Inta Bina Group Bhd is positioned for a potential re-rating supported by consistent earnings growth and an increasing contribution from its higher-margin property development segment, according to research from Hong Leong Investment Bank (HLIB).
The construction and property developer has secured RM424 million in new contracts year to date, expanding its construction order book to RM1.6 billion. The company also holds a substantial tender book valued at RM3.6 billion, with an additional RM400 million in new contract wins anticipated before year-end. This would align with management’s full-year target of RM800 million to RM900 million in new contract awards.
Despite the robust order book growth, HLIB noted that revenue from construction remained subdued in the financial years 2024 and 2025, as many newly secured projects are still in the early stages of construction. The research house expects construction billings to accelerate through fiscal years 2027 and 2028, as the majority of ongoing projects reach around 50% completion and move up the typical S-curve of construction progress.
On the property front, Inta Bina is set to launch two new development projects — Seiring Setia with a gross development value (GDV) of RM200 million and Aliran Restu with a GDV of RM300 million — between the fourth quarter of fiscal year 2026 and first quarter of fiscal year 2027. These launches follow the success of the group’s initial project, Senuri, located in Selangor. The new developments are expected to boost property billings from the second half of fiscal year 2027 onward and to gain further momentum into fiscal year 2028.
HLIB highlighted that the property segment contributes higher margins to the group, with double-digit net profit margins compared to the mid-single-digit margins typical of the core construction business. Inta Bina is also exploring opportunities with major developers for joint ventures and development rights, aiming to expand its property footprint beyond landbanking.
The company maintains a solid financial position, reporting a net gearing ratio of just 0.09 times and a net debt balance of RM24 million as of June 2026. This financial stability affords Inta Bina capacity to fund its property development ventures while continuing to distribute dividends, historically paying out about 30% to 40% of net profit in recent years.
HLIB’s forecast projects earnings growth of 4%, 21%, and 29% for fiscal years 2026, 2027, and 2028, respectively, driven by increased construction billings as projects advance and higher property earnings following the launch of its new developments. The research house has initiated coverage with a "buy" rating on the stock, setting a target price of 74 sen.