Strong order book, RM645mil wins to drive Inta Bina earnings

KUALA LUMPUR: Inta Bina Group Bhd's earnings are expected to remain supported by its strong construction order book, with new contract wins already reaching about RM645 million in financial year 2026 (FY26), said Rakuten Trade Sdn Bhd.

The firm forecasts Inta Bina's net profit at RM42.6 million for FY26 and RM49.2 million for FY27 and has kept a "Buy" call on the construction company with a target price of 80 sen.

Rakuten said the target price was based on 10 times the FY26 price-to-earnings ratio, in line with the sector average for peers of similar scale.

"Our recommendation is premised on its ability to secure new jobs, attractive dividend yield and strong orderbook, providing good earnings visibility going forward," it said in a note.

The company secured four construction projects worth RM424 million as of August, comprising a RM49 million cluster factory at Eco Business Park 7, a RM32 million retail and office block at Eco Ardence, a RM227 million mixed development at Bandar Botanic Klang and an RM116 million KL East 61 terrace housing project.

In September, Inta Bina secured a further RM221.1 million contract from Mitraland for Gravit8 Phase 4 (Novva) in Kota Bayuemas, Klang.

The project comprises a 39-storey serviced apartment and a 20-storey office tower.

Rakuten said the latest contract lifted Inta Bina's FY26 new construction orders to about RM645 million.

The company also has a tender book worth RM3.6 billion, comprising residential, commercial and data-centre projects, providing further potential for orderbook replenishment.

As of the first half of FY26, Inta Bina had an unbilled construction order book of RM1.6 billion, excluding the RM221.1 million Mitraland contract.

Rakuten said the company was also diversifying into property development following the completion of Senuri Residences.

Its next two projects are Seiring Setia, a serviced apartment development in Bukit Jelutong with an estimated gross development value (GDV) of more than RM291 million, and Aliran Restu in Glenmarie, with an estimated GDV exceeding RM360 million.

"Totalling RM621 million in GDV, both projects are targeted for launch from the fourth quarter of this year and should strengthen earnings diversification," the firm said.

Inta Bina is principally involved in construction, particularly high-rise and landed residential projects, with more than 165 completed projects worth about RM6 billion.

Through its subsidiary IBEE, the company also provides lift and escalator installation and maintenance services.

Rakuten said the company did not have a formal dividend policy, although its payout ratio had ranged between 33 per cent and 56 per cent over the past five years.

Assuming a 35 per cent payout ratio, it forecasts dividends of 2.4 sen per share for FY26 and 2.8 sen for FY27, translating into prospective dividend yields of 5.9 per cent and 6.8 per cent, respectively.