INTA has secured a RM43.6mn contract from Eco Majestic Development Sdn Bhd.
The contract is for the main building works for Phase 4 of the gated and guarded residential area, known as Precinct 9 Cheerywood, in Hulu Langat, Selangor. The group will build 162 double-storey terraced houses and an electrical substation.
The project will commence on 1 November 2023, and it is expected to be completed within 20 months from the commencement date.
This is the third construction job secured by INTA in 2023, bringing the total year-to-date contract win to about RM329.5mn. Assuming a gross margin of 10%, the project is estimated to generate RM2.2mn of net earnings throughout the construction period.
Eco Majestic Development 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.
Maintain FY23 to FY25 earnings forecasts as the job win is within our FY23 order book replenishment assumption of RM600mn.
No change to our target price of RM0.34, based on unchanged 10x CY24 earnings. Reiterate a Buy call on the stock.
Source: TA Research - 11 Sept 2023
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