Secures RM169.7mn of Building Works

INTA has accepted a letter of award for a contract amounting to RM169.7mn from Next Delta Sdn Bhd, a subsidiary of Avaland Bhd. The award is for the construction and completion of main building works at Tropicana Metropark, Selangor, which entails:

(i) Tower A – 27 levels serviced apartment

(ii) Tower B – 28 levels serviced apartment

(iii) Podium block – level LG1 to level 8

(iv) Guard House

The Project Is Slated for Completion Within 33 Months From the Commencement Date.

Our View

This is the second construction job that INTA bagged in 2024, boosting the year-to-date job wins to RM518.mn. With a projected PBT margin of 5.4%, this latest project is anticipated to contribute a net profit of approximately RM7.0mn over the construction period.

Following the job win, we estimate INTA’s total outstanding order book to be around RM1.4bn, equivalent to 2.1x FY23 revenue.

Impact

We maintain our FY24-26F earnings forecasts 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 Buy call on the stock.

Source: TA Research - 24 Apr 2024