INTA Bina Group Bhd securing a contract worth RM52.1 mil is a boost to its orderbook, bringing it up to RM690 mil, according to TA Securities.
The contract, awarded by Eco Majestic Sdn Bhd, is for Inta Bina to build 176 units of double storey houses and two Tenaga Nasional Bhd substations at a gated community at Eco Majestic, a 440.7ha township within the Semenyih-Kajang corridor.
The project has a construction period of 22 months, commencing Sep 3.
“The job win would improve Inta Bina’s job wins year-to-date to RM251 mil, and boost its
outstanding order book to about RM690 mil currently, equivalent to 1.7x of its revenue in its 2019 financial year.”
“Assuming a gross margin of 10%, the project is estimated to contribute RM2.4 mil in net earnings, or earnings per share of 0.4 sen per share, throughout the construction period,” said TA analyst Ooi Beng Hooi.
TA maintains its earnings forecasts up til Inta Bina’s FY22, as the job win is within the research house’s FY20 order book replenishment assumption of RM300 mil.
The research house also maintained its buy call on Inta Bina, along with a target price of 28 sen.
At the end of the trading day, Inta Bina’s shares were last done at a static 25 sen, with 5.2 million shares traded. – Sep 3, 2020
