000The Group's revenue of RM134.1 million in current financial quarter outperformed the preceding financial year's corresponding quarter of RM101.0 million by 33%. The higher revenue recorded in the current financial quarter was primarily due to increased construction activities and higher sales achieved by manufacturing division. However, the higher contribution from both the construction and manufacturing division was pared down by a net loss of RM3.6 million recognised on quoted investments. Profit in the preceding financial year corresponding quarter included a total gain of RM7.1 million on quoted investments. Construction Division The construction division achieved a notably higher revenue of RM123.2 million compared to RM92.5 million in the preceding financial year corresponding quarter. The higher revenue recorded in the current financial quarter was primarily due to greatly increased construction activities as many of the on-going projects were in the advanced stages of implementation. Despite the 33% increase in revenue, the profit increased marginally by about 5% or RM0.8 million as compared to the previous corresponding financial quarter of RM16.9 million, primarily due to higher provision for rectification cost of RM2.9 million recognised in current financial quarter from Singapore's operation. Manufacturing Division Sales from the manufacturing division grew by 28% to RM10.9 million in current financial quarter as compared to RM8.5 million in the same financial quarter last year, while PBT rose significantly by 125% to RM2.1 million from RM0.9 million recorded in the same financial quarter last year. The significant growth in profitability of this division is due to improved revenue and higher selling prices in current financial quarter, resulting in better cost absorption, operating efficiency and margins00000000000000000000000000000000000000000000000000000000000000000000000
If you look at the top 30 shareholders, you don't see a lot of foreign funds & big institutions. 1,000,000 shares will get you to position 12 in the list.
healthy order book. Cost of raw materials & foreign workers should be under control by now. New contracts should be able to past the higher cost to end users.
The construction division recorded a lower revenue of RM67.9 million in 4Q2023 compared to RM101.8 million reported in 4Q2022. The decline in revenue was mainly due to decreased volume of construction works as a result of fewer projects secured. The PBT for current financial quarter has actually improved as compared to the previous corresponding quarter as the latter included a one-off gain of RM17.0 million from disposal of asset. Excluding the one-off gain, the profit improved by about RM0.6 million or 60%.
Prospects for the Next Financial Year ending 30 June 2024
While sentiment for the local construction sector remains lacklustre, we believe that the coming year would register some improvements due to the tender awards for the MRT 3 project. Furthermore, recent news on the potential revival of the KL-SG HSR project could also be seen as a potential catalyst for the construction sector. This, coupled with the lower raw material prices and normalising of labour shortages would further support the ongoing recovery of the sector. However, political stability, delays in the implementation of mega-infrastructure projects and a weak turnaround of the property sector continue to bear on the construction sector's recovery.
Price competition in Singapore continues to tighten the construction sector's profitability. The Group remains selective in its project tenders as it expects the current competitive market conditions to persist for the remaining months of year 2023. We expect an improved new projects work flow in second half of year 2024 with the impending commencement of projects such as Changi T2 extension, T5, Marina Bay Sands and Resorts World extension.
Going into financial year 2024, our group construction order book of about RM230 million provides some clarity for financial year 2024. The challenge for us is to generate reasonable margins from projects secured and rebuild our order book with profitable projects.
Our can manufacturing business is expected to improve as tin-plate prices are trending lower. We have successfully installed a new printing line in April 2023. With better production efficiency and enhanced quality, we would be better positioned to stave off competition and increase our market share.
Revenue is still low but at least will be stable for the coming months from the reasonably high order book. We are not out of the wood but can see some light now.
Core business profit margin picking up slightly. Baring any unforeseen circumstances, it should continue to improve.
Cash pile (short term deposit, investments in money market and bank balances) is RM138mil as compared to Rm127mil last year despite the losses incurred due to high depreciation of Rm35mil?
IMHO, pintaras is in a much better position to capitalise on the recovery of the construction sector if any. Moreover, Singapore although is more competitive, it is a much safer place to be.
Bought Pintaras for the 1st time since selling it in 1999! Judiciously avoided this since it was first recommended by a fair weather friend @ above $2.20 in 2013...& resisted buying...until today!
Pintaras Jaya incurred a loss in 2023 but this is due to a “perfect storm” of lower revenue and higher costs. Its performance in Malaysia over the past few years was affected by the slowdown in the property and construction sector. As such the bulk of the contribution over the past few years has been from its Singapore operations. https://i.postimg.cc/DzJd8mDL/Pintaras-valuation.png As the leading foundation and sub-structure contractor in Malaysia, I expect the Group to rebuild the Malaysian business. When this happens, I expect the market to re-rate it.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
danchong
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Posted by danchong > 2021-11-13 17:17 | Report Abuse
broke Rm3 with improving volume