PETALING JAYA: Analysts say Exsim Hospitality Bhd’s latest job win falls within their assumptions for order book replenishment in the company’s financial year ending June 30 (FY26) and, as such, are not changing their earnings forecasts yet
The company, via its wholly owned subsidiary Exsim Concepto Sdn Bhd, was recently awarded a RM21.9mil interior fit-out contract by HAB Construction Sdn Bhd for serviced apartments units in a 50-storey mixed commercial development located along Jalan Sultan Ismail, Kuala Lumpur.
Exsim Concepto is principally involved in providing specialised fit-out services for hospitality property assets.
TA Research said, incorporating the latest win, Exsim’s year-to-date job wins rose to RM48.8mil, bringing its total order book to about RM200.1mil.
This translates to a healthy 1.4 times cover of Exsim Hospitality’s FY25 construction segment revenue, ensuring solid near-term earnings visibility, the research house said.
The work for the contract is scheduled for completion on Jan 2, 2028.
Assuming a profit before tax (PBT) margin of 15%, consistent with margins from similar projects within its existing order book pipeline, the contract is expected to contribute around RM3.3mil in PBT over the contract period, TA Research added.
The research house said the current job win rate represents only 24.4% of its FY26 order book replenishment assumptions for the company.
“Despite a more gradual-than-expected job-win rate, we believe Exsim remains well on track to meet expectations for the full year. Our positive stance is reinforced by a strong and sustainable order book replenishment outlook, with Exsim Hospitality well positioned as the preferred interior fit-out contractor within Exsim Group’s extensive development pipeline. “
TA Research said it was maintaining its earnings forecast and its “buy” call on Exsim Hospitality with an unchanged target price of 30 sen, based on 15 times price-earnings ratio for the design and fit-out segment and 18 times for the hospitality division.
“We continue to like Exsim Hospitality for its hybrid hospitality strategy that ensures earnings visibility and the potential future value unlock through hospitality real estate investment trusts.”
At last look, Exsim Hospitality was trading at 26 sen.
