Phillip Capital Research Reports

Binastra (BNASTRA MK) - Another DC win added to its orderbook

PhillipCapital
Publish date: Thu, 13 Feb 2025, 10:35 AM
  • BNASTRA secured a RM250m data centre contract from AIMS in Cyberjaya
  • This marks its third DC contract and from a new client. BNASTRA secured this project over Gamuda, the previous incumbent contractor. This contract win brings latest orderbook to RM3.9bn
  • Maintain BUY rating with unchanged target price of RM2.30

Won DC contract from AIMS

BNASTRA announced that it has secured a data centre (DC) project in Cyberjaya worth RM250m from MYT DC3 Sdn Bhd for AIMS Group (AIMS). The project scope covers the construction of a 6-storey DC, including supporting facilities such as a guard house and refuse room. The mechanical, electrical and plumbing (MEP) components will be only partially fitted. The contract tenure spans from Feb25 to Dec25.

Growing presence in DC construction

This marks BNASTRA's third DC contract and its first from an external party beyond EXSIM. We noted that Gamuda was previously the incumbent contractor for AIMS Cyberjaya Block 2 DC. BNASTRA's success in securing this project highlights its growing recognition in DC construction. This latest win brings BNASTRA's latest orderbook to RM3.9bn (9.2x FY24 revenue cover ratio), putting the company well on track to meet our FY26 orderbook replenishment target of RM3.5bn. With this win, BNASTRA has secured RM1.2bn of DC projects to date, accounting for 20% of its total orderbook. We estimate the PAT margin for this contract to be 6%, which is in line with the margin for the earlier EXSIM DC jobs, translating to RM15m in PAT in FY26E. Johor's strong pipeline of contracts, coupled with BNASTRA's growing presence in the region, positions the company well to secure more DC-related projects.

Reiterate BUY with TP of RM2.30

We reiterate our BUY rating and 12-months target price of RM2.30, based on an unchanged target 18x multiple on FY26E EPS. We like BNASTRA for its strong competitive advantage as a preferred contractor with key clients and superior profit margins. Key downside risks include slower-than-expected order book replenishment, unforeseen delays, and project margin cost pressure.

Source: Philip Capital Research - 13 Feb 2025

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