PINTARAS JAYA BHD 9598 PTARAS

SEGMENTAL INFO. TURNOVER OP PROFIT Mkt Cap RM'm : 538.03 SECTOR CLASSIFICATION
(RM 'm) 2013 6M-14 2013 6M-14 Shares (m) : 160.13 MSEB : Construction
Piling, civil eng'g & constr'n 138.0 74.7 49.2 26.0 Par RM : 1.00 DQ : Construction
Manufacturing 34.8 16.6 6.6 3.2 CHAIRMAN: Dr Chiu Hong Keong
Others 0.0 0.0 0.0 0.0 MD : Dr Chiu Hong Keong
172.8 91.3 55.8 29.2 KNOWN MAJOR SHAREHOLDER(S) (As at 20.08.13)
Unallocated income/costs 11.4 2.8 Pintaras Bina Sdn Bhd+ 37.33%
Share of profits of associate 0.0 0.0 Dr Chiu Hong Keong 14.25%
67.2 32.0 Khoo Yok Kee 6.51%
CORPORATE STRUCTURE + Dr Chiu Hong Keong is deemed interested
SUBSID/ASSOC ACTIVITIES %HELD TEL : 03-55691516 FAX : 03-55691517 RATING : 7.5*
Company Piling, civil engin. & bldg constr'n works -
P Megah Superstructure building contractor 100.0
Weekly Price Chart
P Piling Pile driving contractor 100.0 3.50
Prima Pkg Mfg of metal containers 100.0
3.00

PROFILE PTARAS has categorized its core businesses into two 2.50
groupings - Piling, Civil Engineering & Construction Works
2.00
(Piling) and Manufacturing. The Piling segment, in turn,
comprises piling & foundation systems; earth retaining systems, 1.50

sub-structures, basements and earthworks; buildings works and

1.00
civil engineering works. Unlike most listed contractors, PTARAS'
expertise is in the design, construction an installation of piling and 0.50
2011 Apr Jul Oct 2012 Apr Jul Oct 2013 Apr Jul Oct 2014 Apr Jul Oct 2015
foundation systems. Hence, the size of the order book is smaller
than most contractors but the margin has been persistently fatter.
In FY13, the operating margin of the Piling arm soared to 35.6% CRITICAL STOCKMARKET INFORMATION
from an already high 28.6% in the earlier year, boosting the EPS Year Px Range DPS EPS DY PER
to a record high despite lower sales. The management has earlier (RM) (Sen) (Sen) Range Range
revealed that the division's primary strength is the ability to 2004 0.48 0.69 1.8 4.3 3.8 2.6 11.1 15.9
propose suitable and economical designs which minimizes 2005 0.38 0.58 1.8 6.7 4.8 3.1 5.6 8.6
construction time. It also undertakes most assigments with 2006 0.38 0.59 1.8 6.3 4.8 3.1 6.0 9.3
minimal sub-contracting to third parties. In view of the remarkable 2007 0.54 1.11 3.7 12.3 6.9 3.3 4.4 9.1
profit strength of the Piling arm, the profit from the Manufacturing 2008 0.50 0.92 4.5 14.8 9.0 4.9 3.4 6.2
arm has shrunk considerably to 12% of the group's total in FY13. 2009 0.50 0.78 3.8 10.0 7.5 4.8 5.0 7.7
Wholly-owned Prima Packaging spearheads the manufacturing 2010 0.66 1.04 5.6 9.5 8.5 5.4 7.0 11.0
division, producing more than 8m metal pails and cans of various 2011 0.95 1.30 7.6 12.8 8.1 5.9 7.4 10.1
sizes annually to a broad range of industries (paint, chemical, 2012 1.06 1.64 10.0 25.4 9.5 6.1 4.2 6.5
lacquer, motor oil and food). 2013 1.40 3.23 12.5 27.8 8.9 3.9 5.0 11.6
2014 2.60 3.41 12.5 E 26.5 E 4.8 3.7 9.8 12.9
COMMENTS The swing in fortunes of the Piling/Construction 2015 12.5 F 28.0 F
(Piling) arm have been shaping PTARAS' profit picture to-date, 5-Y 39.06 34.49 22.7 13.4 8.0 5.0 6.7 10.4
fueling a more than doubling in the EPS in two years to the then 10-Y 18.47 17.41 16.6 20.6 7.3 4.4 5.8 9.3
record 14.9 sen in FY08 before the subsequent plunge to 9.5 sen
in FY10. Nonetheless, a quick recovery returned the EPS to the BALANCE SHEET (RM 'm) JUN 11 JUN 12 JUN 13
growth path quickly. Between FY10 and FY13, the EPS tripled in Shareholders' Equity 219.84 237.45 271.10
three years to a fresh high at 27.8 sen in FY13. The EPS crept Long Term Assets 123.50 119.11 107.83
upward in FY13 even as sales (-6.7% y-o-y) fell for the first time Current Assets 137.87 182.67 223.33
in three years. The Piling arm continued to anchor growth, Long Term Liabilities 6.23 8.63 9.82
expanding its PBT further (+RM7.0m y-o-y) which drowned the Current Liabilities 35.30 55.70 50.24
decline in the Manufacturing segment (-RM2.3m). At the bottom- PROFIT & LOSS (RM 'm)
line, after largely deducting gain on disposal of available-for-sale Sales 125.94 185.17 172.85
investments, the EPS was up by 10% y-o-y in FY13. The interim EBITDA 45.61 66.84 75.57
and final DPS were raised which also lifted the DPS to a record Interest Expense 0.00 0.00 0.00
level in CY13. The y-o-y profit growth picture could turn in FY14 Profit Before Tax 39.66 57.86 67.15
from an elevated base although the growth remained intact at half- Earnings 32.46 44.90 52.32
time. Six months into FY14, a further improved showing of the KEY STATISTICS & RATIOS
Piling arm kept the EPS on the growth path y-o-y. The half-time NTA/Share (RM) 2.75 2.97 3.39
EPS edged upward y-o-y to 14.5 sen (6.8 sen/1Q & 7.7 sen/2Q), Liq Asset/Share (RM) 0.65 1.05 1.57
fueled mainly by higher progress profits from on-going projects in D/E Ratio 0.00 0.00 0.00
the advanced stages of implementation especially in the 2Q. We Altman's Z-Score 4.77 4.47 4.45
expect earnings to hover at lower levels in the 2H, bearing in Asset Turnover 0.48 0.61 0.52
mind the potential threats from escalating costs of raw materials, Gross Margin 24.13% 29.18% 34.68%
fuel and services and more subdued projects starts in the near Free Cashflow To Capt -5.16% 14.74% 13.66%
term. The potential downside, however, is not expected to be ROE 14.76% 18.91% 19.30%
significant relative to the magnitude of profit increase in recent
years. The DPS should at least maintain at 12.5 sen net. CAPITAL CHANGES & DILUTION
2013 1/1 Bns
On the balance sheet, PTARAS stayed debt-free and cash-rich
despite the generous dividend payout and capacity expansion in
recent years. The amount of cash and near cash on hand was up
by 4% over the last 12 months to RM110m as at 31.12.13 (or
RM0.69/share). The NTA also grew to a record RM1.78.

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