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THE acquisition of LF Lansen Sdn Bhd is expected to broaden Binastra Corporation Bhd’s service capabilities and improve its competitiveness in bidding for data centre projects. We view the deal as value accretive and at attractive acquisition price-to-earnings multiple of 8x. Maintain Buy rating with higher target price of RM2.60 after rolling forward our valuation ahead of results and earnings adjustment. Our valuation cut reflects a more conservative stance given lingering uncertainties around a weaker economic environment, which may dampen property demand and slow project launches. We continue to like Binastra for its strong competitive advantage as a preferred contractor with key clients. Key downside risks include slower-than-expected order book replenishment, unforeseen delays, and project margin cost pressure. — Phillip Research Sdn Bhd (June 19, 2025)
(Calls by analysts tracked by Bloomberg: 6 Buy, 0 Hold, 0 Sell; Consensus target price: RM2.31)
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