KUALA LUMPUR (Sept 18): Binastra Corporation Bhd (KL:BNASTRA) eked out a new all-time high in Friday trading while analysts raised their outlook after the construction firm’s latest results.
The second half of the financial year ending Jan 31, 2027 (2HFY2027) could be even stronger, putting Binastra firmly on the track towards record earnings, according to the latest consensus estimate. Berjaya Research raised its target price to RM3.25, the highest among nine houses covering Binastra.
“We expect new order wins to gain further traction, particularly from non-residential projects such as data centres, further diversifying its project portfolio,” the research house said.
Binastra added two sen or 0.8% to RM2.52 on Friday, giving the builder a market capitalisation of about RM2.7 billion.
Shares of Binastra have gained 18% in value since the year began thanks to contract news flows that included jobs related to high-growth data centres. The company has also ventured into constructing renewable energy projects that are now rapidly booming in Malaysia.
Binastra now has outstanding orders totalling RM6.7 billion, which will keep generating revenue for the company over the next three to four years.
Analysts tracked by Bloomberg are unanimously bullish on Binastra with an average target price of RM3.05, indicating potential upside of up to 21% in the next 12 months from its last price.
Further, Binastra is diversifying its project pipeline into structurally supported segments, including solar and data centre projects that offer stronger demand visibility, improved pipeline depth and greater earnings diversification over time even with lower margins, Mercury Securities noted.
“This gradual shift away from more concentrated legacy exposure is expected to enhance earnings quality and reduce cyclicality,” the house added as it kept its target price at RM3.12.