M+ Global Research has maintained its Buy call on Inta Bina Group Bhd (INTA) and raised its target price to RM0.78, citing solid earnings visibility from a RM1.6 billion unbilled construction order book and growth prospects from property development, industrial and data centre projects.
Following Inta Bina’s post-second quarter 2026 briefing, the research house said management highlighted progress in diversifying the group’s earnings base, including plans to launch two property developments in the fourth quarter of 2026.
The projects — Seiring Setia in Bukit Jelutong and Aliran Restu in Glenmarie — have obtained their respective planning approvals and are expected to provide the next phase of growth for Inta Bina’s property development business.
M+ Global said the expansion into property development could also support a gradual improvement in group margins as the segment is expected to generate higher margins than its core construction operations.
Tender Pipeline
Inta Bina’s construction business continues to provide strong earnings visibility, backed by an unbilled order book of approximately RM1.6 billion and RM424 million of new contract wins year-to-date in FY2026.
As of July, the group had submitted RM2.5 billion worth of new tenders, taking its total outstanding tender book to RM3.6 billion.
Management remains confident of securing about RM860 million in new contracts for FY2026, broadly in line with M+ Global’s annual order replenishment assumption of RM800 million to RM900 million.
Several bids have already progressed to final negotiations, the research house said.
M+ Global also sees scope for margins to gradually strengthen as Inta Bina’s earnings mix changes.
Besides the increasing contribution from property development, the group’s value engineering and early procurement initiatives, together with variation-on-price mechanisms incorporated into recent contracts, are expected to help mitigate pressures from higher raw material costs.
The research house cautioned, however, that margin improvement is expected to be progressive rather than a sharp near-term increase.
Data Centres Add New Growth Avenue
Industrial and data centre projects are emerging as another source of diversification for Inta Bina.
The group has secured a RM49 million factory construction project at Eco Business Park 7, while its downstream business, IBEE, secured 14 projects worth a combined RM26.4 million during FY2026.
These include a RM1.9 million data centre installation contract in Nusajaya.
IBEE continues to tender for larger data centre projects alongside mechanical and electrical partners, while management is exploring opportunities to deepen the group’s M&E capabilities.
M+ Global said the growing exposure to industrial and data centre projects should broaden Inta Bina’s longer-term construction pipeline and reduce its reliance on its traditional project segments.
FY28 Earnings Seen At RM46.7 Million
Following the briefing, M+ Global rolled forward its earnings valuation base to FY2027 and introduced an FY2028 net profit forecast of RM46.7 million.
This implies a three-year earnings compound annual growth rate of about 5% between FY2025 and FY2028.
The research house raised its target price to RM0.78, based on an unchanged target price-to-earnings multiple of 11 times applied to FY2027 forecast earnings per share of 7.11 sen.
M+ Global’s positive view is underpinned by Inta Bina’s sizeable construction order book, healthy tender pipeline and the expected contribution from its property development business, while its expansion into industrial, M&E and data centre-related projects provides additional avenues for longer-term growth.
