PETALING JAYA: Construction outfit Binastra Corp Bhd
’s earnings visibility is supported by the company’s strong pipeline of projects in Johor and backed by an order book totaling RM4.5bil, analysts say.
Among the projects in Johor, analysts cited the Causewayz Square mixed-use development near the Johor-Singapore border.
TA Research noted that Binastra’s latest RM132mil contract from Exsim Lumba Kuda Sdn Bhd lifted year-to-date wins in its financial year ending Jan 31, 2026 (FY26) to RM1.5bil, or 37.5% of its replenishment target.
“Its order book now stands at RM4.5bil, equivalent to a robust 4.8 times FY25 revenue. On a conservative 9% net margin, we estimate this job will contribute around RM11.9mil to earnings over the project period,” the research house said.
The contract scope includes earthworks, piling, pile cap and diaphragm wall works for Causewayz Square, slated to begin on Sept 2, with completion within 16 months.
TA Research added that momentum should be sustained into the second half of the year, underpinned by a RM2.5bil pipeline concentrated in Johor.
“Key catalysts include upcoming launches in Taman Pelangi, Lumba Kuda and Kebun Teh by key clients such as Exsim Group and Maxim Global Bhd. This reinforces our conviction that Binastra is on track to deliver against our job win assumptions,” the research house said.
TA Research maintained its earnings forecasts and kept a “buy” call with a target price of RM2.53, based on a price-earnings multiple of 16 times.
RHB Research highlighted that Causewayz Square, which comprises four towers strategically located 600m from the Johor-Singapore Customs, Immigration and Quarantine complex and about 1km from the Bukit Chagar Rapid Transit System Link station has an estimated gross development value (GDV) of between RM2bil and RM3.5bil.
“Assuming that construction costs are around 50% of GDV, the potential overall job value could be RM1bil to RM1.8bil,” RHB Research said.
It said Binastra could secure the RM900mil to RM1.7bil in main building works for Causewayz Square if it delivers the recent job well.
RHB Research noted that the net profit margin for the RM132mil win would likely remain in the usual 8% to 10% range.
RHB Research reiterated a “buy” call on Binastra with a target price of RM2.64.
