Wednesday 12 Feb 2025
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KUALA LUMPUR (Jan 23): Binastra Corporation Bhd (KL:BNASTRA) may introduce a dividend payout earlier than expected in FY2025, according to Phillip Capital.

Formerly known as Comintel Corp Bhd, the company has already outlined plans to declare its dividend payout in FY2026, committing to a payout ratio of at least 30% of its annual net profit.

Nevertheless, analysts anticipate that the construction firm could accelerate this timeline, potentially disbursing dividends a year earlier in tandem with its robust earnings outlook.

According to Bloomberg data, Binastra last paid a dividend in 2018.

The builder had been loss-making since FY2018, but returned to profitability in 2022 and has been in the black since.

Phillip Capital, which kept the stock on a “buy” call, cited Binastra’s continued strong contract replenishment, primarily driven by its main clients, including Exsim Development Sdn Bhd and Maxim Global Bhd, as well as upcoming launches in Klang Valley and Johor.

Among research houses covering the stock, all five have the stock on a “buy” call, as analysts bet on further upside. The consensus 12-month target price is RM2.19 with a 24.4% gain from its current price.

Shares of Binastra more than doubled in price in 2024, driven by surging quarterly profits and an expanding orderbook. The company has about RM3.7 billion in outstanding jobs on hand, having secured more than RM3 billion in contracts last year.

The counter reached an all-time high of RM1.85 on January 6, 2025, before easing to RM1.76 at the time of writing.

Phillip Capital also underscored Binastra’s entry into the Johor market, coinciding with the recently signed deal for the Johor-Singapore Special Economic Zone, which is expected to drive property demand.

Exsim is set to focus its launches within this flagship zone, while opportunities in the Klang Valley remain robust, supported by Exsim’s multi-year Central Park Damansara project, which offers RM2 billion in potential contracts.

For the first half of 2025, Binastra raked in RM410.51 million in revenue, a 175.6% jump from RM148.96 million a year earlier, while its net profit surged 189.3% year on year (y-o-y) to RM40.96 million from RM14.16 million.

In 2024, Binastra secured RM992 million in data-centre projects and RM223 million in engineering, procurement, construction and commissioning jobs.

Edited ByIsabelle Francis
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