Inta Bina Bhd's proposed transfer to Main Board coupled with its Shariah-compliant status are deemed strong price catalysts. Recommend BUY with target price of RM0.37 based on 9.6x PER FY19 of Bursa Malaysia Construction Index. 

Inta Bina is helm by Mr. Lim Ooi Joo (MD) and Mr Teo Hock Choon (Deputy MD), whom each has over 30 years of experience in the industry. With over 25 years of proven track record, Inta Bina has completed more than 110 construction projects worth over RM2.3b, predominantly in the Kiang Valley and Johor. 

Inta Bina's unbilled order book currently stands at around RM749m providing earnings visibility overthe next 2 years. Finalisation of its proposed transfer to the Main Board should set Into Bina on a stronger footing to secure larger projects from its well-known customer base namely Eco World, Tropicana, UEM Sunrise, Gamuda, Engtex to name a few. 

More than 18% of the IPO proceeds has been utilised for its CAPEX mainly to purchase additional aluminium system formwork ("ASF"), which is part of the Industrialised Building System. ASF is more cost effective for mass buildings construction with repetitive design, which is in line with the Company's plan to penetrate into the affordable housing segment. 

Since listing, Inta Bina has pared down its debt thus its gearing ratio has had improved from 0.56x (FY16) to 0.12x (FY17). Net profit has been growing steadily at a compounded annual growth rate of circa 14% overthe past 4 years. Based on prevailing order book, we expect EPS to achieve double digit growth of around 15% in FY19. 

Source: Rakuten Research - 6 Aug 2018