PETALING JAYA: Binastra Corp Bhd
’s recent contract win will boost its outstanding order book to a record high of RM3.7bil.
This contract marks Binastra’s 14th project win this year, bringing its year-to-date new job wins to RM3.1bil.
Binastra recently secured a RM327.7mil contract from Exsim Bukit Jalil City Sdn Bhd for main building and related works.
The project involves the construction of two 58-storey blocks of serviced apartments in Bukit Jalil, Kuala Lumpur.
Analysts are positive on the new job win.
They said the company’s order book of RM3.7bil is equivalent to a strong cover of 8.7 times its financial year 2024 (FY24) revenue, providing earnings visibility over the next four years.
“Based on a historical three-year net margin of 9.6%, the project is expected to deliver a net profit of approximately RM31.5mil over the construction period,” TA Research said.
The research house has also revised its FY25 to FY27 earnings estimates upwards by 0.2%, 2.5% and 1.7%, respectively, following adjustments to its progress billing assumptions as reflective of timely revenue recognition from newly secured contracts.
TA Research also favoured the company for its solid earnings visibility, supported by a resilient order book and robust earnings growth, propelled by continued expansion of its order book.
Meanwhile, Phillip Capital Research remained confident in Binastra’s strong track record in securing contracts, which has consistently exceeded expectations.
“As year-to-date job wins have exceeded our full-year target, we are raising our earnings forecast by 1% to 7%, reflecting a higher order-book replenishment,” it said.
The research house has reiterated its “buy” call with a higher 12-month target price of RM2.30 from RM2.15 following its earnings upgrade.
