PETALING JAYA: Exsim Hospitality Bhd’s latest RM138mil contract win has lifted the group’s financial year 2026 (FY26) year-to-date (y-t-d) new job wins to RM364.2mil, says TA Research.
This has also surpassed the research house’s FY26 full-year new job win assumption of RM250mil.
Last Friday, Exsim Hospitality’s subsidiary, Exsim Concepto Sdn Bhd, clinched a subcontractor works contract from Binastra Builders Sdn Bhd, a subsidiary of Binastra Corp Bhd
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In a note to clients, TA Research said: “We estimate that this latest win will bring Exsim Hospitality’s total outstanding order book to about RM438.1mil, translating into a strong 2.6 times its FY25 construction segment revenue, ensuring near-term earnings visibility.”
Assuming a pre-tax profit margin of 12%, this job is estimated to contribute approximately RM16.6mil in pre-tax profit to Exsim over the contract period.
“Given Exsim Hospitality’s FY26 y-t-d new job wins exceed our assumptions, we have revised upward our new job wins forecast to RM400mil (from RM250mil previously).
“We have also taken the opportunity to fine-tune our order book burn rate to better reflect actual execution,” it added.
Following these revisions, TA Research has raised Exsim Hospitality’s FY26 to FY28 earnings forecasts by 5.1%, 8.9% and 21.5%, respectively.
The brokerage, which has a “buy” call on the stock, has set a higher target price at 43 sen from 39 sen previously.
TA Research favours Exsim Hospitality for its position as a strategic beneficiary of Exsim Group’s expansive development pipeline, its hybrid hospitality strategy that ensures earnings visibility, and the potential future value unlock via a hospitality real estate investment trust.
