PETALING JAYA: A re-rating of Inta Bina Group Bhd
could be around the corner should the company manage to win more projects following a fourth job win for the financial year ending Dec 31, 2026 (FY26), according to RHB Research.
The building contractor on Monday announced an RM116mil project secured from Sime Darby Property Bhd to build landed residential homes and an electrical substation in the Kuala Lumpur suburb of Setapak.
The research house said the stock trades at a discount to the Bursa Malaysia Construction Index five-year price-to-earnings mean of 14 times.
It has maintained a “buy” call on the stock with a target price of 67 sen.
“We view this as unjustified, due to Inta’s steady track record in replenishing its order book (with jobs given by renowned property developers), along with its upcoming property projects that have a potential total gross development value of RM500mil,” it added.
It pointed out that the latest contract further strengthens its position in the landed property development segment, particularly within the Klang Valley.
No changes to the earnings estimates have been made, as the latest projects lie within the RM800mil job replenishment assumption for FY26.
“With this latest contract, Inta has clinched RM423.7mil in jobs this year, with an outstanding order book value of RM1.7bil, which translates into an order book-to-revenue cover ratio of 2.6 times, based on the company’s FY25 construction revenue,” it said.
Inta has a tenderbook worth RM3.3bil and has made inroads to other states such as Negri Sembilan through an RM49mil contract for industrial-related properties. Developers with a presence in the state continue to report strong sales that indicate local and foreign corporations remain active through expansions.
“A re-rating catalyst would be a stronger possibility of securing more jobs in Johor, as some of its long-term clients like Eco World Development Group Bhd and UEM Sunrise Bhd are undertaking projects in the region,” it said.
Furthermore, the company has clinched over RM200mil jobs in Johor, and another catalyst would be securing data centre contracts.
