Inta's earnings to recover to pre-pandemic level in 2022

NST Thu, Mar 10, 2022 05:49pm - 2 years View Original


KUALA LUMPUR: Inta Bina Group Bhd's earnings are expected to recover to pre-Covid-19 level in financial year 2022 (FY22) as the company's operations have fully resumed following the relaxation of movement restrictions.

Rakuten Trade said Inta's FY20 and FY21 earnings were greatly affected by the pandemic and movement control order (MCO).

"As for now, management guided that the business operations have fully resumed following the relaxation of movement restrictions, hence, the firm believes earnings to recover to pre-Covid-19 level.

"We are forecasting Inta to register net earnings of RM20.0 million and RM22.1 million for FY22 and FY23 respectively, boosted by higher job recognitions," Rakuten Trade said today.

Based on the historical payout ratio of 45 per cent, the firm expects Inta to pay a dividend of 1.7 and 1.9 sen for FY22 and FY23, translating into yield of 6.5 per cent and 7.1 per cent respectively.

Rakuten Trade said Inta had completed more than 130 building construction projects worth over RM3.5 billion, mainly in the Klang Valley and Johor with residential projects accounting for more than 80 per cent of the company's revenue.

Presently, Inta has an outstanding construction orderbook of RM1.2 billion which provides earnings visibility for the next three years.

On top of that,  Rakuten Trade said Inta had a tender book amounting to RM3.6 billion.

"We peg a target price of 41 sen on Inta with Buy recommendation with a potential up- side of more than 50 per cent and attractive dividend yields going for- ward," it added.

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