Pintaras Jaya may be a familiar name but probably not many investors are aware that the company, with a market cap of RM187m, had RM107m net cash in the bank as at 31 March 2011. Also, spurred by a robust property market and the numerous upcoming mega structures in Malaysia, we recently paid its management a visit. We believe that Pintaras Jaya, a piling/foundation systems specialist, is likely to be securing more contracts soon. It is kicking off its FY12 with an orderbook of about RM100m. The company already spent a record RM30m capex in FY11 and is expected to allocate another RM20m for FY12, which gives us an inkling of busy business in the years ahead. Based on its 9MFY11 results, core earnings are expected to up 27.5% in FY11 and we are assuming an organic FY12 core earnings growth of 15%. Pintaras Jaya’s about 4x FY11 and FY12 PERs (current market cap minus RM88m FY12 cash and cash equivalent) is attractive. Besides, the stock is also trading way below some of the largest construction companies’ FY12 average 15x PER, and those of the smaller construction companies such as Ahmad Zaki, Kimlun and Bina Puri. It is also still trading below its RM2.62 NTA/share as at March 2011.
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