GEORGE TOWN (Oct 15): Bina Puri Holdings Bhd (KL:BPURI) is doubling down on Sarawak-focused projects to turn its fortunes around, as the group emerges from a court-supervised debt restructuring that was completed in September.

Bina Puri is currently engaged with projects worth RM502.3 million comprising road, water supply and infrastructure works mainly in Sarawak, said group chief executive officer Marcus Goh Kee Lun in an interview with The Edge.

As of June 30, its outstanding order book stood at approximately RM259 million.

"These projects reinforce our strategic positioning as a delivery partner of choice for East Malaysia's government-backed infrastructure programme," said Goh.

He said the group has been cleaning house over the last two years.

"The group is not out of the woods, but I would say we are progressing well. We are now looking to restructure the board, in line with the new direction of the group."

“We will no longer be focusing on one-off low-margin projects. Bina Puri will be actively looking for consistent and recurring-income businesses such as the distribution of building materials in Sarawak itself," he added.

Bina Puri's new direction comes amid several board changes, including the resignations of executive directors Datuk Matthew Tee Kai Woon and Ooi Kee Kah to pursue other interests. Tee, who is linked to Bina Puri's founding family, holds a 5.78% direct stake in the listed company.

Its group managing director Kevin Chai Chan Tong, who has led the Sarawak expansion since his entry into the company in 2023, is the largest shareholder with a 16.78% stake.

In Borneo, opportunities include higher-yielding projects in booming sectors such as energy, digital and water treatment, Goh said.

The group will also look into mergers and acquisitions to obtain expertise for future projects, evidenced by the acquisition of Sarawak-based water treatment contractor Enforture (Sarawak) Sdn Bhd, he said. New board members would also be introduced to strengthen decision-making for the Borneo and international markets, he added.

Goh, who spent about 20 years in China, noted Beijing's influence was getting stronger as its flagship Belt and Road Initiative is being welcomed. Consequently, more Chinese enterprises are eyeing forays abroad with the right local partners.

He hopes to transform Bina Puri into a conduit of Chinese technology into the Asean market, as well as attract more foreign direct investment into Malaysia.

The turnaround plan comes as the group's financial position has stabilised following a 23-month reporting period from July 1, 2024, to May 31, 2026.

According to audited figures published in its annual reports, revenue for the period was RM458.1 million, having more than doubled from RM168.3 million in the 12 months up to June, 30, 2024, reflecting stronger project activity.

Its net loss widened to RM104 million from RM10.8 million, which the group attributed to an impairment of RM35.9 million and finance costs of RM55.2 million, alongside legacy obligations addressed through the debt restructuring exercise.

Bina Puri expects to return to profitability in the current financial year ending May 31, 2027 (FY2027), Goh said.

"Our ongoing debt restructuring scheme is progressing well. We have received 87.6% creditor support as of June 30, 2026," said Goh.

Bina Puri is now undertaking a court-supervised scheme to resolve RM343.98 million owed to creditors as of June 30, 2025.

On the operational turnaround, Goh said the group's debt restructuring has stabilised its financial costs, which had been accruing at default rates.

"Instead of default interest, we now have a seven-year repayment schedule together with a debt-to-equity conversion, and this has improved the group's cash flow burden substantially," he said.

The group has also been disposing of non-cash-generating assets and loss-making subsidiaries, such as BP Properties Sdn Bhd and Ascottville Development Sdn Bhd.

In February, Bina Puri sold its entire 50% stake in KL-Kuala Selangor Expressway Bhd, which runs the Latar Expressway, to Arena Irama Sdn Bhd for RM77 million cash. It expects a one-off gain of about RM74.9 million against an original investment of RM30 million. The group is also in the process of selling its Wisma Bina Puri headquarters, quarry and other assets.

At Wednesday's close, Bina Puri shares were up 0.5 sen or 2.33% to 22 sen, valuing the group at RM192.2 million.

Read also:
Bina Puri extends financial year to 23 months amid restructuring
Bina Puri expanding into Sarawak water treatment sector through acquisition of Enforture Sarawak
Bina Puri's creditors approve debt restructuring scheme