KUALA LUMPUR: Fajarbaru Builder Group Bhd says that despite external challenges such as rising interest rates and economic uncertainties, the group is optimistic in its ability to seize opportunities within its key business areas.
The turnkey contractor and property developer remains focused on its core businesses of construction, property development, and plantation to sustain a stable revenue stream.
"Barring any unforeseen circumstances, we anticipate delivering a positive performance for the financial year ending June 30, 2025 (FY25)," the group stated in its financial results commentary.
The group's order book stands at a robust RM1.1 billion, providing a solid foundation for growth and ensuring earnings visibility in the coming years.
In the first quarter ended September 30, 2024 (Q1 FY25), Fajarbaru's net profit tripled year-on-year (y-o-y) to RM8.4 million, while revenue nearly doubled to RM136.4 million.
The increase in revenue was primarily driven by contributions from the property development and construction segments, while the property development division significantly boosted profitability.
The group said that the higher turnover this quarter was due to newly awarded projects that have begun contributing revenue, compared to the corresponding quarter last year when these projects were still in their early stages.
Earnings growth in the quarter was largely driven by the Vierra Residence @ Kinrara project, which showed incremental progress compared to the same period last year.
Sequentially, the group posted a 74 per cent increase in net profit from RM4.8 million in the previous quarter, despite a 12 per cent decline in revenue from RM155 million.
During Q1 FY25, Fajarbaru declared a dividend of one sen per share, double the amount proposed during the same period last year.
Looking ahead, the group is committed to executing ongoing construction projects efficiently and on schedule while focusing on the long-term strategic growth of its property development segment in Malaysia.
Last month, Fajarbaru announced its plan to divest a 44.44 per cent stake in an Australian property development company through a related party transaction.
The stake in BFB Project Pty Ltd will be sold to Mayfair International Investments Pty Ltd, which holds the remaining 55.56 per cent stake, for A$4.2 million (approximately RM12.11 million).
Year-to-date, Fajarbaru's shares have climbed 29.31 per cent, closing at 36 sen on Thursday (Nov 21).