KUALA LUMPUR (June 10): Shares of Binastra Corp Bhd (KL:BNASTRA) broke a new record high on Monday, after the company announced a construction contract win worth RM315 million.
Binastra surged as much as 10% or 11 sen to RM1.21 in morning trades, their highest since listing in August 2004. The stock was trading at RM1.16 at 11.15am, valuing the company, formerly known as Comintel Corp Bhd, at RM1.26 billion on Bursa Malaysia.
Trading volume totalled 1.2 million shares so far, three times the 200-day moving average.
Currently, the stock is not covered by any analysts.
Shares of Binastra has climbed 75% since the beginning of this year, amid a broader rally in the construction sector, fuelled by optimism on the roll-out of major infrastructure projects by the government, and private contracts to build everything from homes to data centres.
The company has also reported record high earnings for the year ended March 31, 2024. At RM1.21 sen, Binastra was trading at 24.5 times its price-to-earnings ratio, based on its 12-month earnings per share of five sen, according to Bloomberg data.
Last Friday (June 7), Binastra announced that it has secured a contract worth RM315 million to build two blocks of residential apartments in Bandar Tasik Selatan, Kuala Lumpur.
The company said the contract is deemed as a related party transaction, as its managing director and major shareholder Datuk Tan Kak Seng has a substantial indirect interest in the project’s developer, Pembinaan Serta Hebat Sdn Bhd.
This marks the second project that Binastra has secured, year-to-date. In March, Binastra won a RM369.95 million contract from Exsim Jalil Sdn Bhd to undertake construction and completion of main building works and infrastructure projects in Bukit Jalil, Kuala Lumpur.
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Source: EdgeProp.my
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