PETALING JAYA: Construction company Binastra Corp Bhd
is poised for robust growth next year, with TA Research maintaining a strong “buy” recommendation and a target price of RM2.85, implying 39% upside from its last traded price of RM2.05.
In a note to clients yesterday, the research house said: “We continue to like Binastra for its long-standing relationships with major clients that provide steady project flows; strategic positioning as a key beneficiary of the property and construction upcycle; and robust earnings visibility and growth prospects, supported by a resilient and expanding order book.”
The latest catalyst for the company came on Dec 15, when Binastra Atlantic Sdn Bhd, a consortium of Binastra Green Energy Sdn Bhd (51%) and Solarvest Holdings Berhad’s subsidiary Atlantic Blue Sdn Bhd (49%), clinched solar engineering, procurement, construction, and commissioning (EPCC) contracts from Maya Jaya Sdn Bhd under Malaysia’s Large Scale Solar 5 (LSS5) programme.
Valued at RM171.7mil in total, the deal translates to an effective RM87.6mil for Binastra, involving 56.5MW of solar photovoltaic capacity across sites in Kuala Langat, Selangor, and Sungai Lalang, Kedah.
Binastra handles funding and oversight, while Solarvest leads technical execution, with completion targeted for June 26, 2027.
Thr win bolsters the group’s performance for its financial year ending Jan 31, 2026 (FY26) , pushing year-to-date new job wins to about RM2.1bil and elevating its order book to RM5.2bil.
This represents a solid 3.3 times cover on TA Research’s FY26 revenue forecast of RM1.56bil for Binastra.
“Although current replenishment only accounts for 53% of our FY26 new order book replenishment assumption of RM4.0bil, we believe the group remains well on track to achieve the balance over the next month,” TA Research said.
A pipeline of RM2bil from clients like Exsim Group and Maxim Global Bhd, plus RM500mil in external tenders, fuels optimism, the research house added.
This marks Binastra’s second solar EPCC contract in FY26, highlighting its pivot from traditional high-rise construction to green energy.
Assuming a 5% net margin, TA Research said it reckons the projects could add RM4.4mil in net earnings for the group.
It also views the Solarvest partnership as a “key reference point and springboard for future solar EPCC tenders”, enhancing competitiveness for LSS6 bids.
Financially, the research house forecasts FY26 net profit for Binastra at RM133.8mil, up from RM90.3mil in FY25, with net cash position intact.
With its shares up 15.8% over 12 months versus the FBM KLCI’s 2.2%, Binastra’s trajectory looks positive, blending legacy strengths with sustainable innovation.
