Secures RM206.0mn of Building Works

INTA has secured a RM206.0mn contract from Southville City Sdn Bhd. The contract is for main building works, earthworks, piling, substructure works, ancillary buildings, infrastructure works, interior design works, and landscape works for Phase 1 and Phase 2 of the M Sinar Project at Southville City, Bangi, Selangor.

Phase 1 consists of 500 units of 33-storey serviced apartments, and it is expected to take 38 months from the date of commencement to complete. Meanwhile, Phase 2 involves the construction of 499 units of 33-storey serviced apartments in 33 months.

Our View

This is the second construction job secured by INTA in 2023, bringing the total year-to-date contract win to about RM285.9mn. Assuming a gross margin of 10%, the project is estimated to generate RM10.3mn of net earnings throughout the construction period.

Southville City Sdn Bhd is a repeat customer of INTA. Following the job win, INTA’s total outstanding order book now stands at around RM1.1bn, equivalent to 2.4x FY22 revenue.

Impact

Maintain FY23 to FY25 earnings forecasts as the job win is within our FY23 order book replenishment assumption of RM600mn.

Valuation

No change to our target price of RM0.28, based on unchanged 10x CY24 earnings. Maintain a Buy call on the stock.

Source: TA Research - 16 Aug 2023