Binastra's order book continues to strengthen
This is based on an assumption of a net margin of 6%, said TA Research and Phillip Capital Research.
The group secured a RM268mil contract from TNJ Development Sdn Bhd, a subsidiary of CPI Land, for the main building work for the Tuan Heritag3 Residency condominium development in Segambut, Kuala Lumpur, with a gross development value (GDV) of RM670mil.
However, Phillip Capital Research said this is lower than the historical average of between 9% and 10%, reflecting a greater reliance on subcontracting as Binastra preserves internal capacity for its expanding pipeline of projects in Johor.
The research house remained positive about the prospects for the group's order book replenishment, supported by up toRM7bil of committed project launches from major clients in Johor, scheduled from 2026 to 2027.
The research house said it was encouraged by this latest contract win, which not only strengthened the group's order book but also brings in a new client that intends to launch projects with GDVs of RM1bil in this year and exploring expansion opportunities into Johor.
The research house believes this could pave the way for future project wins.
The award brings year-to-date job wins to RM976.9mil, representing 28% of its RM3.5bil order book replenishment assumption for 2026.
This raises Binastra's order book to RM4.3bil, implying a 4.5 times cover of its revenue for this year.
TA Research said it believes the group is well-positioned to secure additional contracts from CPI Land's RM1bil GDV pipeline.
RHB Research said the group's order book is worth RM4.3bil and provides earnings visibility for the next four years.
The research house said it believes Binastra's likely job wins will come from the southern region.
For instance, one of Binastra's clients, Exsim Development Sdn Bhd, has a few other land parcels in Johor Baru near the New York Hotel and along Jalan Lumba Kuda, and projects there could have a cumulative GDV of over RM3bil or a potential construction value that may exceed RM1.5bil.
Maxim Global Bhd , another key client, has acquired a 6.5 acre plot of land in Taman Pelangi for future development.
TA Research, Phillip Capital Research and RHB Research maintained their 'buy' calls on the stock with target prices of RM2.39, RM2.30 and RM2.21, respectively.
Both Phillip Cpital Research and RHB Research made no changes to their earnings estimates with the latest job win.
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