RHB Investment Bank Bhd maintained its BUY call on Inta Bina Group Bhd with an unchanged target price of RM0.67, implying 72% upside, saying the group’s expanding exposure to industrial projects and solid orderbook support its growth prospects despite first-half earnings falling short of the Street’s forecast.
RHB Research said 1HFY26 core profit rose 13.7% year-on-year to RM21 million, meeting its expectations and accounting for 50% of its full-year forecast but only 28% of consensus estimates.
For 2QFY26, construction revenue grew 8% year-on-year while profit after tax jumped 31%, supported by higher progress billings from ongoing projects. Construction PAT margin also improved to 5.3% from 4.4% a year earlier.
The property segment was weaker, with profit falling to RM1.4 million from RM3.6 million as progressive revenue recognition from the Senuri Residence project eased after reaching a more advanced stage.
Inta Bina had an outstanding orderbook of RM1.6 billion at end-2QFY26, equivalent to around 2.5 times FY25 construction revenue, while its tenderbook stood at RM3.3 billion in early August. The group has secured RM423.7 million in new contracts so far this year.
RHB said Inta Bina’s industrial exposure is becoming increasingly relevant as developers continue to report strong demand for industrial properties from local and multinational companies. The research house highlighted a RM49 million cluster factory contract in Port Dickson secured in March as evidence of its expansion beyond residential construction.
As of 10.37 am, the stock price increased 1.30% to RM0.39.
