Binastra hits new high after record-breaking quarter

Construction company Binastra Corp Bhd reached a new record today, propelled by an exceptional second quarter performance. The firm's net profit surged nearly 80% to RM50.6 million, while revenue grew by 66% to RM658.4 million, marking a significant jump from the previous year's figures. Trading at RM2.50, the stock hit a fresh all-time high of RM2.52, reflecting a market valuation of RM2.74 billion.

Binastra's growth is attributed to a multitude of factors, including a surge in construction jobs in the data center and residential property sectors, a notable foray into renewable energy projects, and the acquisition of thermal energy firm LF Lansen Sdn Bhd. The group has also bolstered its order book to RM6.7 billion, ensuring earnings visibility for the next three to four years.

RHB Research highlighted that the company's revenue from data centre and residential property jobs tripled to RM560.8 million in Q2. The research firm anticipates Binastra to secure over RM2 billion in new jobs for FY2027, with RM819.5 million in wins already achieved. The firm has declared a first interim dividend of four sen per share, amounting to RM43.8 million, payable on Oct 16.

RHB Research maintains a "buy" rating on the stock, with its target price set at RM3.38 per share, representing a 35% upside from the current price.