INTA: Solid Financials and Strong Order Book Drive Positive Outlook, Analysts Reiterate ‘Buy’

The company has reported a robust financial performance for the first nine months of FY25, with adjusted core net profit of RM28.2 million largely aligning with expectations. This figure met 71.8% of the full-year estimate and 70.9% of consensus forecasts, underscoring effective operational management and consistent delivery.

Performance Review

Year-on-year, revenue saw a significant increase of 15.1%. This impressive growth was primarily propelled by a strong rebound in the property division, which surged by 195.3% due to higher progress billings from its maiden Senuri Residence project. Complementing this, steady contributions from ongoing construction works, which grew by 6.0%, further bolstered the top line. Consequently, core net profit expanded by 16.8%, broadly mirroring the revenue growth.

On a quarter-on-quarter basis, revenue improved marginally by 1.2%, attributed to a 1.3% uplift in the construction division. This was driven by stronger billings from existing projects reaching peak execution and the initial earnings contribution from new FY25 year-to-date wins. While the property development segment experienced a slight dip of 2.8% sequentially, overall core earnings still advanced by 11.7%.

Profitability also saw a notable enhancement, with the core PBT margin improving by 40 basis points year-on-year. This improvement was largely due to the higher revenue growth effectively offsetting a 13.8% increase in the cost of goods sold, further supported by a sharp 110.4% rise in other income.

Future Outlook and Investment Perspective

The outlook remains highly positive, underpinned by a substantial unbilled construction order book of RM1.8 billion as of end-September 2025. This order book represents a 2.4x cover of the FY25 construction segment revenue forecast. Coupled with unbilled property sales totaling RM40.7 million, this provides strong earnings certainty for the next three years.

Analysts are optimistic regarding the group’s job replenishment prospects, maintaining a forecast of RM1.0 billion in contract wins for FY25. This is supported by a robust tender pipeline estimated at c.RM4.5 billion, comprising residential projects from a diverse and recurring client base including prominent developers like Eco World, Gamuda Land, Sime Darby Property, and Tropicana Corporation. Year-to-date, the company has secured RM865.2 million in new jobs, achieving approximately 86.5% of its full-year target. Contract award momentum is expected to strengthen in the fourth quarter of FY25, aligning with the industry trend of residential launches typically peaking in the second half of the year.

TA Securities maintains its “Buy” recommendation, with a target price of RM0.88, pegged to its CY26 earnings. The stock is also highlighted for its attractive dividend yield of 6.3%, based on the projected FY25 dividend payout of 2.5 sen per share. The investment bank continues to favor the company due to its position as a direct beneficiary of the robust domestic property sector, strong earnings visibility from a resilient order book, and improving profitability.