PETALING JAYA: Exsim Hospitality Bhd remains on a positive growth trajectory after securing a RM73.7mil subcontract from Binastra Corp Bhd
’s subsidiary, Binastra Builders Sdn Bhd, for the supply and installation of building services and general building works.
The latest award lifts its cumulative financial year 2026 (FY26) year-to-date contract wins to RM182.1mil, reinforcing TA Research’s view that the group’s order replenishment momentum remains strong.
The new subcontract, which is subject to shareholder approval for Exsim Hospitality’s proposed diversification into general contracting, raises the group’s total unbilled order book to about RM255.9mil.
This translates into an order book cover of roughly 1.8 times FY25 revenue from its interior fit-out construction segment, giving stronger earnings visibility over the coming quarters.
Based on a pre-tax profit margin assumption of 15%, consistent with past projects from the same client, the contract is estimated to contribute around RM11.1mil in profit before tax over its construction period.
TA Research noted that current job wins had already achieved 72.8% of its FY26 replenishment target of RM250mil, suggesting the company is well on track to secure the balance within the next few months.
“We believe Exsim Hospitality remains on track to replenish the remaining portion in the coming months.
“Our positive stance is backed by the healthy internal job flow from Exsim’s robust development pipeline (cumulative gross development value of more than RM30bil), as well as recurring job flow from its existing clientele such as Binastra,” it said.
The latest award marks the company’s first general contracting-related project since announcing its diversification plan in February.
TA Research saw this as strategically significant because it allows the group to move beyond interior fit-out jobs into broader structural and building packages, which typically offer larger contract values and stronger replenishment potential.
The research house kept its “buy” recommendation with an unchanged target price of 40 sen, implying upside from the current 31 sen trading level.
The valuation is based on a sum-of-parts approach, covering the design and fit-out segment, hospitality division, Corus Hotel and Tower E assets.
