Posted by lmf_hau > 2013-04-26 02:17 | Report Abuse

Nan Yang Press

鹏发获3600万合约

财经新闻

财经

2013-04-25 20:49

（吉隆坡25日讯）鹏发（Ptaras，9598，主板建筑股）独资子公司———Pintaras Geotechnics私人有限公司，获得Permata Cermat私人有限公司，颁发总值3600万令吉的合约。

鹏发向马交所报备，Pintaras Geotechnics私人有限公司收到对方置期4月22日的授权书，为对方位于吉隆坡满家乐的公寓计划，进行土木工程、打桩和建设防洪堤工程。

上述工程将从今年4月30日启动，为期13个月。鹏发预期，合约未来将为公司贡献盈利。

公司在两周前获Mudajaya企业有限公司，颁发价值2060万令吉，负责捷运计划钻孔灌桩工程。

Link - http://www.nanyang.com/node/528440?tid=761

Posted by kcchongnz > 2013-04-27 19:57 | Report Abuse

Pintaras Vs Kimlun, which is a better investment?

Table 1 below shows the summary of income statement for Pintaras and Kimlun for the last financial year 2012.

Table 1
Income statement
Company Pintaras Kimlun
Revenue 185,172 897273
EBIT 49,734 67836
Net income 42,149 49222
EBIT margin 27% 8%
NI Margin 23% 5%
ROE 17% 23%
ROIC 37% 27%

Kimlun has a turnover of 897 m, 5 times that of Pintaras Jaya. Kimlun’s EBIT of 68m is 36% more than Pintaras. However Kimlun’s Net income is just 17% above Pintaras. That was because Pintaras has a much higher EBIT and net income margin of 27% and 23% compared to the single digit margins of 8% and 5% respectively for Kimlun. ROE of Kimlun is higher at 23% due to its high leverage with a debt of 0.6 times of its equity whereas Pintaras is debt free. However in term of return on invested capital, Pintaras’s 37% is much higher than that of Kimlun at 27%. Both companies return high ROE and ROIC. Which company do you prefer to invest in?

Table 2 below shows the market capitalization and enterprise value of Pintaras and Kimlun.

Table 2
Company Pintaras Kimlun
No. of shares 80,064 229000
Share price 3.07 1.52
Market capitalization 245796 348080
Total debt 0 161439
Excess cash 152,151 36334
Minority interest 0 337
Total Enterprise value 93645 473522

In term of PE ratio, Kimlun’s PE of 7.1 (348.1m/49.2m) is marginally higher than the 5.8 (245.8m/42.1m) of Pintaras. However, measured in term of enterprise value, Kimlun’s 7 times EBIT is 270% higher than that of Pintaras.

So is it clear that which company is a better investment?

Posted by houseofordos > 2013-04-27 20:37 | Report Abuse

KC, Pintaras seems to invest a lot of their free cash back in equity markets instead of putting them into more liquid financial instruments ...this is good in bull market but wont it affect the performance in a bear market...

Questions
1. Do you exclude this fair gain from investments in your EBIT calculations and only show business related earnings ?
2. Looking at their excess cash from Q2 2013 statement it shows short term deposits + excess cash = RM105868, so where did you get your number of 152151 from ?

Posted by kcchongnz > 2013-04-28 07:27 | Report Abuse

house, really appreciate that you have actually looked into the details of what I have analyzed. At least somebody can correct me if I make a mistake, which I think is probable because of so many figures to juggle with. Wish you continue to do so and hopefully we can find some good investments together. This is the reason why I kept on posting some stocks which I think are highly under appreciated by the market, some rare anomalies. But I need confirmation from others, or disputes from others to curb my cognitive bias of self over-confidence, if any.

Yes, Pintaras utilizes part of its FCF to invest in the equity market through a fund manager, I think is Pheim. There is no pbolem with the liquidity of the equity market. When they need money, they just sell some of the shares in the portfolio. The real concern is why Pintaras not distribute all this cash as dividends to shareholders? My response some time ago to somebody as follow:

Quote: [The comments by Value Investor below is also very good.
“I am a shareholder of Pintaras Jaya since 2008 and decided to attend their AGM last year as I wanted to get a "feel" on the major shareholders and management. So far, I have no real issues with the way they have managed the so-called "excess cash". This is a conservatively run company, the Tan Chong/Oriental style of management who would only turn to borrowings as a last resort. As their core competencies are in piling work, there is a need to invest in machineries that cost millions and the management choose to invest using their cash reserves. As a mid-sized "family controlled" construction company, Pintaras has so far been quite fair to minority shareholders, declaring steady, increasing dividends, especially in the last 3 years. Also, there are minimal Related Party Transactions.]
Unquote.

Answers to your questions.

1) Yes, I exclude all gain/loss from equity investments, from its net income. EBIT btw never include any earnings which is not the ordinary business in the first place. Last year there was actually a loss of 4.8 m in its fund. It has some gain/loss in the previous years.

2) Have you include the 46.3m term as "Available for sale investment" in the "non-current assets"? This is the share portfolio value it has which is actually a liquid asset. Correct me if I am wrong.

Posted by houseofordos > 2013-04-28 16:35 | Report Abuse

kc, one thing I m not clear is that if it was really liquid why is it classified as non-current asset ? the value of such investments will move according to overall market... just feel that the excess cash would have been better used as dividends or stock buybacks to increase shareholder value...
http://biz.thestar.com.my/news/story.asp?file=/2012/4/23/business/11141970

Btw, I dont seem to come up with same PBT and net income value as you. I m assuming your numbers are from 30/6/2012 report, unadjusted for equity investment gain/loss

PBT = 48793
Net profit = 35826

How did you exclude the gain/loss from investments from your PBT numbers and come up with the final net income number ? For example in 30/6/12, excluding those fair value gain/loss of investments :-
Gain on disposal of financial assets = 5855
Fair value loss on finanical assets = -11309

Excluding this loss, PBT would have been 54247.

Posted by Alex Chan > 2013-04-28 16:51 | Report Abuse

danger point is they are losing in their shares investment or it is another way to take money out of the company. The shares are not disclosed to the shareholders. By right,they should have 200mil cash

Posted by Alex Chan > 2013-04-28 16:57 | Report Abuse

if they want to buy share, why not buy back their own?

Posted by houseofordos > 2013-04-28 17:19 | Report Abuse

Alex, kind of agree with you on the point regarding the transparency of those investments...
Also having equity investments is not equivalent to liquid cash in FD or short term financial instruments as in a bear market, cash is king while equity investments will generally move down... so in that situation, where is the advantage of holding equities when you cant take advantage of available oppurtunitues unless you sell low...

Posted by kcchongnz > 2013-04-28 17:43 | Report Abuse

house, in my previous analysis above, the income statement is at the last financial year of 30/6/2012 whereas the financial position is at 31/12/2012. Hence the cash and cash equivalent is as at 31/12/2012.

I agree that that investment in equity should not be classified as "non-current asset" in their financial results as it is liquid. But if you look at its annual report, it is actually in the "current assets" which is the right classification.

Yeah agree with you that Pintaras should return more cash to shareholders as it has awful lot of cash. But I guess management thinks otherwise as I posted above the view of a shareholder named valueinvestor. But Pintaras is not that stingy as some other Chinaman companies as they still distribute 20 sen dividend last year, or a yield of 7%. Notice that dividend distribution increases every year too.

I read the article you appended from Star. I feel it is silly for the writer to say that "Pintaras Jaya Bhd (PJB) performance will likely stay in line with the broader stock market should the equity markets perform well." Pintaras lets a fund manager to manage this money, 38m as at 30/6/2012. If the return is say 10%, it is only 3.8m. Pintaras PBT of its ordinary business was 54m.

For my income statement, I ignored gain/loss for the fund for reasons I have stated before. If you compare yours and my calculations on the net income, we are not far away; mine was 42m and yours is 43m. If you compare EBIT, we can be very much different because I was making adjustments to separate,besides the gain/loss in equity investment, I was trying to separate other items in the "other incomes" which include interest income from its cash, some other non-operating gain/loss by peeping through its cash flow statement. I don't want to elaborate more because it may be messy and involve some art of adjustments.

Regarding Alex's claim, I don't know it is just a wild accusation, or does he have any proof. My guess is the earlier.

Posted by houseofordos > 2013-04-28 18:38 | Report Abuse

kc, after further analysis and per your explanation , perhaps the impact of the fund performance on its bottom line is not that significant..

Posted by houseofordos > 2013-05-20 11:34 | Report Abuse

wow... RM4.12... KC, finally the waiting pays off...

Posted by kcchongnz > 2013-05-20 12:50 | Report Abuse

houseofordos,

I suggest you look into more details of this company niche in its industry, its operating performance in earnings, cash flows and balance sheet. It is also a company that continues to enhancing shareholder value. and best of all, it is trading at very low valuation, even at this price of 4.12.

In a bull market, a rising tide lifts all boats. But only a well built boat will always stay afloat and continue to sail to promised land.

Posted by houseofordos > 2013-05-20 13:18 | Report Abuse

kc, nicely put...basically i have some aversion to construction companies in Malaysia due to the way contracts are awarded with corruption and all the under table deals... however pintaras would be an exception...

I wonder if the price moving up is caused by any funds buying in

Posted by faberlicious > 2013-05-20 13:31 | Report Abuse

kc,promised land, in NZ ? Congrats.

Posted by kcfan > 2013-05-20 13:36 | Report Abuse

Congrats.Good picks on this long term stable fundamental base company.You are best.

Posted by kcchongnz > 2013-05-20 13:44 | Report Abuse

faberlicious,
My promised land is Malaysia. I can see the future getting brighter, in 5 years or may be 10 years time, if you know what I mean. NZ is just a temporary home, a place where we can bring up our children in a conducive environment, and providing them with all the options and opportunities, especially in good education. But for me, my home is in Malaysia.

houseofordos, I doubt foreign fund is in this stock. It is really too illiquid for them, not until if they enlarge their capital, which I think is on the way, and investors realized the potential of this company. Yeah, you are rightfully wary about construction stocks which mostly have to depend on government contacts, corruption practice, cyclical downturn in the industry, etc etc. I was in this industry, exactly in this foundation industry specialized by Pintaras and know the ins and outs of the business. My former company which is the only few listed construction companies first listed in KLSE but it is gone PN17, like many others. It is not easy. But Pintaras is an exception. It will continue to strive.

Posted by faberlicious > 2013-05-20 16:16 | Report Abuse

kc,i tumpang your "Noah's Ark" Pintaras go to paradise.Lucky me,manage to grab some @ 3.05. Mucho gracias.

Posted by faberlicious > 2013-05-20 16:23 | Report Abuse

Oops sorry,should be muchas gracias(thank you)

Posted by kcchongnz > 2013-05-20 16:53 | Report Abuse

faberlicious,

Good on you.

Posted by houseofordos > 2013-06-11 11:38 | Report Abuse

wow break RM5

Posted by Whei Wong > 2013-06-12 08:11 | Report Abuse

@kcchongnz, they've increased significantly, still good value to collect?

Posted by kcchongnz > 2013-06-12 08:33 | Report Abuse

Yes, the share price of Pintaras has surged ahead too fast, too furious in such a short time. You can see the return of investing Pintaras in the short and long term below:

Pintaras 5.01 12/06/2013
Period 2-week 6-month 1 year 2-year 3 year 4 year 5 year
Price 3.68 3.14 2.80 2.35 1.60 1.20 1.40
Return of stock 36.1% 59.6% 78.9% 113.2% 213.1% 317.5% 257.9%
CAR 304505% 154.6% 78.9% 46.0% 46.3% 42.9% 29.0%
Dividend 2.7% 4.0% 6.8% 6.4% 6.3% 10.0% 7.1%
Stock price appreciation 304503% 150.6% 72.1% 39.6% 40.0% 32.9% 21.9%

Is it still a good investment?

If you want to talk about its share price, I really don't know. There is two school of thought; one is the theory of mean reversion and the other is momentum investing. The former suggests that prices and returns eventually move back towards the mean or average. The latter may mean an uptrend will continue. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values. So which one do you believe in?

So may be the best thing to do is to do some valuation using various methods to see if the price of Pintaras has surpassed its intrinsic value; and what is the margin of safety if it hasn't.

Posted by MG9231 > 2013-06-12 09:45 | Report Abuse

I owned shares of this co since 2007,I think corporate activities such bonus or share split is brewing looking at the fact that the co proposed to enlarge its authorised share capital and the recent increased of its sahres.It appears to me that the insider(I mean those who help doing M&A ) has acted earlier than the public

Posted by kcchongnz > 2013-06-12 09:58 | Report Abuse

MG9231,
By looking at the rise of stock price of Pintaras recently which is rising unabated, it does appear to me something is brewing for this company. Yes, it has proposed its enlargement in share capital some time ago. I tend to believe in your proposition that those with insider information, viz the investment bankers are acting in advance of any corporate exercise.

By the way, as you are a long time investor in this company, appreciate if you could continue to contribute to this thread.

Posted by MG9231 > 2013-06-12 10:10 | Report Abuse

yap, I tend to be the readers as my writing is bad and looking at the fact if i write somwthing wrong, i may be "hantam" by other readers and i can't defends my view.

Posted by 1234abcd > 2013-06-26 00:03 | Report Abuse

something is brewing. it could be a 1 for 1 bonus or a share split of 2 :1. hohoho lailo

Posted by iafx > 2013-06-26 08:51 | Report Abuse

finally...?! :D

Posted by smalltimer > 2013-07-02 13:34 | Report Abuse

water is receding di

Posted by kcchongnz > 2013-07-06 18:38 | Report Abuse

"PTARAS has confirmed a “Pennant” chart pattern with its 10 sen gain yesterday (RM5.01 closing price). We believe the stock is poised for yet another up-leg given the increased trading volume and bullish key indicators (MACD, RSI, Stochastic). We believe that the share price could potentially extend its gains towards RM5.97, while the downside appears capped at RM4.75."
Kenanga research and investment, 12 June 2013

Pintaras, a foundation specialist contractor's share price has run up from about RM3.00 six months ago to the close of yesterday at RM4.78, or a gain of 60%. That was a huge gain in such a short period of time. Value investors would more inclined to think that there should be a pull back of the share price in accordance to the mean reversion theory. So do I normally believe.

However, a review of Pintaras's financial performance for the trailing twelve months ended 31/3/2013 shows that there may be more to the story.

Pintaras's return of invested capital and return of equity are at very high numbers of 37% and 19% respectively. The big difference in ROIC and ROE is mainly due to the large amount of cash and cash equivalent it holds at 153m, or RM1.91 per share, and zero debt.

However, at such good numbers in operation efficiencies, at $M4.78, it is only trading at a PE ratio of just 7.6. The "cheapness" of Pintaras is more reflected in its market enterprise value of just 3.6 times earnings before interest and tax, or a fantastic earnings yield of 28%!

So in my opinion and according to the Magic Formula, even though its price has run up by 60% in such a short time to RM4.78, it is still grossly undervalued.

No, this is just my personal opinion to share, not peddling of this share though I still own it as a substantial part of my portfolio. Please make your own judgement. Opposite opinions, preferably with reasoning are very much welcomed.

Posted by tonylim > 2013-07-06 19:12 | Report Abuse

Kcchong how big is the distributble reserves assuming a bonus issue or split is up in their sleeves

Posted by kcchongnz > 2013-07-06 19:48 | Report Abuse

Pintaras has 184m retained earnings as at 31/3/2013. Outstanding number of shares is 80m.

I always opine that bonus and share split do not add value to the shareholders. How can a cake cut into pieces worth more than a whole cake? I know i know, that is just my opinion which differs from other investors. People will chase up the share because of the bonus issues.

To me, the value of Pintaras lies in its continued improvement in its business in growth, earnings, operational efficiencies and cash flows.

Posted by tonylim > 2013-07-06 20:19 | Report Abuse

Fair comment my friend.
I heard his junior, high qualified like you, is kinda running the show.

Tropicana attracted institutions after new blood pumped in to run the show.

Posted by tonylim > 2013-07-06 23:30 | Report Abuse

I bght 3.08 to 3.12 but sold all at 20 per cent.
Time to take a fresh look next week.

Posted by tonylim > 2013-07-06 23:56 | Report Abuse

I made less. But at that time was good profits.
Market is also there. Would you believe if I enter at this price next week, but go with the flow of the market makers.

My entry and exit is very swift, different from yours, so is kcchong's

Posted by tonylim > 2013-07-06 23:58 | Report Abuse

Market is *always there,. from monday to friday

Posted by tonylim > 2013-07-07 00:10 | Report Abuse

Fat cat, my big regret was not buying to keep Inari at 35sen to 40 sen based on 2 reasons.

1. I thought there was a need to buy big sums of loan stocks to subscribe to its rights.

2. 2 characters in Inari which I dont like , esp lo kok kee (of Icap fame) who are also stakeholders of insas. share price of insas, like mulpha has been in doldrums for ages. Lo and Insas guys used to pump and dump their stocks.

Then again their character may have changed now.

Posted by 9010 > 2013-07-21 17:46 | Report Abuse

Anyone has any idea what their order backlog is like?

Posted by Superman2 > 2013-07-31 08:33 | Report Abuse

PINTARAS JAYA BHD
Stock Name PTARAS
Date Announced 30 Jul 2013
Category General Announcement
Reference No MI-130730-60364


Type Announcement
Subject MULTIPLE PROPOSALS
Description PINTARAS JAYA BHD (“PINTARAS” OR THE “COMPANY”)

(I) PROPOSED BONUS ISSUE OF 80,064,000 NEW ORDINARY SHARES OF RM1.00 EACH IN PINTARAS JAYA BERHAD (“PINTARAS SHARES” OR “SHARES”) ON THE BASIS OF ONE (1) PINTARAS SHARE (“BONUS SHARE”) FOR EVERY ONE (1) EXISTING PINTARAS SHARE HELD AT A DATE TO BE DETERMINED AND ANNOUNCED LATER;

(II) PROPOSED ESTABLISHMENT OF NEW EMPLOYEE SHARE OPTION SCHEME (“ESOS”) INVOLVING UP TO 15% OF THE ISSUED AND PAID-UP SHARE CAPITAL OF PINTARAS TO ELIGIBLE DIRECTORS AND EMPLOYEES OF PINTARAS, AND ITS SUBSIDIARIES; AND

(III) PROPOSED SHARE BUY BACK BY PINTARAS OF UP TO 10% OF ITS OWN ISSUED AND PAID-UP SHARE CAPITAL


On behalf of the Board of Directors of Pintaras, RHB Investment Bank Berhad wishes to announce that the Company proposes to undertake the following:
(i) proposed bonus issue of 80,064,000 ordinary shares of RM1.00 each in Pintaras on the basis of one (1) Bonus Share for every one (1) existing Pintaras Share at a date to be determined and announced later;

(ii) proposed establishment of a new employee share option scheme involving up to 15% of the issued and paid-up share capital of Pintaras to eligible directors and employees of Pintaras, and its subsidiaries; and

(iii) proposed share buy-back of its ordinary shares of RM1.00 each by Pintaras of up to 10% of its own issued and paid-up share capital. Please refer to the attachment for further details of the announcement.

This announcement is dated 30 July 2013.

Posted by winman 1 > 2013-07-31 08:45 | Report Abuse

congrats to those who bought in, next time will try to follow such good tips and for good tips we always put this in mind, wah caya lah

Posted by iafx > 2013-07-31 08:47 | Report Abuse

FINALLY, waited so long already! :D :D

Posted by tonylim > 2013-07-31 09:25 | Report Abuse

if got split betterer

Posted by kcchongnz > 2013-07-31 09:31 | Report Abuse

Finally? What finally? Even before this surge, the price has already appreciated by 63%. With the surge this morning, it has appreciated by 67% since 6 months ago! Six months too long to wait for 63% gain?

Remember, no liquidity, no analysts follow, not followed by equity tracker, useless cash sitting in balance sheet, not good dividend, etc macham macham.

Posted by iafx > 2013-07-31 09:36 | Report Abuse

yup, if not waiting for the bonus issue, PTARAS is yet another stagnant crap. $6 should be no problem, then can consider sell 50%... after 4 years of waiting, finally can collect return. wooohoooo.... :D

Posted by kcchongnz > 2013-07-31 09:41 | Report Abuse

stagnnant crap? 4-years of waiting?

Before this announcement of bonus issue, the 4-year total return is 318%, or a compound annual rate of return of 38% compared to 10% of KLSE! i challenge you to find another one as good as Pintaras in Bursa and shows us.

Pintaras 5.01 12/06/2013
Period 2-week 6-month 1 year 2-year 3 year 4 year 5 year
Price 3.68 3.14 2.80 2.35 1.60 1.20 1.40
Return of stock 36.1% 59.6% 78.9% 113.2% 213.1% 317.5% 257.9%
CAR 304505% 154.6% 78.9% 46.0% 46.3% 42.9% 29.0%
Dividend 2.7% 4.0% 6.8% 6.4% 6.3% 10.0% 7.1%
Stock price appreciation 304503% 150.6% 72.1% 39.6% 40.0% 32.9% 21.9%

Posted by ppfoong > 2013-07-31 10:16 | Report Abuse

To be fair, it is followed by Dynaquest.

Posted by garygee77 > 2013-07-31 10:19 | Report Abuse

this is a good stock,I enter since almost 2 years back as in 1.70.If not mistaken dividen per year is 2-3 times..Now dunno whats the new target price will fly...

Posted by kcchongnz > 2013-07-31 10:37 | Report Abuse

Fundamental analysis from an individual investor.

http://klse.i3investor.com/blogs/kianweiaritcles/34039.jsp

Posted by iafx > 2013-07-31 10:45 | Report Abuse

div wise except 2012, each year once only, average since 2008 is 15c. tks to the bonus issue, the share price has hiked so many level up... target fully hit, time to... :D yr $ yr choice!

Posted by kcchongnz > 2013-07-31 11:06 | Report Abuse

"target fully hit"? what do you mean? What are you basing on? PE, EV/Ebit, dividend yield, price-to-book, price-to-FCF? What is it? Can share ah?

Posted by iafx > 2013-07-31 11:07 | Report Abuse

ask yr thick face ghost lor