PETALING JAYA: TA Research has maintained its “buy” call on construction outfit Inta Bina Group Bhd
following its latest contract award, where it estimates the group’s outstanding order book to have now risen to approximately RM2bil.
TA Research in a note to clients said at RM2bil, this represented a healthy 3.1 times cover of its financial year ended Dec 31, 2025 (FY25) construction revenue.
“We believe this healthy backlog should provide solid near-term earnings visibility.
“Assuming a net margin of 5%, the project is estimated to contribute approximately RM1.6mil in net profit over the construction period.”
On Wednesday, Inta – through its wholly-owned subsidiary Inta Bina Sdn Bhd – said it clinched a RM32.4mil main buildings works contract from Eco Ardence Sdn Bhd, a joint venture vehicle of Eco World Development Group Bhd and Cascara Sdn Bhd.
TA Research noted that the contract covers the development of two blocks – a two-storey building comprising 22 low-cost shop units and a multipurpose hall, as well as a five-storey building featuring 14 ground-floor retail units, three levels of office space (Levels One to Three) and a hall at Level Four.
The scope also includes the construction of an electrical substation, encompassing full civil, structural, and mechanical and electrical works under a single design-and-build contract.
The contract carries a construction period of 18 months, with works scheduled to commence on April 15 and targeted for completion by Oct 15, 2027.
TA Research said this marks Inta’s second job win in FY26, bringing its FY26 year-to-date order wins to RM81.4mil, achieving approximately 9.6% of its full-year replenishment assumption of RM850mil.
“While the replenishment pace has been slower than anticipated, we expect momentum to improve in the coming quarters and our constructive view is supported by Inta’s sizeable RM4.9bil tender book, which should provide solid support to sustain its new job win visibility,” it added.
Given that this new contract win is within expectations, the research house will be keeping its earnings forecast unchanged at this juncture.
TA Research has maintained its “buy” call on the stock with a lower target price of 68 sen, premised on a lower seven times 2027 price-to-earnings (P/E).
“We ascribe a lower targeted P/E of seven times (from eight times previously) to reflect risks related to the potential upward pressure on building material costs arising from the recent Middle East conflict,” it said.
At last look, the stock was at 37 sen.
