Summary

• Earnings within expectation. INTA’s 2Q26 core PATMI came in at RM10.4m (-4.2% QoQ, +7.2% YoY), bringing 1H26 net profit to RM21.2m (+7.6% YoY). This accounted for 50.8% and 48.6% of our and consensus full-year FY26f estimates of RM41.7m and RM43.6m, respectively. We deem the earnings within expectation, as stronger construction profitability offset lower property development contributions as projects approached completion.
• YoY. INTA's 2Q26 revenue slipped 3.0% to RM180.5m, dragged by lower contributions from the property development segment (-84.0% to RM4.1m) and the construction segment (-1.3% to RM175.0m). Despite the softer revenue, pre-tax profit and core earnings rose 7.8% and 7.2% respectively, as margins improved by 0.7ppts and 0.5ppts. Construction segment profit jumped 31.2%, driven by stronger contributions from ongoing projects and final account closures. Conversely, property development segment profit fell 61.1% to RM1.4m as projects neared completion and progressive revenue recognition tapered accordingly.
• QoQ. Revenue declined 12.2% while PATMI fell 4.2%, mainly due to lower progressive revenue and profit recognition from the property development segment as projects advanced toward completion. The decline was partly cushioned by stronger construction segment profitability, with segment profit rising 26.5% on stronger contributions from ongoing projects.
• YTD. 1H26 topline grew 1.4% YoY to RM386.2m, while pre-tax profit and core earnings rose 10.0% to RM28.7m and 7.6% to RM21.2m, respectively. Earnings growth was supported by margin expansion, with PBT and PATMI margins improving by 0.6ppts and 0.3ppts to 7.4% and 5.5%, respectively, as construction segment profit grew 12.6% despite broadly flat revenue
• Dividend. Declared a 0.5 sen second interim dividend, payable on 25 September 2026.
• INTA’s outstanding construction order book stood at c.RM1.7bn, up from RM1.5bn at end-Mar 2026, as YTD FY26 job wins stood at RM424.0m. The current order book provides 2.0x cover of our FY26f revenue and visibility over the next 2–3 years, alongside RM8.2m of unbilled property sales. Encouragingly, YTD job wins have already achieved 53% of our RM800m for FY26 annual replenishment assumption, while c.RM3.3bn of tenders remain pending award, supporting continued order book replenishment.
• Outlook. We remain cautiously positive on INTA’s outlook, supported by sustained construction activity across the non-residential and residential segments. The sector is projected to grow c.8.5% in 2026, underpinned by data center and industrial developments in Johor and Selangor, alongside affordable housing demand. Near-term earnings should remain supported by order book conversion and ongoing project execution, though rising construction material, energy, and compliance costs remain key risks to margins.

Valuation & Recommendation

• Forecast. Maintained.
• Maintained BUY recommendation with an unchanged target price of RM0.76, derived by applying an 11x P/E multiple to our mid-FY27f EPS of 6.94 sen.
• Downside risks. Risks to our recommendation include: (i) fluctuations in raw material prices; (ii) INTA’s ability to continue replenish its orderbook; and (iii) regulatory compliance risk.