PETALING JAYA: Inta Bina Group Bhd
’s latest contract award pushes its outstanding order book higher to RM1.9bil, translating into a healthy 2.9 times cover of its financial year 2025 (FY25) construction revenue, which should provide solid earnings visibility.
As the contract was secured from a recurring client, TA Research expects margins to remain broadly in line with Inta Bina’s typical main building construction projects. Assuming a net margin of 5%, the project could contribute about RM2.5mil in net profit over the construction period.
TA Research made no changes to its earnings forecast for Inta Bina, given this new job win is within its replenishment assumptions. It maintained its “buy” call on the stock with an unchanged target price of 78 sen a share, based on eight times 2027 price-to-earnings ratio. The shares were last traded at 40 sen.
The research house continues to favour Inta Bina for being a direct beneficiary of the robust domestic property sector, strong earnings visibility backed by a resilient order book, and improving profitability.
Inta Bina’s wholly-owned subsidiary, Inta Bina Sdn Bhd, secured a RM49mil main buildings works contract from Eco Business Park 7 Sdn Bhd, a special-purpose vehicle of Eco World Development Group Bhd, SD Guthrie Bhd and Negri Sembilan state agency NS Corp.
