BINASTRA Kicks Off FY2026 with Robust Growth and Strategic Expansion!
Malaysian retail investors, get ready! BINASTRA CORPORATION BERHAD (BINASTRA) has just released its first-quarter results for the period ended 30 April 2025, and the numbers paint a picture of impressive growth and strategic foresight. The company has delivered a strong performance, particularly in its core construction segment, while also making significant strides towards future diversification and sustainability.
This report highlights not only a substantial increase in revenue and profit but also the strategic initiatives BINASTRA is undertaking to solidify its market position and ensure long-term value creation. Let’s dive into the key takeaways from this promising quarter.
Core Data Highlights: A Quarter of Strong Performance
BINASTRA’s financial performance for the first quarter of the financial year ending 31 January 2026 (1Q FY2026) demonstrates significant year-on-year improvement. Here’s a quick look at the headline figures compared to the corresponding quarter last year (1Q FY2025):
Current Quarter Ended 30.04.2025
- Revenue: RM256.85 million
- Gross Profit: RM34.39 million
- Profit Before Tax: RM32.98 million
- Profit for the Period: RM25.14 million
- Basic Earnings Per Share: 2.31 sen
Corresponding Quarter Ended 30.04.2024
- Revenue: RM179.63 million
- Gross Profit: RM26.18 million
- Profit Before Tax: RM23.92 million
- Profit for the Period: RM18.10 million
- Basic Earnings Per Share: 1.82 sen (restated)
As you can see, BINASTRA’s revenue surged by an impressive 43.0%, rising from RM179.63 million to RM256.85 million. This robust top-line growth translated directly into the bottom line, with Profit Before Tax (PBT) climbing 37.9% to RM32.98 million, and net profit increasing by 38.9% to RM25.14 million. Basic earnings per share (EPS) also saw a healthy increase from 1.82 sen to 2.31 sen.
Segmental Performance: Construction Leads the Charge
The stellar performance this quarter was predominantly driven by the Group’s Construction segment. Binastra Builders Sdn Bhd (BBSB), a wholly-owned subsidiary, continues to be the main engine of growth:
Construction Segment (1Q FY2026 vs. 1Q FY2025)
- Revenue: RM256.4 million (up from RM179.5 million)
- Profit Before Tax: RM31.6 million (up from RM24.3 million)
This significant increase in the Construction segment’s revenue and profitability is primarily attributed to a higher number of active projects compared to the same period last year. This segment is clearly the backbone of BINASTRA’s financial strength and is expected to continue delivering positive results.
The Investment Holding segment also showed improvement, reporting a profit before tax of RM1.42 million (compared to a loss of RM0.34 million in the corresponding quarter last year), primarily from increased interest income.
Financial Health and Cash Flow
While the profit and loss statement shows strong growth, it’s also important to look at the balance sheet and cash flow to understand the company’s financial health.
Statement of Financial Position (as at 30 April 2025 vs. 31 January 2025)
- Total Assets: Increased to RM812.47 million (from RM730.96 million)
- Total Equity: Decreased slightly to RM275.66 million (from RM282.45 million)
- Total Liabilities: Increased to RM536.81 million (from RM448.51 million)
- Net Assets Per Share: RM0.2528 (down from RM0.2592)
The slight decrease in total equity and net assets per share is primarily due to the significant dividend payment made during the quarter.
From a cash flow perspective, BINASTRA demonstrated improved operational efficiency:
| Cash Flow Item (Year To Date) | 30.04.2025 (RM’000) | 30.04.2024 (RM’000) |
|---|---|---|
| Net cash used in operating activities | (839) | (16,962) |
| Net cash used in investing activities | (4,042) | (3,001) |
| Net cash (used in)/from financing activities | (14,780) | 23,828 |
| Cash and cash equivalents at end | 51,880 | 29,982 |
While net cash *used* in operating activities significantly improved (from RM16.96 million used to only RM0.84 million used), the financing activities saw a shift from a net inflow last year to a net outflow this quarter. This is largely due to the substantial interim dividend payment of RM32.72 million made on 25 April 2025, reflecting the company’s commitment to shareholder returns. Despite this, the absolute cash and cash equivalents at the end of the period remained healthy at RM51.88 million, an increase from RM29.98 million in the corresponding period last year.
Risk and Prospect Analysis: Building for the Future
BINASTRA’s future prospects appear robust, backed by a strong order book and strategic initiatives to capitalize on prevailing industry trends.
Strong Order Book and New Wins
The Group currently has 25 ongoing construction projects, boasting an outstanding order book of approximately RM4.1 billion. This provides excellent earnings visibility for the next four financial years. Furthermore, during the quarter, BBSB secured three new Letters of Award valued at RM708.9 million for data center and main building works, signaling continued project pipeline growth.
The Malaysian construction sector is poised for sustained growth, driven by government infrastructure spending, increasing private sector investments, and the rising demand for sustainable and high-tech developments. This includes projects in transportation, water management, renewable energy, and industrial, residential, and commercial developments in key regions like Greater Klang Valley, Johor, and East Malaysia.
BINASTRA is strategically aligning itself with these trends, particularly the shift towards green building and smart infrastructure. The company’s increasing focus on Green RE- and GBI-certified projects not only meets regulatory requirements but also enhances asset value and environmental responsibility, aligning with Malaysia’s net-zero emissions target by 2050. The incorporation of Binastra Green Energy Sdn. Bhd. (BGE) and Binastra Atlantic Sdn. Bhd. (BASB) signals a clear intent to expand into renewable energy construction and commissioning works.
Looking ahead, BINASTRA aims to sustain its growth momentum by efficiently executing its existing order book and actively securing new high-value contracts. The Group is also strategically expanding its presence into new states like Sabah and Johor and exploring further opportunities in infrastructure and renewable energy. A steadfast commitment to ESG leadership and strengthening financial resilience through prudent cash flow management are also key priorities.
However, like any business, BINASTRA faces potential risks. The reliance on the construction segment means that the company’s performance can be affected by the cyclical nature of the construction industry, fluctuations in material costs, and labor availability. The report also noted a slight decline in revenue compared to the immediate preceding quarter due to projects approaching completion, highlighting the continuous need to replenish the order book. Furthermore, the Group carries significant contingent liabilities in the form of corporate guarantees, which, while common in the industry, represent potential obligations.
Summary and Investment Recommendations
BINASTRA has started its new financial year on a strong note, demonstrating robust growth in revenue and profitability, primarily fueled by its thriving construction segment. The substantial order book provides a clear runway for future earnings, while strategic diversification into renewable energy and geographical expansion signal a forward-looking approach.
The company’s commitment to shareholder returns is evident through its recent dividend payout. While the immediate quarter saw a decrease in cash from financing activities due to this dividend, the overall cash position remains healthy, and operating cash flow efficiency has improved significantly.
It is important to note that this blog post provides an analysis of the company’s financial report and does not constitute investment advice or recommendations to buy or sell securities. Investors should conduct their own due diligence and consult with a financial advisor before making any investment decisions.
Key points for investors to monitor going forward include:
- Order Book Replenishment: The ability to consistently secure new high-value contracts to maintain and grow the RM4.1 billion outstanding order book.
- Execution Efficiency: Successful and timely completion of ongoing projects, especially the newly secured data center and main building works.
- Diversification Progress: The tangible impact and contribution of new ventures in renewable energy and expansion into new states like Sabah and Johor.
- Cost Management: How the company navigates potential fluctuations in construction material costs and manages operational expenses.
- Market Conditions: The broader economic and regulatory environment in Malaysia, particularly as it pertains to infrastructure spending and private sector investment.
BINASTRA’s first quarter results certainly paint an encouraging picture of a company with strong operational momentum and a clear strategic vision. The move into green energy and broader geographical reach positions it well for future growth in Malaysia’s evolving construction landscape.
What are your thoughts on BINASTRA’s performance and its strategic initiatives? Do you think the company can maintain this growth momentum and successfully execute its expansion plans in the coming years? Share your insights and comments below!
