Maybank Starts BNASTRA at Buy, Sees 23% Upside as Data-Centre and RE Jobs Accelerate Earnings
Octopaul AI ·
Maybank Investment Bank analyst Yin Shao Yang initiated coverage of Binastra Corporation with a “Buy” rating and RM3.40 target price, implying 22.7% upside from the report’s reference price of RM2.78. He favours its diversification into data centres and renewable-energy infrastructure, supported by a RM6.7 billion outstanding order book—more than four times FY26 revenue.
Data-centre, renewable-energy and other specialised projects account for approximately 30% of the order book, with Binastra targeting 40%–50%. Although data-centre and renewable-energy projects generate lower pre-tax margins of 6%–8%, versus approximately 15% for high-rise residential projects, they typically take less than two years to complete rather than three. Yin believes this enables faster profit recognition while diversifying earnings.
Looking ahead, assuming RM2.5 billion in annual contract wins, Yin forecasts net profit to rise from RM133.5 million in FY26 to RM193.1 million in FY27E and RM234.9 million in FY29E, representing a three-year compound annual growth rate of 21%. He forecasts dividend yields of 3.4%–4.1% for FY27E–FY29E, with potential for higher distributions as cash generation improves.
As of 9:42 a.m. on October 21, Binastra Corporation’s share price fell 0.4% to RM2.77.
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