At first glance, the result appeared to be quite good that showed great
improvement compared to corresponding quarter last year. But in fact,
it's showing a worrying sign.
Revenue increased around 18% to RM57 million, but there was not much
improvement on operating level. Bear in mind that there was an one-off
expanse of RM4.0 million on ESOS implementation last year. If excluded
the one-off expanse, PBIT grew a bit only.
It showed that its operating profit margin had dropped. Management
stated there it was due to on-going projects are in the completion
stages of implementation as well as higher depreciation charge as a
result of capex spent earlier.
In terms of prospects, it may not sound so good from the management's point of view neither.
All this while, I normally will record the contract sums and duration announced by the group on the Bursa website.
Based on my record, the group only left 3 on-going projects on hands.
The group really need to be more aggressive to bid more contracts, but
first the overall construction industry must be in good condition and
hopefully, the group able to secure few more contracts to replenish its
order book in short while.
11th
Malaysia Plan will be announced in 2H15, the group is hopeful to secure
some jobs, likely from MRT2 and LRT3 projects as well as property
development jobs.
And what's more, hopefully the group does not need to lower its profit
margin in order to secure more contracts as high profit margin Pintaras
exhibited all this while served as plus point for the investors to
demonstrated its competitive advantage over its competitors.
Let's see how the group moving forward.
PTARAS (9598) - Pintaras Jaya: Q3 result update
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