PETALING JAYA: Exsim Hospitality Bhd’s cumulative year-to-date new job wins including its latest RM41.5mil contract, have increased to RM226.2mil for the financial year 2026 (FY26), which lifted the group’s total outstanding order book to about RM300.1mil.
This implied a healthy order book cover of about 2.2 times its FY25 interior fit-out construction segment revenue, which would ensure Exsim’s near-term earnings visibility, TA Research said in a report yesterday.
On Wednesday, Exsim’s subsidiary Concepto Sdn Bhd bagged a RM41.5mil contract from Cosmopolitan Avenue Sdn Bhd. It is set to commence on April 1 with the completion targeted for Sept 30.
Assuming a pre-tax profit margin of 15%, TA Research estimated that the new contract could generate around RM6.2mil in pre-tax profit over the construction period.
At the current replenishment rate, Exsim has achieved about 90.5% of its FY26 new job replenishment assumption of RM250mil.
“We believe Exsim remains on track to replenish the remainder in the coming months,” it said.
This is supported by strong internal job flow from Exsim’s large pipeline (over RM30bil in gross development value) and continued project flows from existing clients such as Binastra Corp Bhd
, which should help to sustain its outstanding order book growth and earnings visibility.
TA Research has maintained a “buy” call on the stock with an unchanged target price of 40 sen per share.
“We continue to like Exsim, which is underpinned by its position as the strategic beneficiary of Exsim Group’s expansive development pipeline, its hybrid hospitality strategy that ensures earnings visibility,” the research house said.
