PETALING JAYA: Binastra Corp Bhd
is rapidly transforming its growth profile by pivoting towards high-quality non-residential projects such as data centre (DC) construction, a move that is significantly accelerating its order book burn rate and improving earnings quality.
As of April, 25% of the firm’s unbilled order book comprised non-residential ventures, such as DC, sewage treatment plants, and solar EPCC (engineering, procurement, construction, and commissioning) works.
TA Research noted following the award of a RM491.2mil contract for Phase 2 of the Cheras DC, Binastra’s outstanding order book swelled to an estimated RM6.8bil, with non-residential projects now making up roughly 32% of the total.
“The growing contribution from non-residential projects improves the quality of its order book by diversifying earnings base beyond residential high-rise developments.
“This reduces reliance on any single project segment while positioning the group to benefit from structural investment themes such as Malaysia’s expanding data centre ecosystem and solar renewable energy rollout,” it stated in its latest report on the construction company.
“This strategic shift is a major catalyst for the company’s financial outlook. Unlike traditional high-rise residential developments, which typically require 30 to 36 months to complete, non-residential projects offer shorter construction timelines of 18 to 24 months.”
