Newsbreak

• Post-2Q26 briefing highlights. Management highlighted progress in broadening INTA’s earnings base, with two property developments targeted for launch in 4Q26. Seiring Setia in Bukit Jelutong and Aliran Restu in Glenmarie have obtained their respective planning approvals, with the two projects set to provide the next leg of growth for its property development arm.
• The Group also highlighted further traction in its downstream business. IBEE has secured 14 projects worth RM26.4m in FY26, including a RM1.9m data centre installation job in Nusajaya, while management continues to explore opportunities to deepen its M&E capabilities.

M+ Global View

• Solid earnings visibility. We remain positive on INTA's earnings visibility, backed by c.RM1.6bn of unbilled construction order book and RM424m of YTD FY26 job wins. As at July 2026, the Group had submitted RM2.5bn of new tenders, bringing total outstanding tenders to RM3.6bn. Management also remains confident of securing c.RM860m of new jobs for FY26 in line with our annual replenishment assumption of RM800-900m, supported by several bids already in final negotiations.
• Margin expansion scope. More importantly, we see scope for gradual margin improvement as the earnings mix evolves. While construction remains the core earnings driver, the Group expects a growing contribution from its higher-margin property development segment, with two new projects targeted for launch in 4Q26. At the same time, its value engineering and early procurement initiatives, alongside the variation-on-price (VOP) mechanism incorporated into recent contracts, should help mitigate raw material cost pressures. We therefore expect margins to improve progressively rather than materially step up in the near term.
• Industrial & Data Center diversification. Growing exposure to industrial and data center projects provides longer-term diversification for its construction pipeline. INTA has secured a RM49m factory construction project at Eco Business Park 7, while IBEE has landed a RM1.9m data center installation job and continues to tender for larger data center projects alongside M&E partners.

Valuation & Recommendation

• Forecast. We roll over our earnings base to FY27f and introduce our FY28f earnings estimates at RM46.7m, implying a three-year CAGR of 5% from FY25 to FY28f.
• Maintain BUY with a higher TP of RM0.78. We reiterate our BUY recommendation on INTA with a higher TP of RM0.78, derived from an unchanged target P/E multiple of 11x to our FY27f EPS of 7.11 sen.