PETALING JAYA: Inta Bina Group Bhd
is likely to report quarterly net profit of between RM9.1mil and RM11.5mil for the first quarter of this year, analysts say.
Its results are slated to be released in May.
TA Research said this represents about 20% to 25% of its projections for Inta Bina this year and implies healthy year-on-year growth of about 29% to 62%, supported by robust progress billings.
The research house said the results will be largely driven by Inta’s record-high wins of new jobs totalling RM1.2bil last year and an unbilled order book currently standing at around RM1.7bil.
TA Research maintained its earnings estimates for Inta Bina this year.
It has a “buy” call with a target price of 87 sen premised on an unchanged 11 times earnings for this year.
The shares were trading at 45 sen at the time of writing.
At its current share price, Inta Bina offers a compelling dividend yield of 5.8%, based on its projected dividend payout of 2.5 sen a share this year, TA Research said.
The group does not have a formal dividend policy, but has maintained a consistent payout track record, averaging 37% over the past three years.
The research house said the anticipated 2.5 sen a share payout represents just 31% of its earnings per share forecast of 7.9 sen a share for this year, suggesting headroom for sustainable distributions.
Inta Bina is also actively exploring expansion into the southern region, with particular focus on Johor Baru.
According to TA Research, the move would capitalise on the thriving Johor property market following the establishment of the Johor-Singapore Special Economic Zone.
“Looking ahead, we believe Inta Bina is well on track to meet our new-job replenishment assumption of RM1bil for the remainder of this year.
“Öur channel checks indicate that the group’s tender book currently stands at around RM3bil.
“Assuming a success rate of about 25%, this could translate into contract wins of around RM750mil,” said TA Research.
The group acquired a 2.7-acre parcel in Bukit Jelutong last December and more recently entered into a agreement with Zikay Properties Sdn Bhd to buy developer Aliran Restu Sdn Bhd for RM5mil.
The acquisitions are part of Inta’s Bina broader strategy to expand into property development. It will focus on affordable housing offerings while leveraging internal construction capabilities to strengthen its profitability margins.
