[%PEFo%] 
Research by TA
Buy – TP of MYR1.18

“Riding on the Wave of Sarawak’s Infrastructure Boom” 

Following a productive discussion with Ibraco management, we are optimistic about the group's future earnings prospects. Key takeaways from the meeting include: 1) FY23 sales figure would have been higher, 2) FY24 sales target of RM400mn is conservative, 3) remain active in bidding despite having a record construction orderbook and 4) building material division to complement its core property and construction division. With solid unbilled sales of RM244.8mn, a promising future GDV of RM5.6bn and a record outstanding construction orderbook of RM1.2bn, we forecast Ibraco's net earnings to expand at a 5-year CAGR of 24.2% to RM69.5mn in FY26f. We maintain our Buy recommendation on Ibraco with a higher TP of RM1.18/share, based on SOP valuation. 

Analyst(s):
Thiam Chiann Wen
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$KLSE-IBRACO 
Research by TA
Buy – TP of MYR1.18

“Riding on the Wave of Sarawak’s Infrastructure Boom” 

Following a productive discussion with Ibraco management, we are optimistic about the group's future earnings prospects. Key takeaways from the meeting include: 1) FY23 sales figure would have been higher, 2) FY24 sales target of RM400mn is conservative, 3) remain active in bidding despite having a record construction orderbook and 4) building material division to complement its core property and construction division. With solid unbilled sales of RM244.8mn, a promising future GDV of RM5.6bn and a record outstanding construction orderbook of RM1.2bn, we forecast Ibraco's net earnings to expand at a 5-year CAGR of 24.2% to RM69.5mn in FY26f. We maintain our Buy recommendation on Ibraco with a higher TP of RM1.18/share, based on SOP valuation. 

Analyst(s):
Thiam Chiann Wen
cwthiam@ta.com.my