Bags RM112.0mn of Main Building and Associated Works

INTA has secured a letter of award from Gamuda Land Sdn Bhd, a subsidiary of Gamuda Bhd, for a contract value of RM112.0mn. This contract is for the proposed development of 174 units of semi-detached houses, which include:-

(A) Phase 1
(i) 124 units of semi-detached houses
(ii) 1 unit of guard house
(iii) 1 unit of JMB management office, and
(iv) 2 units of TNB substation

(B) Phase 2
(i) 50 units of semi-detached houses.

This project will commence on 4 June 2024 with a construction period of 23 months.

Our View

This marks INTA's fifth contract in FY24, bringing the year-to-date new job wins to RM1.1bn. This achievement also represents 91.7% of our initial FY24 new job win assumption of RM1.2bn. Assuming an estimated PBT margin of 5.4%, this project is anticipated to contribute a net profit of approximately RM4.6mn throughout the construction period.

Meanwhile, we estimate INTA’s total outstanding order book to be around RM1.8bn, equivalent to 2.9x FY23 revenue.

Impact

Following the new strong order book replenishment in 1HFY24, we have revised our FY24 order book replenishment assumption from RM1.2bn to RM1.6bn. As a result, our FY24/25/26F earnings forecasts have been adjusted higher by 1.8%/13.6%/27.3%, respectively.

Valuation

Following the earnings revision, we raised our target price to RM0.71, premised 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 order book, and (iii) improving profitability. Maintain a Buy call on the stock.

Source: TA Research - 5 Jun 2024