Secures RM348.9mn of Building Works

INTA has accepted a letter of award for a contract worth RM348.9mn from Eco Ardence Sdn Bhd to carry out the main building works for:

(i) Phase 1 – commercial shop lots, office tower, podium car park and Tower A facilities deck, and

(ii) Phase 2 – serviced apartment Tower A & B and Tower B facilities deck.

The project is scheduled to commence on 15 April 2024, with completion expected within 33 months for Phase 1 and 39 months for Phase 2.

Our View

This is the first construction job that INTA secured in 2024, lifting the total outstanding order book to approximately RM1.3bn, equivalent to 2.1x FY23 revenue.

Assuming a PBT margin of 5.4%, this project is expected to contribute RM14.1mn of net profit throughout the construction period.

Impact

We maintain our FY24-26F earnings estimates as the job win falls within our FY24 order book replenishment assumption of RM800mn.

Valuation

No change to our target price of RM0.50, based on unchanged 11x CY25 earnings. We continue to like INTA for the following factors: (i) a direct beneficiary of the robust domestic property sector, (ii) strong earnings visibility backed by a resilient orderbook, and (iii) improving profitability. Maintain a Buy call on the stock.

Source: TA Research - 9 Apr 2024