KUALA LUMPUR (Feb 20): RHB Research sees Inta Bina Group Bhd’s (KL:INTA) fourth quarter core earnings coming in between RM7 million and RM11 million — ranging from 15% lower and 33% higher compared with quarterly earnings from last year’s corresponding period.

The lower end of the range comes on the back of new job wins of RM865.2 million that missed RHB Research’s initial assumption of RM1.1 billion in 2025, the research firm noted in a report on Friday.

“In our view, the lower-than-expected job replenishment level in FY25 may have been due to slower launches by property developers that were likely in a wait-and-see mode following the expansion of the Sales and Services Tax (SST).

“Nonetheless, it has been made clear that construction of residential buildings within a mixed development project is exempted from service tax. Therefore, we foresee delayed launches likely being carried forward to CY26 — potentially entailing tenders for residential projects,” said RHB Research in the report.

Inta Bina is expected to announce results for its fourth quarter ending Dec 31, 2025 (4QFY2025) on Feb 25.

The research house reduced Inta Bina’s FY2025 and FY2026 earnings forecast by 3%, further reducing FY2027 estimates by 5% following the expansion of the sales and services tax (SST).

‘’We envision Inta’s 4QFY25 earnings growth to come mainly from its property development arm, which contributed 13% of the total revenue in 3Q25,’’said the research house in a note on Friday.

RHB Research highlighted that Inta Bina's primary growth engine comes from its Senuri Residences development, which carries a total gross development value (GDV) of RM205 million.

This flagship project has hit a major milestone with 100% of its open-market units sold, and as construction hits full speed, it is now a major contributor to the group’s revenue, noted RHB Research.

In late 3QFY2025, Inta Bina bolstered its project pipeline by securing two residential contracts totalling RM107.12 million from Eco Majestic to construct a gated and guarded project in Beranang, Selangor.

As of end September 2025, Inta Bina’s outstanding orderbook stood at RM1.8 billion, translating into an orderbook-to-revenue cover ratio of 2.8 times, based on its 2024 construction revenue. Meanwhile, the company is tendering for RM4.5 billion worth of jobs as of Sept 15, 2025.

Its growth outlook is backed by upcoming project launches from property developers such as Sime Darby Property Bhd (KL:SIMEPROP) and Eco World Development Bhd (KL:ECOWLD) within the Klang Valley.

According to Bloomberg, all out of five research houses have a “buy” call on Inta Bina. The average 12-month target price is 85 sen.

As at market close on Friday, the company ended 1.16% lower at 42.5 sen, giving it a market value of RM261.3 million.