PETALING JAYA: Exsim Hospitality Bhd’s new job wins have risen to RM482.3mil year-to-date for the financial year 2026 (FY26), surpassing market expectations, says TA Research.
This is also inclusive of the newly secured RM66.8mil demolition and architecture work contract from Dynamicz Sdn Bhd by Exsim’s subsidiary EXSIM Concepto Sdn Bhd on Tuesday.
The research house said: “Consequently, we estimate the group’s outstanding order book to increase to about RM577.5mil, equivalent to a healthy 4.2 times FY25 construction segment revenue, providing strong near-term earnings visibility.”
Based on an assumed pre-tax profit (PBT) margin of 5%, the latest project is expected to contribute approximately RM3.3mil in PBT over the contract duration, the research house added.
Looking ahead, TA Research expects Exsim’s FY27 new job replenishment momentum to remain solid, backed up by the sustained recurring internal job flows from EXSIM Development’s property development pipeline as well as external tender books comprising interior fit-out jobs within banking segments that carry larger contract sizes and better margins.
Meanwhile, the research house said it has incorporated the actual RM482.3mil new job win figures into its earnings forecast as Exsim’s FY26 draws to a close.
“We also take the opportunity to fine-tune our order book burn rate to better reflect the actual order book execution. Including these revisions, we raise our FY26 to FY28 earnings forecasts by 0.6%, 0.1% and 4.6%, respectively,” it said.
By incorporating the earnings forecast adjustment, the research house has raised the stock’s target price to 58 sen from 56 sen previously.
It continued to favour Exsim for its position as the strategic beneficiary of Exsim Group’s expansive development pipeline, its hybrid hospitality strategy that ensures earnings visibility and the potential future value unlock through hospitality real estate investment trust.
The key downside risks include slower-than-expected new job replenishment and the weakening tourism sector outlook.
