HLIB starts Inta Bina coverage with 'Buy' call on earnings growth
KUALA LUMPUR: Hong Leong Investment Bank Bhd (HLIB) initiated coverage on Main Market-listed Inta Bina Bhd with a "Buy" recommendation and a target price of 76 sen, citing stronger construction billings and an expanding higher-margin property business as key earnings drivers.
Hong Leong Investment Bank (HLIB) has initiated coverage on Inta Bina Bhd with a Buy recommendation and a target price of 76 sen. The bank cites stronger construction billings and an expanding higher-margin property business as key drivers of Inta Bina's earnings growth. The target price, based on 10 times Inta's FY27 earnings per share, suggests potential valuation re-rating as the contractor enters a phase of stronger earnings growth.
Inta Bina's order book stands at RM1.6 billion, equivalent to 2.5 times FY25 construction revenue, and is entering the higher growth phase of the S-curve. The bank expects construction billings to accelerate in FY27 and FY28 as more projects progress, and property development is expected to boost earnings due to its higher margins.
Inta Bina's balance sheet shows low leverage, providing capacity for further investments and supporting dividends. The bank forecasts Inta Bina's earnings to grow at 4.0%, 21%, and 29% for FY26, FY27, and FY28, respectively, with a compound annual growth rate of 17% over the three-year period.
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