KUALA LUMPUR: Maybank Investment Bank Bhd (Maybank IB) has initiated coverage on Binastra Corp Bhd with a "Buy" call and a target price of RM3.40.
The firm forecasted a three-year forward earnings compound annual growth rate of 21 per cent for the company, assuming annual job wins of RM2.5 billion.
"In our view, Binastra's net cash balance sheet position also gives it the valuable option to raise its dividend payout ratio from more than 50 per cent currently," it said in a note.
"As the executive directors do not receive salaries but are incentivised by dividends as a reward, we believe high dividend payouts are sustainable, which would also benefit minority shareholders."
