Binastra's share price rises on strong Q2 profit, revenue growth

KUALA LUMPUR: Construction firm Binastra Corporation Bhd's share price rose in early trading on Friday after its net profit for the second quarter improved to RM50.61 million while revenue doubled to RM658.38 million.

At 9.55am, Binastra's share price rose one sen to RM2.50, with 620,500 shares traded.

In a filing with Bursa Malaysia yesterday, the group said the increases in profit and revenue were mainly driven by its construction segment.

Meanwhile, RHB Investment Bank Bhd (RHB IB) maintained its "Buy" call on Binastra, with a higher target price of RM3.38 from RM3.10, implying 36 per cent upside and a circa four per cent financial year 2027 (FY27) forecast yield.

The bank said Binastra's first-half FY27 core profit of RM85.7 million, up 60 per cent year-on-year, accounted for 50 per cent of its full-year estimate and 49 per cent of market consensus estimate.

"Given that its second-quarter FY27 forecast core earnings were at a record high of RM50.6 million, we envisage the remaining quarters to be at similar or higher levels in light of a further ramp-up in billings from its RM6.7 billion outstanding orderbook," RHB IB said in a note.