PETALING JAYA: Inta Bina Group Bhd
has room for a re-rating given its steady earnings growth trajectory and growing contribution from its higher-margin property segment, says Hong Leong Investment Bank (HLIB) Research.
After securing RM424mil worth of new contracts year to date, Inta Bina’s construction order book has grown to RM1.6bil.
It also sits on a sizeable RM3.6bil tender book, which should fuel further wins, with another RM400mil expected over the remaining months to bring full-year wins to its RM800mil to RM900mil target.
In initiating a coverage on the stock with a “buy” call at a target price of 74 sen, HLIB Research said: “Despite the strong order book build-up, construction revenue growth remained muted in the financial year 2024 (FY24) to FY25 as the bulk of newly secured jobs remained at the early stages of the construction.
“We expect billings to accelerate over FY27 to FY28 as more projects progress along the S-curve, with the majority of ongoing projects still at about 50% completion.”
Meanwhile, the group is replenishing its development pipeline with the impending launch of two projects in fourth quarter of FY26 (4Q26) to 1Q27 namely Seiring Setia with a gross development value (GDV) of RM200mil and Aliran Restu (GDV: RM300mil) following the success of its maiden project, Senuri Residence in Selangor.
“The launches should lift property billings from second half of FY27 and scale up further in FY28 as both projects move up the S-curve,” added HLIB Research.
According to the research house, property development is margin accretive to the group, generating double-digit net margins versus the mid-single-digit margins of Inta Bina’s core construction business.
“Beyond landbanking, Inta Bina is now exploring opportunities with major developers in the form of development rights and potential joint ventures.”
The group now commands a healthy balance sheet with net gearing of merely 0.09 times and net debt of RM24mil as of end-June 2026.
“Not only does this provide ample headroom to grow its property ventures, but it also reinforces Inta Bina’s ability to consistently dish out dividends, with the group paying out about 30% to 40% of net profit over the past few years,” HLIB Research noted.
The research house also forecasts the group’s earnings for FY26, FY27 and FY28 to grow by 4%, 21% and 29%, propelled by stronger construction billings, with more projects advancing into the steeper phase of their S-curves and a step-up in property earnings following the launch of new developments, Seiring Setia and Aliran Restu in 4Q26 to 1Q27.
