COMPANY UPDATE
Friday, August 22, 2025
FBMKLCI: 1.592.87
Sector: Construction
THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY*
Binastra Corporation Berhad
Secures Substructure Works for RM132mn in Johor
Raymond Ng Ing Yeow
Tel: +603-2167 9601
raymondng@ta.com.my
Clinches RM132mn Substructure Works in Johor
BNASTRA has been awarded a RM132mn contract by Exsim Lumba Kuda Sdn Bhd, a subsidiary of the established property developer EXSIM Group. The scope of works includes earthworks, piling, pile cap, and diaphragm wall construction for the proposed Causewayz Square @ JBCC development in Johor.
The project is slated to commence on 2 September 2025 and is scheduled for completion within 16 months.
Our View
This award marks BNASTRA’s sixth contract in FY26, lifting YTD wins to RM1.5bn – 37.5% of our full-year replenishment target of RM4.0bn. Its order book now stands at RM4.5bn, equivalent to a robust 4.8x FY25 revenue cover. On a conservative 9% net margin, we estimate this job will contribute c.RM11.9mn to earnings over the project period.
We see the momentum sustaining into 2HCY25, supported by a RM2.5bn pipeline concentrated in Johor. Key catalysts include upcoming launches in Taman Pelangi, Lumba Kuda, and Kebun Teh by key clients such as EXSIM and MAXIM. This reinforces our conviction that BNASTRA is on track to deliver against our job win assumptions.
Forecast
Earnings projections remain unchanged, with the new award already baked into our assumptions.
Valuation
We maintain our target price at RM2.53, based on a target PER of 16x. Our positive stance on BNASTRA is anchored by several key factors: (i) its strong and enduring relationships with major clients, (ii) its strategic position as a key beneficiary of the property sector’s growth momentum, and (iii) robust earnings visibility and growth potential, driven by a resilient and expanding order book. Maintain Buy recommendation on the stock.
| Share Information | |
|---|---|
| Bloomberg Code | BNASTRA MK |
| Bursa | BNASTRA |
| Stock Code | 7195 |
| Listing | Main Market |
| Share Cap (mn) | 1,091.2 |
| Market Cap (RMmn) | 1,887.7 |
| 52-wk Hi/Lo (RM) | 1.96/1.18 |
| 12-mth Avg Daily Vol (‘000 shrs) | 1,171.8 |
| Estimated Free Float (%) | 21.9 |
| Beta | 0.9 |
| Major Shareholders (%) | |
| JT Conglomerate Sdn Bhd | 41.2% |
| Lee Seng Yong | 12.9% |
| Datuk Jackson Tan | 11.1% |
| Forecast Revision | FY26 | FY27 |
|---|---|---|
| Forecast Revision (%) | 0.0 | 0.0 |
| Net profit (RMm) | 132.1 | 175.7 |
| Consensus | 132.8 | 169.8 |
| TA’s / Consensus (%) | 99.4 | 103.4 |
| Previous Rating | Buy (Maintained) | |
| Consensus Target Price | 2.57 | |
| Financial Indicators | FY26 | FY27 |
|---|---|---|
| Net Debt / Equity (%) | Net Cash | Net Cash |
| CFPS (sen) | 4.8 | 3.0 |
| Price / CFPS (x) | 36.2 | 57.1 |
| ROA (%) | 13.9 | 13.1 |
| NTA/Share (sen) | 34.4 | 45.7 |
| Price/NTA (x) | 5.0 | 3.8 |
| Share Performance (%) | BNASTRA | FBM KLCI |
|---|---|---|
| Price Change | ||
| 1 mth | (6.0) | 4.5 |
| 3 mth | 0.0 | 3.1 |
| 6 mth | (4.4) | 0.1 |
| 12 mth | 37.3 | (2.6) |
Source: Bloomberg
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22-Aug-25
Exhibit 1: Year-to-date New Job Win in FY26
| Project Name | Clients | Job Award Date | Start Date | Expected End Date | Contract Value (RM m) |
|---|---|---|---|---|---|
| Data Centre @Cyberjaya | MYT DC3 Sdn Bhd | Feb-25 | Feb-25 | Dec-25 | 250.4 |
| Kebun Teh – Plot 1 (The Asteriaz) | EXSIM | Apr-25 | Apr-25 | Sep-28 | 243.6 |
| Kebun The – Plot 2 | EXSIM | Apr-25 | TBC | TBC | 214.9 |
| Tuan Heritag3 | CPI Land | Jun-25 | Aug-25 | Dec-27 | 268.0 |
| The Queenswoodz | EXSIM | Jul-25 | TBC | TBC | 405.0 |
| Causewayz Square @JBCC – Substructure works | EXSIM | Aug-25 | Sep-25 | Jan-27 | 132.0 |
| Total | 1,513.8 | ||||
Source: Company, TA Research
Exhibit 2: Earnings Summary
Profit & Loss (RMmm)
| YE Jan 31 | 2024 | 2025 | 2026F | 2027F | 2028F |
|---|---|---|---|---|---|
| Revenue | 425.2 | 946.6 | 1,539.4 | 2,210.2 | 3,056.7 |
| EBITDA | 57.1 | 133.7 | 180.8 | 238.7 | 325.6 |
| Dep. & amortisation | (1.8) | (8.6) | (6.1) | (7.1) | (8.1) |
| Net finance cost | (0.1) | (0.6) | (0.9) | (0.4) | 0.3 |
| PBT | 55.1 | 124.5 | 173.8 | 231.2 | 317.8 |
| Taxation | (13.6) | (34.2) | (41.7) | (55.5) | (76.3) |
| MI | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Net profit | 41.6 | 90.3 | 132.1 | 175.7 | 241.5 |
| Core net profit | 40.7 | 90.1 | 132.1 | 175.7 | 241.5 |
| GDPS (sen) | 0.0 | 3.0 | 3.6 | 4.8 | 6.6 |
| Div Yield (%) | 0.0 | 1.7 | 2.1 | 2.8 | 3.8 |
Cash Flow (RMm)
| YE Jan 31 | 2024 | 2025 | 2026F | 2027F | 2028F |
|---|---|---|---|---|---|
| PBT | 55.1 | 124.5 | 173.8 | 231.2 | 317.8 |
| Changes in WC | (31.1) | (106.6) | (36.5) | (87.0) | (53.2) |
| Others | 0.7 | 9.1 | 0.0 | 0.0 | 0.0 |
| Operational cash flow | 13.2 | 1.9 | 102.5 | 96.2 | 196.1 |
| Capex | (10.1) | (46.0) | (10.0) | (10.0) | (10.0) |
| Others | 0.1 | 1.2 | 0.0 | 0.0 | 0.0 |
| Investment cash flow | (24.5) | (61.2) | (10.0) | (10.0) | (10.0) |
| Debt raised/(repaid) | 23.7 | (1.5) | 0.0 | 0.0 | 0.0 |
| Dividend | 0.0 | 0.0 | (39.6) | (52.7) | (72.5) |
| Others | (2.4) | 106.2 | (0.9) | (0.4) | 0.3 |
| Financial cash flow | 21.3 | 104.7 | (40.5) | (53.2) | (72.2) |
| Forex effect | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Deposit | (14.6) | (25.4) | (25.4) | (25.4) | (25.4) |
| Net cash flow | 10.0 | 45.4 | 52.0 | 33.0 | 114.0 |
| Beginning cash | 16.1 | 26.1 | 71.5 | 123.6 | 156.6 |
| Ending cash | 26.1 | 71.5 | 123.6 | 156.6 | 270.6 |
Balance Sheet (RMmm)
| YE Jan 31 | 2024 | 2025 | 2026F | 2027F | 2028F |
|---|---|---|---|---|---|
| Fixed assets | 9.5 | 47.4 | 51.3 | 54.2 | 56.1 |
| Others | |||||
| NCA | 9.5 | 47.4 | 51.3 | 54.2 | 56.1 |
| Cash and cash equivalent | 26.1 | 71.5 | 123.6 | 156.6 | 270.6 |
| Others | 18.5 | 131.7 | 131.7 | 131.7 | 131.7 |
| CA | 286.4 | 683.6 | 1,119.5 | 1,463.0 | 2,002.4 |
| Total assets | 295.9 | 731.0 | 1,170.8 | 1,517.2 | 2,058.5 |
| ST borrowings | 24.8 | 23.7 | 23.7 | 23.7 | 23.7 |
| Other liabilities | 49.9 | 94.7 | 94.7 | 94.7 | 94.7 |
| CL | 212.6 | 445.2 | 792.5 | 1,016.0 | 1,388.1 |
| Shareholders’ funds | 83.2 | 282.4 | 374.9 | 497.9 | 667.0 |
| MI | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| LT borrowings | 0.1 | 0.2 | 0.2 | 0.2 | 0.2 |
| Other LT liabilities | 3.1 | 3.1 | 3.1 | 3.1 | |
| Total capital | 295.9 | 731.0 | 1,170.8 | 1,517.2 | 2,058.5 |
Ratio
| YE Jan 31 | 2024 | 2025 | 2026F | 2027F | 2028F |
|---|---|---|---|---|---|
| EBITDA Margins (%) | 13.4 | 14.1 | 11.7 | 10.8 | 10.7 |
| Core EPS (sen) | 3.7 | 8.3 | 12.1 | 16.1 | 22.2 |
| EPS Growth (%) | 146.5 | 121.2 | 46.6 | 33.0 | 37.5 |
| PER (x) | 46.3 | 20.9 | 14.3 | 10.7 | 7.8 |
| GDPS (sen) | 0.0 | 3.0 | 3.6 | 4.8 | 6.6 |
| Div Yield (%) | 0.0 | 1.7 | 2.1 | 2.8 | 3.8 |
| Net cash (RMmm) | 15.8 | 73.1 | 125.1 | 158.2 | 272.1 |
| Net gearing (%) | Net Cash | Net Cash | Net Cash | Net Cash | Net Cash |
| ROE (%) | 64.8 | 49.3 | 40.2 | 40.3 | 41.5 |
| ROA (%) | 18.8 | 17.6 | 13.9 | 13.1 | 13.5 |
| NTA/share (sen) | 7.6 | 25.9 | 34.4 | 45.7 | 61.2 |
| P/NTA(x) | 22.7 | 6.7 | 5.0 | 3.8 | 2.8 |
Assumptions (RMmm)
| YE Jan 31 | 2024 | 2025 | 2026F | 2027F | 2028F |
|---|---|---|---|---|---|
| New job wins | 612.0 | 3,116.1 | 4,000.0 | 3,000.0 | 3,000.0 |
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22-Aug-25
Sector Recommendation Guideline
OVERWEIGHT: The total return of the sector, as per our coverage universe, exceeds 12%.
NEUTRAL: The total return of the sector, as per our coverage universe, is within the range of 7% to 12%.
UNDERWEIGHT: The total return of the sector, as per our coverage universe, is lower than 7%.
Stock Recommendation Guideline
BUY: Total return of the stock exceeds 12%.
HOLD: Total return of the stock is within the range of 7% to 12%.
SELL: Total return of the stock is lower than 7%.
Not Rated: The company is not under coverage. The report is for information only.
Total Return of the stock includes expected share price appreciation, adjustment for ESG rating and gross dividend. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting.
Total Return of the sector is market capitalisation weighted average of total return of the stocks in the sector.
ESG Scoring & Guideline
(≥80%): Displayed market leading capabilities in integrating ESG factors in all aspects of operations, management and future directions.+5% premium to target price
★ (60-79%): Above adequate integration of ESG factors into most aspects of operations, management and future directions.+3% premium to target price
★★ (40-59%): Adequate integration of ESG factors into operations and management and future directions.No changes to target price
★★★ (20-39%): Have some integration of ESG factors in operations and management but are insufficient.-3% discount to target price
★★★★ (<20%): Minimal or no integration of ESG factors in operations and management.-5% discount to target price
Disclaimer
The information in this report has been obtained from sources believed to be reliable. Its accuracy and/or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein.
As of Friday, August 22, 2025, the analyst, Raymond Ng Ing Yeow, who prepared this report, has interest in the following securities covered in this report:
(a) nil
TA SECURITIES HOLDINGS BERHAD 197301001467 (14948-M)
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Menara TA One | 22 Jalan P. Ramlee | 50250 Kuala Lumpur | Malaysia | Tel: 603 – 2072 1277 | Fax: 603 – 2032 5048
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