BNASTRA: Record Order Book Bolstered by Major Data Centre Contract, ‘Buy’ Rating Maintained
| Investment Bank | TA SECURITIES |
|---|---|
| TP (Target Price) | RM0.25 (+25.0%) |
| Last Traded | RM0.20 |
| Recommendation |
A recent research report from PhillipCapital highlights a significant contract win that has propelled an investment bank’s covered company’s order book to a record high, securing robust earnings visibility for the coming years. The firm has reiterated its “BUY” recommendation, pointing to strong fundamentals and growth prospects in the data centre segment.
Performance Review
The company’s wholly-owned subsidiary, Binastra Builders Sdn Bhd, recently secured a substantial RM503 million data centre (DC) contract from Exsim Sri Permai Sdn Bhd. This contract, encompassing design, construction, and infrastructure works for a proposed DC (Plot 1) located in Cheras, Kuala Lumpur, is scheduled to commence in February 2026 with an expected completion within 20 months.
This latest win marks the fourth DC project awarded by EXSIM and the sixth overall for the group, elevating its cumulative DC portfolio value to RM1.9 billion. Following this, the company’s outstanding order book has surged to a record high of RM7 billion, providing strong earnings visibility for at least the next three to four years. The contract accounts for approximately 14% of the estimated full-year replenishment target for FY27E, keeping the group on track to meet its goals.
The report notes that the EXSIM Cheras DC development comprises a total capacity of 30MW, to be rolled out in two parcels of 15MW each. The company has successfully secured the first 15MW parcel and is believed to have a strong chance of securing the second, supported by its proven track record and longstanding relationship with EXSIM.
Future Outlook and Investment Recommendation
The investment bank expects the company’s DC footprint to continue expanding, driven by the group’s active pursuit of new opportunities to capitalize on structural growth in data centre demand.
PhillipCapital reiterated its “BUY” rating with an unchanged 12-month target price of RM2.60. This valuation is based on an unchanged target 16x multiple on FY27E EPS. The bank continues to favor the company due to its strong competitive advantages as a preferred contractor with key clients and superior profit margins.
However, potential downside risks were identified, including slower-than-expected order book replenishment, unforeseen project delays, and pressure on project margins.
