PETALING JAYA: Inta Bina Group Bhd
is expected to deliver stronger earnings growth in the coming quarters supported by a sizeable order book, improving job replenishment prospects and fresh contributions from its property development segment, according to some analysts.
RHB Research remained positive on the construction group’s prospects as the company broadened its exposure beyond residential developments into industrial properties.
“It is not just focusing on residential projects but also industrial properties as seen from the win for a RM49mil contract related to cluster factories in Port Dickson, Negri Sembilan,” it said.
The research house noted that Inta Bina’s outstanding order book stood at RM1.5bil as at the end of the first quarter of financial year 2026, equivalent to an order book-to-revenue cover ratio of 2.3 times based on financial year 2025 (FY25) construction revenue.
It added that the group’s tender book amounted to RM3.3bil as at May 23.
Despite lowering its FY26 to FY28 earnings forecasts by between 5% and 8% after assuming a more conservative pace of contract replenishment, RHB Research maintained a “buy” call on the stock with a revised sum-of-parts-derived target price of 67 sen from 72 sen previously.
It noted that the stock currently trades at a 5.1 times FY27 price-earnings (P/E) ratio, which represents a huge discount to the Bursa Malaysia Construction Index’s five-year mean P/E of around 14 times.
Meanwhile, TA Research said Inta Bina’s near-term earnings visibility remained supported by its RM1.5bil unbilled construction order book and RM11.7mil in unbilled property sales as at end-March of this year.
The research house acknowledged that contract wins had been slower than expected, with the group securing RM81.4mil worth of new jobs year-to-date in FY26, representing about 10% of its full-year replenishment assumption of RM850mil.
However, it expects momentum to pick up in the quarters ahead.
“While the replenishment pace has been slower than anticipated, we expect momentum to improve in the coming quarters, supported by Inta Bina’s sizeable RM4.9bil tender book with several tenders already at an advance stage of evaluation and finalisation,” TA Research said.
Furthermore, TA Research raised its target price for Inta Bina to 71 sen from 68 sen previously after increasing its target P/E multiple to 7.5 times from seven times, while maintaining its positive outlook on the stock.
