Maintain tactical BUY; TP unchanged

Ex- one-off, 1QFY24 core net profit of MYR0.5m made up 8% of our FY24 estimate of MYR6m; we had expected MYR1+m for the quarter. The miss was due to a small loss at the construction ops. We maintain our earnings forecasts for now. Our TP is unchanged at MYR1.70 based on 0.7x FY24E P/B, its -1.5SD of LT mean (also its low in early-2012). With a 12% potential total return (plus 1.3% DY), we maintain our tactical BUY call on the stock.

Small loss at the construction ops

1QFY24 revenue of MYR70m was down a sharp 31% YoY due to the construction ops as manufacturing revenue was flat. The former was due to fewer projects secured and a slow start for the new projects. The construction ops posted a pretax loss of MYR1m, helped by a reversal of provision for rectification cost of MYR3.5m from completed projects. For the manufacturing ops, pretax profit retraced 6% YoY despite flattish revenue due to depreciation cost for a new printing line.

Cautiously optimistic for FY24E

Outstanding orderbook was MYR243m end-Sep 2023 (vs. MYR230m end-Jun 2023), implying MYR71m new jobs in 1QFY24. Management targets more job wins to improve on the utilisation of its construction capacity. For its MY ops, PINT sees some recovery of private sector industrial and residential projects from its tendering activities, while for its SG ops, the demand for bored piling works is expected to pick up as rollout of public sector projects accelerates.

Maintaining earnings forecasts

We make no change to our earnings forecasts for now. The main challenge for PINT remains in orderbook replenishment – we have pencilled in MYR300m in FY24E. Positively, balance sheet remains in a net cash of MYR103m (62sen/shr) end-Sep 2023.

Source: Maybank Research - 28 Nov 2023