Returns to the black; HOLD maintained

PINT returned to the black with a headline net profit of MYR4m in 1QFY25. This is above our expectation with the beat coming from higher-than- expected construction works recognition and margins. We raise FY25-27E core net profit forecasts by MYR9m-MYR11m. Our TP is unchanged at MYR1.64 as we continue to peg a 0.7x FY25E P/B, its -1.5SD of LT mean (also its low in early-2012). Sustained profitability in the upcoming quarters will be a re-rating catalyst. Maintain HOLD.

Losses at M’sia construction ops tapered

1QFY25 headline net profit included a MYR5m unrealised FX loss on its SGD ops, and a MYR2m gain from the sale of PPE. Excluding that, core net profit was MYR7m (1QFY24: +MYR1m). Construction revenue grew a strong 61% YoY and its PBT margin was 6.6% (vs. a loss in 1QFY24). The improved profitability was contributed by its SG ops, which partly offset its MY ops with construction activities (and losses) tapering as its current projects were nearing completion. Manufacturing revenue grew 19% YoY on higher sales volume, and margins expanded on lower unit production cost.

MYR325m outstanding orderbook

Management expects rising job wins in SG in 2H25, with construction activities improving amid intense competition, high labour costs and labour shortages. The outstanding construction orderbook is MYR325m as at end-Oct 2024, which should support the group’s earnings delivery in FY25E. On that note, the group is of the view that it will remain profitable for the remaining of FY25E.

Raising earnings forecasts; remains in net cash

On adjusting for 1QFY25’s higher construction works recognition and better margins (anticipating no further LAD provisions for its MY projects which are nearing completion), we raise our FY25/FY26/FY27E core net profit to MYR12m/MYR10m/MYR14m from MYR1m/MYR2m/MYR5m. Balance sheet remains healthy, in a net cash (including financial assets ie. marketable securities + equity fund investments) of MYR148m (89sen/shr) as at end-Sep 2024, providing some support to its share price, in our view.

Source: Maybank Research - 2 Dec 2024