KUALA LUMPUR (Feb 5): Binastra Corporation Bhd is increasingly positioning itself as a contractor with broader capabilities, as a growing pipeline of data centre projects opens the door for expansion beyond its traditional focus on residential developments, according to analysts.
Research houses noted that although Binastra’s data centre portfolio is still smaller compared with some larger listed contractors, the company has shown a clear strategy to diversify into higher-value and technically demanding projects. Recent contract awards in areas such as sewage treatment infrastructure and solar energy installations further demonstrate its move into specialised construction segments.
Analysts also pointed out that Binastra stands to benefit from the ongoing surge in data centre investments across the region, driven largely by multinational technology firms and hyperscale operators seeking to expand digital infrastructure.
Order Book Reaches Record Levels
Earlier this week, the group announced its sixth data centre-related contract, valued at RM503 million, awarded by Exsim Sri Permai Sdn Bhd for a project in Kuala Lumpur. The latest win has lifted Binastra’s outstanding order book to approximately RM7 billion, the highest level in the company’s history.
Based on an estimated net margin of around 4%, consistent with previous projects involving similar clients, analysts project the contract could contribute roughly RM20 million in net profit over the construction period.
Valuation and Growth Outlook
At a recent share price of RM2.14, Binastra is trading at roughly 13.7 times projected earnings for the financial year ending January 2027. This is below historical valuation levels seen in the construction sector during previous upcycles, leading some analysts to view the current pricing as attractive, particularly given the company’s ongoing diversification into non-residential and infrastructure-related projects.
Broader Impact on Industrial and Commercial Property
The expansion of data centres and infrastructure projects is closely tied to the broader growth of Malaysia’s industrial ecosystem. Demand for industrial land in Selangor and well-connected sites near Kuala Lumpur continues to rise as digital infrastructure operators, logistics firms, and advanced manufacturers seek strategic locations.
This growth also supports demand for supporting real estate, including factory facilities in Puchong, industrial property in the Subang area, and commercial property in KL, where technology firms and service providers often establish regional offices. In addition, areas such as Bukit Jalil are seeing sustained interest in office space as companies involved in technology, engineering, and data operations expand their presence.
As Malaysia strengthens its position as a regional hub for data centres and high-tech industries, contractors with experience in specialised infrastructure projects may find increasing opportunities, reinforcing the link between construction activity and long-term demand for industrial and commercial property across Kuala Lumpur and Selangor.
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