INTA: Major Contract Win Enhances Earnings Visibility, ‘Buy’ Rating Affirmed

A leading construction group has secured a significant new contract, further enhancing its robust order book and reinforcing future earnings visibility. The company’s wholly-owned subsidiary recently accepted a Letter of Award for main building works valued at RM49.0 million.

The new project, located in Mukim Jimah, Port Dickson, Negeri Sembilan, is part of the Eco Business Park 7 industrial development. It encompasses the construction of 32 units of cluster factories, 64 units of cluster factories, and 6 electrical substations. The project is slated to commence on July 1, 2026, with an 18-month completion period, targeting completion by December 31, 2027.

Order Book and Future Outlook

This latest contract brings the group’s FY26 year-to-date new order book wins to RM49.0 million. Including this new win, the outstanding order book now stands at approximately RM1.8 billion. This substantial figure translates into a robust 2.4 times cover of the projected FY25 revenue, providing strong earnings visibility for the coming years. Analysts view this contract as consistent with the company’s typical construction projects.

Analyst Recommendation

Analysts have maintained their “BUY” recommendation for the company, affirming an unchanged target price of RM0.76. This valuation is derived based on P/E multiples of 11x to FY26f estimated earnings per share (EPS) of 6.89 sen. The job win aligns with analyst expectations, leading to a maintenance of previous earnings forecasts.