It is the only two listed piling and foundation specialists in Malaysia stands out for its consistent earnings growth, high margins and cash rich balance sheet.
Revenue almost doubled from rm105.7 million in FYJune 2010 to rm201.9 million in FY2014 while net profit rose from rm20.7 million to rm54.2 million over this period. Operating margin and net margin averaged some 33.34% and 25.35%.
Its earnings uptrend remains intact. In 1HFY2015, revenue grew a strong 51.5% year on year to rm138.3 million. Net profit expanded by a lesser 9.9% to rm26.7 million.
It was awarded a rm21.4 million contract to undertake the extension of diaphragm wall and bored pilling works for a proposed commercial and residential development at Icon City Phase 1. The contract is for period of 12 months from 21 Jan 2015.
Moving forward, the 1663km Pan Borneo highway and the 56km Klang Valley MRT Line 2, costing rm23 billion and rm27 billion are slated to commence construction in 2015. Pintaras would be one of the key beneficiaries given its solid track record in piling and foundation works.
Pintaras is liked for its exposure to the construction sector and attractive valuations. It is trading at 2.02 times book value whereas Econpile is trading at 2.94 times book value. Pintaras’ margins are higher.
Additionally Pintaeas has a history of rewarding shareholders with dividends. Payput average about 40% for the past three 3 years.