Inta Bina to gain from robust property sector

PETALING JAYA: Inta Bina Group Bhd’s shares are trading at a cheaper valuation than industry peers, despite its steady track record of job replenishments, analysts say.

RHB Research said the stock trades at a multiple of 5.4 times next year’s price-earnings ratio (PE), which is a discount to the Bursa Malaysia Construction Index’s five-year mean PE of about 14 times.

“We view this to be unjustified due to Inta Bina’s steady track record of job replenishment (estimated to be at least RM1bil for next year and 2027, along with its upcoming property projects with a potential gross development value of about RM500mil.”

RHB Research said Inta Bina’s results for the first nine months of this year (9M25) were in line with expectations.

Core profit rose 17% year-on-year (y-o-y) to RM28.2mil in 9M25.

The construction arm recorded revenue growth of 6% y-o-y in 9M25 but saw its net profit drop by less than 1% in the same period.

Meanwhile, its property arm saw its net profit triple to RM10.9mil in 9M25 amid stronger recognition of property sales.

RHB Research expects a stronger fourth quarter in light of “more jobs progressing higher along the S-curve”.

“We continue to remain upbeat on Inta Bina’s prospects as we project a three-year earnings compounded annual growth rate of 17% between FY24 and FY27, largely in tandem with its sustainable order book replenishment trend of at least RM1bil over the next three years.”

The research house also noted that Inta Bina has an order book of RM1.8bil as of end-September.

Meanwhile, the builder’s tender book stood at RM4.5bil as of Sept 15, with prospects backed by project launches from renowned developers in the Klang Valley.

Year-to-date, Inta Bina has secured about RM865mil worth of new jobs compared with RHB Research’s FY25 job wins forecast of RM1.1bil.

“We envisage the remaining RM235mil needed to hit our FY25 job replenishment target of RM1.1bil could come from key clients with steady launches, such as Sime Darby Property Bhd and Eco World Development Group Bhd.”

In a separate note, TA Research said it remains positive about Inta Bina’s job replenishment outlook and maintained its assumption of RM1bil in contract wins for FY25.

Year-to-date, Inta Bina’s new job wins have met 86.5% of TA Research’s full-year target.

“We expect contract awards to strengthen in the fourth quarter, consistent with the industry pattern where residential launches typically peak in the second half of the year.

“We continue to favour Inta Bina for being a direct beneficiary of the robust domestic property sector, strong earnings visibility backed by a resilient order book, and improving profitability.”

Both TA Research and RHB Research have “buy” calls on Inta Bina. TA Research has a target price of 88 sen per share, higher than RHB Research’s 81 sen.