Binastra retains Buy, target price stays at RM2.60
(Calls by analysts tracked by Bloomberg: 7 Buy, 0 Hold, 0 Sell; Consensus target price: RM2.57)
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The Star
18-07-2025
- The Star
Binastra venturing beyond property projects
PETALING JAYA: Binastra Corp Bhd 's appetite to venture beyond its bread and butter residential property projects may pave way for other types of projects moving forward, says RHB Research. This is evident from the group's data centre (DC) projects as well as recent awards related to sewage treatment plants. Citing Binastra's fourth DC job in Cyberjaya, RHB Research stated: 'Timeline-wise, the DC job for MYT DC3 Sdn Bhd is expected to be completed in sections between June and December 2025.' The Cyberjaya project, which is worth RM250mil with a capacity of about 10.5MW, was awarded in February 2025. 'Based on our observation, the progress is currently 25% to 30% and is considered quite commendable as Binastra has managed to build around three floors (the DC is designed to have six floors) in a span of about four months,' it pointed out. Binastra is deploying bubbledecks in the structure of the Cyberjaya DC, which reduces the usage of concrete in addition to quicker installation with less formwork required. Binastra's plan to acquire a 40.8% interest in LF Lansen Sdn Bhd with a call option to increase the stake to 51% for a maximum price of RM45mil, would enable it to have better expertise, particularly in relation to thermal energy storage and distribution DC cooling equipment, and heating, ventilation and air conditioning. 'Based on our estimates, Binastra to date has secured about RM1.2bil worth of DC jobs which represent 18% of the company's RM4.6bil outstanding order book,' RHB Research said The research house remained cognisant of external factors such as the potential artificial intelligence chip curbs imposed on Malaysia by the United States. 'Nevertheless, we take comfort that potential offtakers for the DCs in Bukit Jalil awarded to Binastra are likely corporations based in Asia,' it added. Exsim Development has secured an offtaker (set to be the anchor tenant) – a Japanese Fortune 500 company for extension of the phase one of Exsim's Bukit Jalil DC, while it continues to receive strong interest from a large East Asian enterprise and a major local corporate.
The Star
09-07-2025
- The Star
Trading ideas: Alliance, Binastra, YTL Power, SkyWorld, Ho Wah, Bina Puri, Sapura Energy, NPC, Aeon Credit
KUALA LUMPUR: Here is a recap of the announcements that made headlines in Corporate Malaysia. Alliance Bank Bhd said its rights issue of two new shares for every 17 shares held has been oversubscribed by 55.1%. Binastra Corp Bhd 's wholly-owned subsidiary Binastra Builders Sdn Bhd has secured a RM405mn construction job for The Queenswoodz residential project in Bukit Jalil, Kuala Lumpur. YTL Power International Bhd has invested about RM10bn in AI and AI infrastructure to date and encourages Malaysian companies to invest in AI and leverage the infrastructure. Skyworld Development Bhd is acquiring a 25.9-acre parcel of land in Batu Kawan, Penang, for RM48.51mn as part of a previously announced joint development to build affordable housing units in the state. Ho Wah Genting Bhd has redesignated executive director Lim Wee Kiat as its chief executive officer, effective July 7. Bina Puri Holdings Bhd said two of its wholly owned subsidiaries have been served with winding-up petitions by the government, via the Inland Revenue Board, for failing to settle outstanding tax liabilities. Sapura Energy Bhd will convene an extraordinary general meeting on July 30, 2025, for shareholders to vote on its proposed regularisation plan aimed at restoring the company's financial health and exiting Practice Note 17 status. Sabah-based plantation company NPC Resources Bhd will be delisted from Bursa Malaysia effective July 11. Aeon Credit Service (M) Bhd 's net profit fell by 27.1% to RM77.6mn in 1QFY26 ended May 31, 2025, from RM106.4mn a year ago. This was largely due to a RM15.9mn loss from its associate, Aeon Bank.
Malaysian Reserve
09-07-2025
- Malaysian Reserve
Binastra retains Buy, target price stays at RM2.60
Binastra Corp Bhd clinched a RM405m construction contract from Exsim Jalil Link Sdn Bhd for The Queenswoodz @ Bukit Jalil. This brings year-to-date contract wins to RM1.4b, accounting for 40% of our full year FY26E replenishment assumption. We make no changes to our earnings forecast as this contract win falls within our replenishment assumptions. We reiterate our Buy rating and 12-month target price of RM2.60, based on an unchanged target 16x multiple on FY27E earnings per share. We continue to like Binastra for its strong competitive advantage as a preferred contractor with key clients and superior profit margins. Key downside risks include slower-than-expected order book replenishment, unforeseen delays, and project margin cost pressure. – Phillip Research Sdn Bhd (July 9, 2025) (Calls by analysts tracked by Bloomberg: 7 Buy, 0 Hold, 0 Sell; Consensus target price: RM2.57)
