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Drop in QR is due to poor RHB results and abnormally high taxes. Its other divisions delievered strong performances and they are undergoing strong expansion this year. Drop in share price is not due to QR as QR is actually better than expected. It is due to profit taking and selling on news phenomenon.
Revenue increased by 25% this QR, how is that a poor showing?
Dont fall for value trap. Water tariffs hike increases PBA net profit but this is purely an accounting phenomenon and not real shareholder returns. The reason water tariffs is increased is not to enrich shareholders, but to carry out capex to increase water treatment and distribution capacity. The profits is needed to fulfill social obligations first and foremost. If you invest in PBA purely for profits, RM 1.04 is a bad price to pay.
Aneka and Econpile are getting good construction orders. With the Malaysian piling industry picking up, this will also benefit both Singapore and Pintaras as more projects to soak up capacity
You cannot lump Ptaras with the rest of property and construction stocks. Ptaras has its own factors that is driving the increase in its share. It is dirt cheap, commodity prices increase that hurt Ptaras profits is subsiding, great management, and above all, it is simply oversold since the commodity prices shock. Whether the property/construction industry is going to boom, is another issue. And yes, if these external factors become positive, Ptaras will also benefit immensely. This is the reaso
Penang LRT, MRT, HSR, Johor property market getting vibrant due to RTS and spillover effect from land scarced Singapore, recovering property market in Malaysia, incoming new projects in Singapore, data centre and industrial projects boom. These are the upside factors to Pintaras. At what risk? RM 100 million ++ net cash, good management with ability to navigate contruction cycles, great track record in piling, with unbroken profitability record. Low margins wont last forever, this is the bottom. It can go up to RM 2, no sweat.
Why bet on Pintaras? Because it is a risk free bet. Why risk free bet? Because construction projects are coming and Pintaras has the strongest balance sheet to tide through good and bad times. If construction turns out to be dissapointing, we dont lose money, if the opposite happens, we make a bang. Why wont we lose money? Pintaras is showing losses in recent quarters, but these are caused by the Malaysian operations. Its SG operations, which is the main business, is still fairly profitable. It is also has a big cash pile and good dividend track record.
Why must Pintaras go up to RM 2? Incoming large projects including MRT3, Penang Lrt, strong property launches
Besides, HSR is not out of the cards yet. How does this benefit Pintaras? Pintaras doesn't need to gain any contracts from the above projects to benefit from them. Major projects will soak up excess piling capacity from the market and may even cause a shortage, thus driving up piling rates. These developments represent multi year tailwind, which bodes well for both the sentiment and fundamentals of Pintaras.
If you are given unlimited free lottery tickets with a 50 50 chance to get a RM 100 price and get paid RM 40 for every ticket you will take, how many lottery tickets will you get? This is the question we have found ourselves looking at in Pintaras Jaya. Risk free value is close to RM 2, while we can hold it at RM 2 and wait for big projects coming in and it may go up to RM 3 or may not if there are no big projects. Either way, we still make RM 0.40 for every RM 1.60 we invested in
