Wins RM198.7mn of Building Works

INTA has accepted a letter of award for a contract valued at RM198.7mn from Sime Darby Property (Ara Damansara) Sdn Bhd, a subsidiary of Sime Darby Property Bhd. This contract is principally involved in the construction of the main building for the following at Ara Damansara, Selangor:

(i) 2 blocks of 18-floor apartments - Block A (146 units) & Block C (146units),

(ii) 1 block of 23-floor apartments - Block B (158 units), and

(iii) 6-floor podium for parking

This project will commence on 10 June 2024 with a construction period of 34 months.

Our View

Following the fourth contract that INTA secured in FY24, it brings the year-todate new job wins to RM942.1mn. Assuming an estimated PBT margin of 5.4%, this project is anticipated to contribute a net profit of approximately RM8.2mn throughout the construction period.

Meanwhile, we estimate INTA’s total outstanding order book to be around RM1.8bn, equivalent to 2.8x FY23 revenue.

Impact

We maintain our FY24-26F earnings forecasts as the new job falls within our FY24 order book replenishment assumption of RM1.2bn.

Valuation

No change to our target price of RM0.62, 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 Buy call on the stock.

Source: TA Research - 28 May 2024