Inta Bina gains nearly 6% after maiden contract for 2024

KUALA LUMPUR (April 9): Shares in Inta Bina Group Bhd rose for the third straight day in active trade on Tuesday, following news of the construction company securing a RM348.92 million contract.

Inta Bina rose as much as 6% or two sen to reach its intraday high of 36.5 sen, its highest since April 2. The stock closed at 36 sen, valuing the group at RM194.51 million, with 11.33 million shares changing hands — more than 10 times its 52-week average.

“This is the first construction job that Inta Bina secured in 2024,” TA Securities, the sole research house covering the stock, said in a note, and maintained its "buy" call on the stock, with a target price of 50 sen.

The latest contract raised Inta Bina's total outstanding order book to RM1.3 billion, equivalent to 2.1 times revenue for the financial year ended Dec 31, 2023 (FY2023), and may contribute RM14.1 million to net profit throughout the construction period based on a margin of 5.4%.

Year to date, the group’s share price has climbed 38%. Much of the gains have come over the past few weeks, with the counter having risen 22% from March 18’s close of 29.5 sen. Inta Bina last traded above the 30 sen level back in September 2020.

On Monday, the company announced that its wholly owned unit Inta Bina Sdn Bhd had secured a contract from Eco Ardence Sdn Bhd to undertake the main building works for a proposed mixed development project also known as the Maya Integrated Development in Shah Alam, Selangor.

The project’s first phase will comprise the construction of commercial shoplots, an office tower, a podium car park, and the Tower A facilities desk.

Construction of the first phase is slated to commence on April 15, and is expected to take 33 months, concluding on Jan 14, 2027.

Meanwhile, the second phase will encompass the construction of serviced apartments in Tower A and Tower B, along with the Tower B facilities deck.

The second phase is also scheduled to kick off on April 15, and will span 39 months, ending on July 14, 2027.

Inta Bina indicated that working capital for the job is to be financed through internally generated funds and external borrowings.

For FY2023, Inta Bina’s net profit more than doubled to a record high of RM22.87 million from RM9.55 million a year earlier, on the back of higher revenue and an improved profit margin.

The group’s top line increased 39.43% to RM650.11 million versus RM466.27 million previously, mainly from the construction of residential and commercial properties.