INTA: Order Book Strengthened by Latest Contract, Buy Recommendation Sustained
| Investment Bank | TA SECURITIES |
|---|---|
| TP (Target Price) | RM0.76 (+76.7%) |
| Last Traded | RM0.43 |
| Recommendation |
A recent significant contract award has solidified Inta Bina Group Berhad’s order book and provided strong earnings visibility, leading a local investment bank to reiterate its “BUY” recommendation for the construction firm. The latest win marks the fourth such award for the financial year 2025 (FY25), significantly boosting the company’s unbilled projects.
Contract Details
Inta Bina Sdn Bhd, a wholly-owned subsidiary, secured a Letter of Award from Sime Darby Property (KL East) Sdn Bhd for main building, external, and M&E works for a condominium development in Setapak, Kuala Lumpur. Valued at RM212.3 million, the project encompasses the construction of two condominium blocks (Tower A with 233 units and Tower B with 247 units) atop an eight-storey podium, including parking facilities and resident amenities. The project is set to commence on October 7, 2025, with a 36-month duration, aiming for completion by October 6, 2028. This contract is expected to positively contribute to earnings throughout its construction period.
Order Book and Future Outlook
This new contract significantly boosts Inta Bina’s year-to-date (YTD) contract awards to approximately RM679.3 million for FY25, representing 46.8% of the company’s full-year target. More importantly, it expands the unbilled order book to a substantial RM1.9 billion. This robust order book provides a strong earnings visibility, with a 2.5 times cover ratio over FY24’s construction revenue. Based on a conservative 4% margin, the project is projected to contribute RM8.5 million throughout its duration.
Analyst View and Valuation
The investment bank noted that this contract win was within its expectations, leading it to maintain its earnings forecast for Inta Bina. The firm reiterated a “BUY” call with a maintained target price (TP) of RM0.76. This TP is derived from an 11x price-to-earnings (P/E) multiple applied to the projected FY26 earnings per share (EPS) of 6.89 sen. The ascribed P/E multiple falls within the typical 7-11x range for small-cap contractors. The valuation is further supported by Inta Bina’s healthy net cash position and robust outstanding order book.
