a healthy gross profit margin, coupled with a positive shift in cash flow from operating activities and overall cash and cash equivalents, suggests underlying operational efforts.
The most significant positive development is the reinstatement of three TNB contracts post-reporting period. This could be a pivotal step in resolving the financial uncertainties tied to the terminated contracts and potentially improving the company’s outlook. The large order book in construction and substantial tenders under evaluation also point to future revenue streams.
Key points to monitor for the company’s future:
- The final outcome and financial impact of the ongoing settlement negotiations with TNB, particularly the global settlement letter.
- The successful execution and profitability of the reclassified Construction segment and new projects.
- The resolution of other material litigations and their impact on the company’s financial position.
- The progress of the Proposed Regularisation Plan and its effect on the company’s financial stability and structure.
- Management’s ability to control operating expenses and manage expected credit losses across all segments.
It’s clear that Bintai Kinden is navigating a complex landscape. The past year presented significant headwinds, but strategic re-alignments and recent positive developments, particularly with TNB, offer a glimmer of hope. The focus now shifts to how effectively the company can execute its strategies, resolve outstanding issues, and leverage its order book to return to sustainable profitability.
What are your thoughts on Bintai Kinden’s path forward? Do you believe the reinstatement of the TNB contracts will be a game-changer for the company’s financial health? Share your perspectives in the comments below!
