Binastra building strong future with expanding project pipeline
The firm remains optimistic about the company's prospects, projecting a three-year compound annual growth rate of 132 per cent for its financial year 2025 (FY25) to FY28 earnings.
"This is largely in tandem with its anticipated order book growth, backed by the expansion of its key clients beyond the Klang Valley," it said in a note.
Binastra Corp has secured RM977 million in new jobs year-to-date for FY26, against the firm's internal job win target of RM4 billion (FY25 job replenishment of RM3.1 billion).
"We envisage the remaining approximately RM3 billion that Binastra needs to secure (to hit the RM4 billion new job win target for FY26) to partly come from five mixed-development projects awarded by its key clients."
Based on RHB Research's estimates, there could be another circa RM500 million in potential jobs on the remaining two plots of land at Jalan Kebun Teh.
Exsim Development Bhd also has several other land parcels in Johor Bahru near New York Hotel and at Jalan Lumba Kuda, which could yield a cumulative gross development value of over RM3 billion, or a potential construction value exceeding RM1.5 billion, it said.
Binastra Corp recorded a first quarter FY26 core profit of RM25.1 million, meeting 19 per cent of RHB Research's and the street's full-year projections.
"No changes to our earnings estimates as we deem results to be in line with our expectations. Therefore, we maintain our 'buy' call on the stock, and our target price of RM2.64 remains," it added.
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