Secures Mechanical & Electrical Fit-out Works Worth RM256.5mn

BNASTRA Has Secured a RM256.5mn Contract From Exsim Jalil Link Sdn Bhd (EXSIM) for the design, construction, completion, testing, and commissioning of Mechanical and Electrical (M&E) fit-out works at Building 1 and 2 of Data Centre 1 in Bukit Jalil, Selangor. The project will be executed in two phases: phase 1 will cover the second to fifth floors of Building 2, while phase 2 will focus on the third and fourth floors of Building 1.

Although the commencement date has not been specified, phase 1 is expected to be completed within 9 months, with phase 2 targeted for completion 24 months after the project begins.

Our View

This marks the twelfth contract clinched by BNASTRA in FY25, bringing its year-to-date new job wins to RM2.7bn. This achievement accounts for 90.7% of our FY25 new job win assumption of RM3bn. Consequently, BNASTRA’s total outstanding orderbook is estimated at approximately RM3.2bn, equivalent to 7.6x Its FY24 revenue.

Assuming a historical 3-year net margin of 9.6%, the newly awarded project is anticipated to deliver a net profit of c.RM24.6mn over the construction period.

Based on our channel checks, the group is close to finalise another few more projects by year-end, with an estimated combined value of RM300mn to RM400mn. As such, we believe our FY25 orderbook replenishment assumption is well within reach.

Forecast

No Changes to Our Earnings Estimates.

Valuation

We maintain our Buy recommendation on the stock with an unchanged target price of RM2.05, based on 18x CY25 EPS. Our positive stance on BNASTRA is anchored by several key factors: (i) its strong and enduring relationships with major clients, (ii) its strategic position as a key beneficiary of the property sector’s growth momentum, (iii) robust earnings visibility and growth potential, driven by a resilient and expanding order book.

Source: TA Research - 20 Nov 2024