THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY*
Inta Bina Group Berhad
RM1.00
(+132.6%)
RM0.43
Tel: +603-2167 9601
raymondng@ta.com.my
www.taonline.com.my
Clinches RM264.5mn of Main Building Works
INTA has secured a Letter of Award from 368 Segambut Sdn Bhd – a joint venture between IJM Land Bhd and FCW Holdings Bhd – for the main building works of the luxury serviced apartment project, Stellaris Riana Dutamas, in Segambut, Kuala Lumpur. Valued at RM264.5mn, the contract entails the construction of two blocks comprising 1,143 serviced apartment units, an eight-level podium parking structure, and associated facilities.
The project will commence on 18 August 2025, with completion targeted within 38 months.
Our View
This marks INTA’s third contract secured in FY25, bringing total YTD wins to approximately RM467.0mn, or 46.7% of our full-year assumption. Consequently, its unbilled orderbook has increased to an estimated RM1.7bn, representing 2.5x FY24 construction revenue.
Assuming a PBT margin of 6%, the project is expected to contribute an estimated RM12.1mn in net profit over its construction period.
Impact
Despite the new job wins, we have revised our progress billing assumption to reflect the timing of revenue recognition from these contracts. As a result, our FY25F earnings projections reduced marginally by 5.6%.
Meanwhile, we also applied some housekeeping adjustments to our models to account for the impact of new ESOS shares, which leads to EPS dilution across FY25-27F.
Valuation
Following the housekeeping, our target price is reduced slightly to RM1.00 (previously RM1.06), premised on an unchanged 11x CY26 earnings. We continue to like INTA for the following factors: (i) a direct beneficiary of the robust domestic property sector, (ii) strong earnings visibility backed by a resilient orderbook, and (iii) improving profitability. Maintain Buy call on the stock.
Table 1: YTD FY25 New Job Wins
| Project Name | Clients | Job Award Date | Start Date | Expected End Date | Contract Value (RM mn) |
|---|---|---|---|---|---|
| Seruma Integrated Devleopment – Design and build | Eco World Development Group Bhd | Feb-25 | Mar-25 | Dec-27 | 181.0 |
| Stellaris Riana Dutamas – Main building works | 368 Segambut Sdn Bhd | Aug-25 | Aug-25 | Oct-28 | 264.5 |
| Other | Other | 21.5 | |||
| Total | 467.0 | ||||
Table 2: Earnings Summary
Profit & Loss (RMmn)
| YE Dec 31 | 2023 | 2024 | 2025F | 2026F | 2027F |
|---|---|---|---|---|---|
| Revenue | 650.1 | 690.8 | 900.3 | 1,073.2 | 1,144.2 |
| EBITDA | 47.0 | 61.7 | 80.1 | 99.4 | 106.0 |
| Dep. & amortisation | (10.9) | (13.2) | (15.8) | (18.9) | (21.9) |
| Net finance cost | (5.6) | (6.0) | (7.6) | (7.6) | (7.6) |
| PBT | 31.8 | 43.4 | 56.7 | 72.9 | 76.5 |
| Taxation | (8.9) | (10.4) | (13.6) | (17.4) | (18.3) |
| MI | (0.0) | 0.1 | (0.1) | (0.1) | (0.1) |
| Net profit | 22.9 | 33.2 | 43.0 | 55.4 | 58.1 |
| Core net profit | 23.3 | 32.4 | 43.0 | 55.4 | 58.1 |
| GDPS (sen) | 1.5 | 2.0 | 2.5 | 3.0 | 3.5 |
| Div Yield (%) | 3.5 | 4.7 | 5.8 | 7.0 | 8.1 |
Cash Flow (RMmn)
| YE Dec 31 | 2023 | 2024 | 2025F | 2026F | 2027F |
|---|---|---|---|---|---|
| PBT | 31.8 | 43.4 | 56.7 | 72.9 | 76.5 |
| Changes in WC | 32.9 | (46.6) | (7.4) | 18.7 | 7.9 |
| Others | (6.7) | (4.7) | (0.1) | (0.1) | (0.1) |
| Operational cash flow | 65.6 | 1.0 | 59.1 | 100.6 | 95.5 |
| Capex | (9.9) | (23.6) | (30.0) | (30.0) | (30.0) |
| Others | (4.2) | 9.9 | (2.2) | 0.0 | 0.0 |
| Investment cash flow | (14.0) | (13.7) | (32.2) | (30.0) | (30.0) |
| Debt raised/(repaid) | (22.5) | 46.9 | 0.0 | 0.0 | 0.0 |
| Dividend | (6.7) | (13.7) | (15.2) | (18.3) | (21.3) |
| Others | 0.5 | (1.8) | (7.6) | (7.6) | (7.6) |
| Financial cash flow | (28.7) | 31.3 | (22.8) | (25.8) | (28.9) |
| Forex effect | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Deposit | (47.6) | (61.1) | (61.1) | (61.1) | (61.1) |
| Net cash flow | 23.1 | 0.1 | 6.3 | 44.8 | 36.6 |
| Beginning cash | 30.7 | 53.9 | 53.9 | 60.2 | 105.0 |
| Ending cash | 53.9 | 53.9 | 60.2 | 105.0 | 141.6 |
| Deposit pledged | 47.6 | 61.1 | 61.1 | 61.1 | 61.1 |
| Cash | 101.5 | 115.0 | 121.3 | 166.0 | 202.7 |
Assumptions (RM mn)
| YE Dec 31 | 2023 | 2024 | 2025F | 2026F | 2027F |
|---|---|---|---|---|---|
| New job wins | 453 | 1,158.6 | 1,000.0 | 1,000.0 | 1,000.0 |
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
| Scoring | Environmental | Social | Governance | Average |
|---|---|---|---|---|
| ★★★ | ★★★ | ★★★ | ★★★ | ★★★ |
| Remark | Have yet to set up comprehensive environmental policy but generally in compliance with project environmental requirements. | Gave back to society through scholarship, donation and biweekly gotong-royong campaign. | The board is presented by 55.6% independent directors with 22.0% women directors. | |
| ★★★★★ (≥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, 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 Tuesday, August 12, 2025, the analyst, Raymond Ng Ing Yeow, who prepared this report, has interest in the following securities covered in this report:
(a) nil
