Inta Bina Group Bhd’s latest RM221.1 million construction contract from Mitraland Holdings has lifted its year-to-date contract wins to RM645 million and its unbilled order book to RM1.8 billion, according to Hong Leong Investment Bank (HLIB) Research.
In a research note, HLIB said the contract for Gravit8 Phase 4, also known as Novva, marked Inta Bina’s fourth project secured from Mitraland over a 14-year working relationship.
The development comprises a 39-storey serviced apartment tower with 654 units and a 20-storey office tower, alongside car parks, commercial spaces, recreational facilities and a sports complex.
Construction is scheduled to begin on Sept 28, with the works divided into two sections. The first is expected to be completed by September 2028, while the second is targeted for completion in January 2029.
HLIB estimates that the project could generate a net profit margin of approximately 5% to 6%, broadly in line with Inta Bina’s existing margin profile.
The research house also noted that the contract includes a variation-of-price mechanism for selected building materials, offering some protection against unexpected increases in construction costs.
HLIB said Inta Bina’s RM1.8 billion unbilled order book now represents approximately 2.8 times its financial year 2025 construction revenue, providing earnings visibility over the coming years.
The group also has a tender book of RM3.6 billion, with several bids understood to be at advanced stages.
HLIB expects further contract conversions in the coming months, which could put Inta Bina on track to achieve its FY2026 order book replenishment target of RM800 million to RM900 million.
The research house maintained its earnings forecasts as the RM645 million secured year-to-date remains within its full-year replenishment assumption of RM860 million.
HLIB reiterated its BUY rating and target price of RM0.76, based on 10 times projected FY2027 earnings.
It said Inta Bina’s earnings growth prospects could be supported by its expanding construction order book and a growing contribution from the higher-margin property segment.
Potential upside catalysts include entry into the data centre construction market and merger and acquisition opportunities, while key risks include a prolonged Middle East conflict and delays in planned property launches.
