BNASTRA (7195): Construction Powerhouse Continues Winning Streak with New Mega Projects
Summary (TL;DR):
- Research Firm: RHB Investment Bank
- Subject: BNASTRA / BNASTRA (7195)
- Core Rating: BUY
- Target Price / Top Picks: MYR 2.64
- One-Liner: Binastra Corporation continues its strong job replenishment streak, securing a significant MYR405m contract from Exsim Jalil Link, reinforcing its robust orderbook and future growth prospects.
Report at a Glance
RHB Investment Bank released its latest research report on BNASTRA on 2025-07-09, maintaining a “BUY“ rating with a target price of MYR 2.64. The core thesis of the report is that Binastra Corporation is continuing its strong job replenishment trend, securing significant new contracts that bolster its outstanding orderbook and position it for robust earnings growth, justifying its maintained BUY rating.
Investment Thesis (The Bull Case)
- Point 1: Binastra recently secured a MYR405m contract from Exsim Jalil Link for The Queenswoodz project, marking its fifth job win for FY26 and contributing to a year-to-date total of approximately MYR1.4bn in new wins.
- Point 2: The company boasts a healthy outstanding orderbook of MYR4.6bn, with an estimated MYR2.6bn in additional job wins expected to meet the FY26 target of MYR4bn, primarily from existing key clients.
- Point 3 / Key Beneficiaries: Binastra is well-positioned for further opportunities from key clients like EXSIM Development, Maxim Global (MAXIM MK), and Platinum Victory, with an estimated MYR3.5bn worth of construction jobs yet to be awarded across various mixed development projects and potential new projects in Johor. The company’s diversification into non-residential projects like data centers and sewage treatment plants also enhances its appeal.
Potential Risks (The Bear Case)
- Risk 1: A key downside risk highlighted is the potential for sluggish job replenishment trends, which could impact future earnings visibility and orderbook growth.
- Risk 2: (No further explicit major risks were highlighted in the report summary.)
- Risk 3: (No further explicit major risks were highlighted in the report summary.)
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) | 1,610 | 2,027 | 2,686 |
| Net Profit (RM mil) | 134 | 169 | 205 |
| EPS (sen) | 12 | 16 | 19 |
| DPS (sen) | 4 | 5 | 6 |
| Dividend Yield (%) | 2.0 | 2.5 | 3.0 |
| P/E Ratio (x) | 15.14 | 11.99 | 9.89 |
(Source: RHB Investment Bank research report)
Valuation & Target Price
| Rating | BUY |
| Last Close Price | MYR 1.86 |
| Target Price (TP) | MYR 2.64 |
| Valuation Methodology | The target price is derived by pegging the FY27F EPS to an unchanged target P/E of 17x, with no ESG premium ascribed. |
Analyst’s Conclusion
- Overall Stance: The analyst maintains a positive outlook and a “BUY” rating on Binastra Corporation, citing its strong job win momentum, robust outstanding orderbook, and attractive valuation relative to peers.
- Key Catalyst/Strength: The company’s ability to secure significant new construction contracts, diversify its project portfolio beyond traditional residential high-rises to include data centers and sewage treatment plants, and its strong pipeline of potential future projects from key clients are its primary strengths.
- Major Headwind/Risk: The primary concern remains the potential for a slowdown in job replenishment, which could hinder future growth and earnings visibility.
- What to Watch: Investors should monitor the progress of new job wins, particularly from new clients for high-rise residential projects and securing EPCC contracts for green infrastructure via its newly incorporated renewable energy arm, Binastra Green Energy.
Disclaimer: This article is a summary and interpretation of a research report published by RHB 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.
