Inta Bina shares touch new record high on Gamuda job win

• Shares of Inta Bina have surged over 80% so far this year amid broader rally in the construction sector fuelled by optimism of major infrastructure projects rollout by the government and private contracts to build everything from homes to data centres.

KUALA LUMPUR (June 5): Shares in Inta Bina Group Bhd (KL:INTA) touched a new record high on Wednesday, after the construction company announced that it had secured a RM111.98 million contract.

Inta Bina climbed as much as 14.12% or six sen to 48.5 sen. At the closing bell, the counter was four sen or 9.41% higher at 46.5 sen, valuing the company at RM253.5 million on Bursa Malaysia. 

The counter was also active with 36.9 million shares changing hands, double its trading volume’s 200-day moving average of 2.14 million shares. 

The contract is expected to contribute a net profit of about RM4.6 million through the construction period spanning 23 months based on a 5.4% profit-before-tax margin, said TA Securities Holdings, the only research firm covering the stock. The house also maintained a "buy" recommendation on Inta Bina.

Shares of Inta Bina have surged over 80% so far this year amid a broader rally in the construction sector fuelled by optimism of major infrastructure projects rollout by the government and private contracts to build everything from homes to data centres.

The latest project, which involves the construction of 174 semi-detached houses, would be Inta Bina’s fifth contract secured so far this year. New job wins totalled RM1.1 billion year-to-date.

TA Securities estimates Inta Bina’s total outstanding order book to be around RM1.8 billion, equivalent to 2.9 times of the group’s FY2023 revenue.

Inta Bina is now expected to win a total RM1.6 billion worth of new jobs for the whole of 2024, TA Securities said after raising its target from RM1.2 billion following the recent strong order book replenishment.

The house also raised its earnings forecast for Inta Bina by 1.8% for 2024 and 13.6% for 2025 and 27.3% for 2026. This year alone, Inta Bina could rake in RM26.6 million in net profit, TA Securities said and raised its target price to 71 sen from 62 sen, which values the company 11 times its forward earnings.

The research firm continues to favour Inta Bina as the company is a direct beneficiary of the robust domestic property sector while citing strong earnings visibility backed by a resilient order book and improving profitability.

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