PETALING JAYA: Binastra Corp Bhd’s latest RM303.8mil warehouse contract win is expected to strengthen its foothold in specialised industrial construction and open up further contract opportunities, according to TA Research.
The group’s wholly-owned subsidiary Binastra Builders Sdn Bhd secured the contract from PTT Synexis Sdn Bhd – a wholly- owned subsidiary of PTT Synergy Group Bhd – to construct an automated storage and retrieval system (ASRS) warehouse in Bandar Bukit Raja, Klang.
Scheduled to begin on Nov 11, the construction is expected to be completed within 11 months.
The project covers the piling and construction of a single-storey ASRS warehouse with a mezzanine floor, a three- storey office building, two mechanical and electrical buildings, a five-storey car park, a container yard depot and other ancillary facilities.
TA Research said the award marked Binastra’s fourth contract win for the financial year ending Jan 31, 2027 (FY27), bringing the value of new contracts secured so far in the financial year to RM1.6bil.
With the latest award, TA Research estimates Binastra’s unbilled order book at about RM6.2bil, equivalent to 4.1 times its FY26 revenue and providing near-term earnings visibility.
Assuming a net margin of 5% to 6%, TA Research expects the contract to contribute between RM15.2mil and RM18.2mil in net earnings over the course of the project.
According to TA Research, the warehouse project’s estimated net profit margin of 5% to 6% is below the 8% to 9% that Binastra typically earns on high-rise projects.
“We view the contract win positively given its relatively short execution timeline of less than a year, which should facilitate faster revenue recognition,” said the research house in a note.
TA Research said Binastra’s first collaboration with PTT Synergy broadens its client base. Hence, this could lead to more contracts from PTT Synergy’s estimated RM2bil to RM3bil warehouse pipeline over the next two years.
Meanwhile, Phillip Capital Research said the warehouse project could serve as a reference for Binastra when bidding for future industrial and technology-driven construction projects.
Phillip Capital Research said the project was expected to be carried out in several phases, which could create opportunities for additional contract awards.
The research house kept its earnings forecasts unchanged as the contract was within its assumptions for new job wins.
It maintained a “buy” call and target price of RM3.03 on the stock.