Pintaras Jaya Bhd ('PTaras') is a specialist in geotechnical engineering & construction services. Its range of expertise covers:
• Piling and foundation systems
• Earth retaining systems, sub-structures, basements and earthworks
• Building works
• Civil engineering works
Recent Financial Results
PTaras has just announced its results for QE30/9/2009. Compared to the previous year's corresponding quarter, its net profit jumped 8-fold to RM4.8 million despite a 23%-drop in turnover to RM31.9 million. Compared to the immediate preceding quarter, net profit was lower by 23% on an unchanged turnover.
Table: PTaras' 8 quarterly results
Financial Position
PTaras has a very healthy financial position. As at 30/9/2009, its current ratio stood at 6 times. PTaras has no bank borrowings but cash reserves of RM94 million (or, RM1.18 per share).
Valuation
PTaras (closed at RM1.48 at the end of the session morning) is now trading at a trailing PE of 7.5 times (based on last 4 quarters' EPS of 19.7 sen). If the cash reserves is excluded, PTaras's PE stood at only 1.5 times. A stock cannot get any cheaper than this.
Technical Outlook
From the chart below, we can see that PTaras has broken above its downtrend line at RM1.10 in April. A short-term uptrend line can be drawn, with support at RM1.35-40.
Chart: PTaras' weekly chart as at Nov 9, 2009_12.20noon (Source: Quickcharts)
Conclusion
Based on steady financial performance, attractive valuation & positive technical outlook, PTaras is a good long-term BUY.
8 comments:
i found that ptaras pay a good dividend at around 10% p.a.
am i rite?
Hi Butcher,
Yes. I omitted that point. It paid out 12 sen last year. This year, it is 10 sen. The ex-date is on Dec 16.
alex, u have done a lot to share your knowledge with us.a very good job indeed. i'm here to say thank you
hi alex,
lately i notice gadang surged a lot! do you know what's happening with this company? i rmb gadang use to be 'goreng' stock last time.
thanks
mbge7clt
Dear Alex,
Can advise how to trade Msport at this level RM0.69? Thanks a lot.
Hi Trader,
Thank you for your kind words. I enjoy blogging and I think it is a great learning experience. I have learned a lot because of the feedback that I've received & further research that I've done in order to address new issues or subjects. It is kind of like doing a MBA, with my readers tagging along in my study group.
Hi MaxWealth88,
Gadang broke above its triangle at RM0.65-67 on Nov 5 as well as its intermediate downtrend line at RM0.65. It closed at RM1.04 yesterday. Let it pullback a bit. It has good support at the horizontal lines of RM0.90, RM0.80 & RM0.75- which should be a better entry level after the sharp rally.
Based on the results for QE1/8/2009, Gadang's annualized EPS is about 13 sen. NTA per share stood at RM1.47 as at 31/8/2009. Gadang maybe a "goreng" stock with a bit of substance.
Hi yumi,
Msport at this level RM0.69? I would prefer RM0.65-67.
MSport is a PRC-based company. There were some brouhaha about the red chips stocks listed in SGX because of discrepancy or inaccuracy in the accounts or prospectuses. The same also was reported for some red chips stocks listed in HKEX. I'm very wary about PRC-based companies even though some are trading at undemanding PE multiples.
Some of these precautionary tales may sound like grandmother's stories in the current market.
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