INTA’s 9MFY23 net profit of RM16.4mn came in within expectations, accounting for 78.2% of our full-year estimate.
A second interim dividend of 0.5sen/share was declared, bringing the YTD dividend to 1.0sen/share. (9MFY22: 0.5sen/share)
YoY, 9MFY23 net profit jumped 103.4% to RM16.4mn, thanks to higher work progress and better gross margin as a result of gradual stabilisation of certain construction materials and labour costs. Meanwhile, the group saw its revenue jump 43.1% to a record high of RM491.3mn.
QoQ, 3QFY23 net profit surged 4.7% to RM6.3mn although revenue was 0.3% lower at RM166.4mn. The stronger bottom line was mainly due to higher gross margin.
Impact
Maintain FY23 to FY25 earnings forecasts.
Outlook
As of end-September 2023, the group’s outstanding construction order book stood at RM1.1bn, translating to around 2.4xFY22 revenue. This could provide earnings visibility to the group for the next 3 years.
Valuation
No change to our target price of RM0.34, based on unchanged 10x CY24 earnings. Reiterate a Buy call on the stock.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....