Wins RM96.5mn of Main Building Works 

INTA has secured a new project worth RM96.5mn from Sime Darby Property Sdn Bhd, a subsidiary of Sime Darby Property Bhd. The contract involves the construction of the main building for a 37-storey serviced apartment located at Persiaran Putra Perdana, Selangor. The scope of the project includes the construction of 246 units of service apartments and 62 units of affordable apartments, five carpark levels, residents' facilities, and a guardhouse.

This project is slated for completion within 30 months from 18 September 2024.

Our View

This marks the sixth project secured by INTA in FY24, lifting its year-to-date new job wins to RM1.2bn. Notably, INTA’s total outstanding order book stood at RM1.8bn, translating to 2.8x FY23 revenue.

Assuming an estimated PBT margin of 5.5%, this project should contribute a net profit of c.RM4.0mn throughout the construction period.

Impact

No change to our earnings forecasts, given that the new job wins fall within our FY24 order book replenishment assumption of RM1.6bn.

Valuation

We maintain our target price at RM0.72, 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 orderbook, and (iii) improving profitability. Maintain Buy call on the stock.

Source: TA Research - 6 Sept 2024