Binastra set to gain from strong DC pipeline


PETALING JAYA: Binastra Corp Bhd’s new contract win could contribute about RM20mil in net profit over the construction period.

The estimated profit is based on a net margin of 4%, consistent with Binastra’s historical margins for Exsim-related data centre (DC) projects, said TA Research.

Given Binastra’s outstanding order book of about RM7bil, the research house revised down its new job win assumptions for financial year 2027 (FY27) and FY28 to RM2.5bil from RM3bil previously to reflect near-term capacity constraints.

It expects management to prioritise execution and delivery of the existing order book.

TA Research also trimmed its earnings forecasts for FY27 and FY28 by 2% and 4.8%, respectively, while its FY26 earnings estimates remain unchanged, as project execution assumptions for the current financial year are intact.

RHB Research said its outstanding order book to RM7bil translates into an order book-to-revenue cover ratio of 7.4 times, based on FY25 revenue.

Medium-term potential prospects include the remaining phases of The Asteriaz project by Exsim Development at Jalan Kebun Teh in Johor Baru, estimated to be worth about RM500mil.

Both TA Research and RHB Research maintained their “buy” calls on the stock.

TA Research lowered the target price (TP) to RM2.80 from RM2.85 a share based on the same targeted 17 times price-to-earnings multiple of its 2026 earnings per share.

RHB Research’s unchanged TP of RM2.72 a share is derived by pegging FY27 earnings per share to an unchanged target price earnings ratio of 17 times.

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