KUALA LUMPUR (March 25): Construction company Binastra Corp Bhd (KL:BNASTRA) reported a 63.2% year-on-year jump in its fourth quarter net profit, as revenue surged 73.9% on higher construction activities and the commencement of 12 new projects during the financial year. The group also declared its first dividend in seven years.

"This segment (construction) is the main contributor to the group's overall revenue and profitability and is expected to continue to deliver positive results and improve the group's overall results moving forward," it said in its quarterly results bourse filing on Tuesday, indicating stronger performance ahead.

The group made a net profit of RM25.1 million for its fourth quarter ended Jan 31, 2025 (4QFY2025), up from RM15.38 million in 4QFY2024, as revenue, which was contributed almost entirely by its construction business under Binastra Builders Sdn Bhd, jumped to RM270.2 million from RM155.37 million.

For the full FY2025, Binastra made a net profit of RM90.26 million, more than double the RM40.77 million it made in FY2024, as revenue jumped to RM946.6 million from RM425.20 million. Earnings per share came to 10.44 sen.

It announced a three sen interim dividend per share to be paid on April 25, 2025. This came earlier than expected as the group had previously outlined plans to declare dividends in FY2026 and committed to a payout ratio of at least 30% of its annual net profit.

It last declared a dividend in March 2018, when it was known as Comintel Corporation Bhd. The group changed its name after the emergence of Datuk Jackson Tan Kak Seng as its major shareholder in December 2022.

“The group has 25 ongoing construction projects, with an outstanding order book of approximately RM3.6 billion, which will provide earnings visibility over the next four financial years," Binastra said on its prospects.

"The group will continue to pursue additional contracts to replenish and expand the construction order book, which is envisaged to sustain the future earnings of the group," it added.

Binastra shares closed five sen or 2.7% higher at RM1.88 on Tuesday, valuing the company at RM2.05 billion. The stock has gained RM1.08 over the past one year.