KUALA LUMPUR: Binastra Corporation Bhd is expected to register earnings of RM84.9 million and RM103 million for its financial years ending January 31, 2025 (FY25) and January 31, 2026 (FY26), respectively, following its ability to secure high-value projects and demonstrate strong earnings growth.
Rakuten Trade Sdn Bhd said Binastra's current order book stands at approximately RM2.1 billion, providing strong earnings visibility over the next three to four years.
The company has secured significant contracts, including a RM370 million project for Kingswoodz and a RM315 million project at Bandar Tasik Selatan.
"With 18 ongoing projects as of June 2024, Binastra continues to capitalise on its robust pipeline of construction activities.
"The strategy to expand its portfolio further underscores the company's vision in sustaining its growth momentum within the construction sector," it said in a note.
It added that the outlook is positive for the company as the domestic construction industry is experiencing a resurgence, fueled by government infrastructure projects and private sector-led developments.
The stabilisation of construction raw material prices and the resolution of labour shortages have further bolstered the industry's prospects.
Rakuten said the company's strong client relationships have positioned it to benefit from recurring projects and long-term partnerships, ensuring a steady stream of revenue in the coming years.
"Binastra aims to continue its growth trajectory by pursuing additional contracts and is focusing on integrating sustainability practices into its operations, aligning with the increasing emphasis on environmental, social, and governance (ESG) factors.
"By embracing ESG initiatives, particularly in affordable housing development, Binastra not only addresses environmental and social challenges but also enhances its long-term economic viability," it added.
It gave a "buy" call on the stock with a target price of RM1.71