INTA: Contract Win Bolsters Order Book, Earnings Visibility Enhanced

A recent contract win, valued at RM40.6 million, is set to significantly enhance the outstanding order book and provide robust earnings visibility for the company. This project marks the sixth contract win for the year, reinforcing the investment bank’s confidence in the company’s prospects. Consequently, analysts have maintained a BUY recommendation with a target price of RM0.76, reflecting a substantial capital upside from its current trading level.

Contract Details and Scope

The new Letter of Award was secured by the company’s wholly-owned subsidiary, Inta Bina Sdn Bhd, from Eco Majestic Development Sdn Bhd. The contract encompasses main building works in Beranang, Selangor, and includes the construction of 30 double-storey terrace homes (Garden Homes Type 2A, 30’x60′), 65 double-storey terrace homes (Garden Homes Type 2B, 30’x60′), and 33 double-storey terrace homes (Garden Homes Type 2C, 30’x75′), alongside one electrical substation. The project is scheduled to commence on October 8, 2025, with an expected completion period of 20 months, targeting June 7, 2027.

Financial Impact and Future Outlook

This latest contract win elevates the company’s FY25 year-to-date new job acquisitions to a formidable RM786.4 million. As a result, the outstanding order book now stands at an estimated RM1.9 billion, representing a healthy 2-2.5 times its FY24 base revenue. This substantial order book provides strong earnings visibility into the future.

Margins are projected to remain consistent with the typical levels observed in the company’s high-rise property development projects, at a conservative ~4% margin. This is expected to contribute approximately RM1.6 million in earnings throughout the project duration, further solidifying the company’s financial performance.

Valuation and Recommendation

TA SECURITIES has maintained its earnings forecast, noting that this significant job win aligns with their expectations. The investment bank has reiterated its BUY rating with an unchanged target price of RM0.76. This valuation is based on pegging the company’s FY26 EPS of 6.89 sen to an 11x price-to-earnings (P/E) multiple, which is in line with the range typically ascribed to small-cap contractors.

The maintained positive recommendation is primarily supported by the company’s healthy net cash position and its robust outstanding order book, both of which are key indicators of future stability and growth potential.