PETALING JAYA: Binastra Corp Bhd’s earnings outlook received a boost following its latest contract win, which further solidified its position in the construction sector.
The RM250.4mil project, awarded by MYT DC3 Sdn Bhd, marked a significant addition to the company’s unbilled order book and reinforced its growth prospects.
TA Research noted that this was Binastra’s first construction contract secured for the financial year ending Jan 31, 2026 (FY26). With the new job win, the research house estimated the company’s unbilled order book at approximately RM3.7bil, equivalent to 8.7 times its FY24 revenue. This provided strong earnings visibility and underscored the company’s potential for sustained growth.
The project, located in Cyberjaya, Selangor, entailed the construction of a data centre facility. The scope of work included a six-storey data centre, a guard house, and a refuse room. Construction was scheduled to commence on Feb 26, 2025, with phased completion dates spanning from June 15, 2025 to Dec 15, 2025.
TA Research highlighted, "We gather that data centre construction projects typically yield lower net project margins of around 5.5% compared to residential development."
As a result, it anticipated that the contract would contribute an estimated RM13.8mil in net profit to Binastra’s bottom line for FY26. Despite the new contract win, the research firm made no changes to its earnings forecasts, as the job fell within its assumption of RM3.5bil in order book replenishment for FY26.
TA Research maintained its “buy” call on Binastra’s stock, stating, "We maintain our ‘buy’ call on the stock with an unchanged target price of RM2.25, premised on a price-to-earnings ratio of 18 times calendar year 2025 earnings.”
The research house’s optimism on Binastra was underpinned by several key factors, including its strong and enduring relationships with major clients, its strategic positioning as a key beneficiary of the property sector’s growth momentum, and its robust earnings visibility driven by a resilient and expanding order book.
With this latest contract win, Binastra continued to strengthen its foothold in the construction industry, particularly in high-value segments such as data centres. The company’s growing order book and established market presence positioned it well for sustained earnings growth in the coming years.
