• BNASTRA was awarded a RM328m contract from EXSIM for the main building works of The Vividz in Bukit Jalil
• This brings the YTD contract wins to RM3.1bn, surpassing our FY25 orderbook replenishment assumption of RM3bn
• We raise FY25–27E earnings forecast by 1-7% after raising the orderbook replenishment target. Maintain BUY rating with higher target price of RM2.30

Secured RM328m contract from EXSIM

BNASTRA has won a RM328m contract from EXSIM Bukit Jalil City Sdn Bhd (EXSIM) for the main building works for The Vividz @ Bukit Jalil. The contract entails the proposed development of two 58-storey serviced apartments comprising 1,138 units and seven strata shop units. The contract is for 42 months.

YTD new wins surpassed our assumption, order book reached new heights

With this win, BNASTRA secured RM2.3bn contracts from EXSIM in FY25E, representing 73% of its YTD contract wins of RM3.1bn. This brings the total outstanding order book to an all- time high of RM3.7bn. This implies a strong cover of 8.7x on FY24 revenue, providing earnings visibility over the next 4 years. YTD job wins have surpassed our full-year order book replenishment target of RM3.1bn. In terms of earnings contribution, we estimate this contract will contribute c.RM33m across FY26–28E, assuming a 10% PATAMI margin. We remain confident in BNASTRA’s strong track record in securing contracts, which has consistently exceeded expectations.

Reiterate BUY with a higher 12-month TP of RM2.30

As YTD job wins have exceeded our full-year target, we are raising our earnings forecast by 1–7%, reflecting a higher order book replenishment of RM3.1bn/RM3.5bn/RM3.5bn (previously RM2.5–3bn). Following our earnings upgrade, our 12-month target price is raised to RM2.30 (from RM2.15), based on an unchanged target 18x multiple applied on FY26E EPS. We continue to like BNASTRA for its strong competitive advantage as a preferred contractor with key clients and superior profit margins. Key downside risks include slower-than- expected order book replenishment, unforeseen delays, and project margin cost pressure.

Source: Philip Capital Research - 4 Dec 2024