PETALING JAYA: Inta Bina Group Bhd
’s latest contract win has strengthened its earnings visibility, with analysts expecting the construction group to remain on track to meet its financial year 2026 (FY26) project replenishment target, backed by a sizeable tender book.
TA Research said Inta Bina’s RM3.6bil tender book, comprising residential, commercial and data centre projects, should support its FY26 replenishment assumption.
It highlighted potential data centre-related job wins as a key re-rating catalyst, given their typically larger contract values and shorter construction cycles of less than two years.
“This should support faster earnings recognition and stronger earnings growth for Inta Bina,” TA Research said.
Recently, the group’s wholly-owned subsidiary, Inta Bina Sdn Bhd, secured a RM221.1mil main building works contract from Prisma Melody Sdn Bhd, a wholly-owned subsidiary of Mitraland Holding (M) Sdn Bhd, for the proposed Gravit8 Phase 4 (Novva) development in Kota Bayuemas in Klang, Selangor.
The project comprises a 39-storey serviced apartment tower with 654 units and a 20-storey office tower, together with ancillary parking facilities, commercial spaces, recreational amenities and a sports complex.
Construction is scheduled to commence on Sept 28, 2026, with Section 1 targeted for completion by September 2028 and Section 2 by January 2029. The latest award marks Inta Bina’s fourth FY26 job win, lifting its year-to-date contract wins to RM645.2mil, or 75.9% of TA Research’s RM850mil FY26 replenishment assumption.
Hong Leong Investment Bank (HLIB) Research, meanwhile, expects the group to achieve its RM800mil to RM900mil project-win target for FY26, noting that several tenders are already at an advanced bidding stage.
HLIB Research also noted that the Mitraland contract incorporates a variation-of-price mechanism for selected building materials, providing some protection against unforeseen cost spikes.
It added that the latest award was Inta Bina’s fourth project secured from Mitraland over their 14-year relationship, with the project estimated to command a net margin of about 5% to 6%.
Including the latest contract, TA Research estimates Inta Bina’s outstanding order book will rise to about RM1.8bil, equivalent to 2.8 times its FY25 construction revenue.
“Assuming a net margin of 5%, the project is estimated to contribute approximately RM11.1mil in net profit over the construction period,” TA Research said.
“We believe this solid backlog should provide Inta Bina with clear near-term earnings visibility for at least the next two to three years,” it added.
HLIB Research also expects further tender book conversions in the coming months.
“We expect more conversions on its sizeable RM3.6bil tender book.
“We also understand several tenders are at an advanced bidding stage, which places Inta Bina on track to reach its replenishment target of RM800mil to RM900mil for FY26,” it said.
HLIB Research maintained its “buy” rating and 76 sen target price, based on a 10 times price-to-earnings multiple applied to FY27 earnings.
