HLIB keeps 'Buy' on Inta Bina as order book reaches RM1.8bil

KUALA LUMPUR: Inta Bina Group Bhd's latest RM221.1 million contract from Mitraland Holdings is estimated to yield a net profit margin of between five and six per cent, said Hong Leong Investment Bank Bhd (HLIB).

HLIB said the project raises Inta Bina's year-to-date contract wins to RM645 million and its unbilled order book to RM1.8 billion, equivalent to 2.8 times its financial year 2025 (FY25) construction revenue.

"We expect more conversions from its sizable RM3.6 billion tenderbook in the coming months to meet its project win target of between RM800 million and RM900 million for FY26," it said in a note.

The contract covers the main building works for Gravit8 Phase 4, comprising a 39-storey serviced apartment tower with 654 units and a 20-storey office tower.

It also includes car parks, commercial spaces, recreational facilities and a sports complex.

Construction is scheduled to begin on Sept 28.

HLIB maintained its "Buy" call on Inta Bina with a target price of 76 sen, based on 10 times FY27 price-to-earnings ratio.

"We see room for rerating due to its steady earnings growth trajectory and growing contribution from higher-margin property segment," it added.