BNASTRA (7195): Secures RM405mn Contract, Propelling Orderbook to RM4.6bn, Target MYR 2.53
Summary (TL;DR):
- Research Firm: TA Investment Bank
- Subject: BNASTRA / BNASTRA (7195)
- Core Rating: BUY
- Target Price / Top Picks: MYR 2.53
- One-Liner: Binastra Corporation Berhad’s latest RM405mn contract win significantly boosts its unbilled orderbook to RM4.6bn, ensuring robust earnings visibility and cementing its strong position as a key beneficiary of property sector growth.
Report at a Glance
TA Investment Bank released its latest research report on BNASTRA on 2025-07-09, maintaining a “BUY“ rating with a target price of MYR 2.53. The core thesis of the report is that BNASTRA’s recent RM405mn contract win for The Queenswoodz project has substantially increased its unbilled orderbook, providing strong earnings visibility and solidifying its growth prospects through enduring client relationships and a robust project pipeline.
Investment Thesis (The Bull Case)
- Point 1: Strong and enduring relationships with major clients, which are crucial for securing new projects and maintaining a healthy orderbook.
- Point 2: Strategic position as a key beneficiary of the property sector’s growth momentum, particularly with robust project rollouts in the southern region.
- Point 3 / Key Beneficiaries: Robust earnings visibility and growth potential, driven by a resilient and expanding order book, now standing at RM4.6bn (4.9x FY25 revenue cover). Key clients like EXSIM and MAXIM are expected to fuel a strong RM2.5bn pipeline of upcoming projects in Johor (Taman Pelangi, Lumba Kuda, Kebun Teh).
Potential Risks (The Bear Case)
- The report primarily focuses on positive catalysts and does not explicitly detail specific major risks to the investment thesis.
Financial Forecast Summary
The analyst’s financial projections for the coming years are as follows:
| Fiscal Year (YE to Jan) | FY26F | FY27F | FY28F |
|---|---|---|---|
| Revenue (RM mil) | 1,539.4 | 2,210.2 | 3,056.7 |
| Net Profit (RM mil) | 132.1 | 175.7 | 241.5 |
| EPS (sen) | 12.1 | 16.1 | 22.2 |
| DPS (sen) | 3.6 | 4.8 | 6.6 |
| Dividend Yield (%) | 2.0 | 2.6 | 3.6 |
| P/E Ratio (x) | 15.3 | 11.5 | 8.3 |
(Source: TA Investment Bank research report)
Valuation & Target Price
| Rating | BUY |
| Last Close Price | RM1.86 |
| Target Price (TP) | MYR 2.53 |
| Valuation Methodology | The target price is maintained at RM2.53, based on a target PER of 16x. |
Analyst’s Conclusion
- Overall Stance: TA Investment Bank maintains its “Buy” recommendation on BNASTRA, driven by a highly positive outlook on the company’s strong fundamentals and growth trajectory.
- Key Catalyst/Strength: The securing of the RM405mn Queenswoodz contract, which significantly boosts the unbilled orderbook to RM4.6bn, coupled with strong, enduring client relationships, ensures robust earnings visibility.
- Major Headwind/Risk: The report primarily highlights positive drivers and does not explicitly detail major headwinds or risks.
- What to Watch: Investors should monitor BNASTRA’s progress in converting its robust RM2.5bn pipeline of upcoming project rollouts in the southern region, especially those anchored by key clients EXSIM and MAXIM in Johor, into new job wins.
Disclaimer: This article is a summary and interpretation of a research report published by TA Investment Bank on 2025-07-09. All information is for reference purposes only and does not constitute investment advice. Investors should conduct their own independent research and due diligence and assume all associated risks.
