RHB Investment Bank Bhd (RHB Research) maintained its BUY call on Inta Bina Group Bhd with a target price of RM0.67, implying 81% upside, after the construction group secured a RM115.7 million contract from Sime Darby Property (KL East).
The contract involves the construction of 61 units of three-storey terrace houses and an electrical sub-station in Setapak, Kuala Lumpur, with work scheduled to begin on Aug 24 and completed within 30 months.
RHB Research said the contract marks Inta Bina’s fourth job win for FY2026 and lifts its total wins this year to RM423.7 million. Its outstanding orderbook now stands at RM1.7 billion, providing 2.6 times cover against FY2025 construction revenue.
The research house said Inta Bina also has a tenderbook worth RM3.3 billion and is expanding beyond the Klang Valley, including into Negeri Sembilan through a RM49 million industrial-related property contract. It noted that developers continue to report strong industrial property sales, suggesting sustained expansion by local and multinational companies.
RHB Research made no changes to its earnings forecasts as the latest contract falls within its RM800 million FY2026 job replenishment assumption.
It said Inta Bina is trading at five times FY2027 forecast earnings, below the Bursa Malaysia Construction Index’s five-year average of about 14 times. RHB Research views the discount as unjustified given the group’s steady orderbook replenishment and upcoming property projects with potential gross development value of about RM500 million.
Potential re-rating catalysts include more jobs in Johor, particularly from existing clients, and contracts linked to data centres.
As of 10.18 am, the stock price rose 2.70% to RM0.38.
