Hello, fellow investors and market watchers! Today, we’re diving deep into the latest financial performance of PINTARAS JAYA BERHAD (189900H) for the nine months ended 31 March 2025. This report offers a compelling look at a company navigating both growth opportunities and persistent market challenges. While the overall picture shows impressive profit growth, a closer look reveals the intricate dynamics of its core businesses and investment activities.
The standout highlight? Pintaras Jaya recorded a phenomenal 877% surge in Profit Before Tax (PBT) for the nine-month period, reaching RM26.9 million! This remarkable turnaround, coupled with the recent payment of a 5 sen per share dividend, certainly catches the eye of any discerning investor.
But what’s driving this performance, and what challenges lie ahead? Let’s break down the numbers.
Core Financial Highlights: A Tale of Growth and Nuance
Nine-Month Performance (31 March 2025 vs. 31 March 2024)
The cumulative nine-month period paints a strong picture of recovery and growth for Pintaras Jaya. The Group’s revenue saw a significant uplift, primarily propelled by robust construction activities in Singapore and improved contributions from its manufacturing division.
Current Period (9M FY2025)
Revenue: RM274,724k
Profit Before Tax (PBT): RM26,925k
Profit for the Period: RM21,497k
Basic Earnings Per Share: 13.0 sen
Preceding Period (9M FY2024)
Revenue: RM212,675k
Profit Before Tax (PBT): RM2,756k
Profit for the Period: RM147k
Basic Earnings Per Share: 0.1 sen
This translates to a 29% increase in revenue and an astounding 877% jump in PBT. However, it’s worth noting that these impressive gains were partially offset by fair value losses of RM2.3 million on the Group’s quoted investments during the period.
Quarterly Performance (Q3 FY2025 vs. Q3 FY2024)
Focusing on the latest quarter (31 March 2025), the Group continued its positive trajectory compared to the same quarter last year.
Current Quarter (Q3 FY2025)
Revenue: RM83,831k
Profit Before Tax (PBT): RM7,015k
Preceding Quarter (Q3 FY2024)
Revenue: RM80,807k
Profit Before Tax (PBT): RM5,144k
Revenue increased by 4% and PBT by 36% quarter-on-quarter. This improvement was largely driven by a higher contribution from the construction division, though it was somewhat tempered by a lower contribution from the manufacturing division and weaker performance from investment activities.
Quarter-on-Quarter Comparison (Q3 FY2025 vs. Q2 FY2025)
When comparing the current quarter to the immediate preceding quarter, Pintaras Jaya saw a slight increase in revenue but a noticeable dip in PBT.
Current Quarter (Q3 FY2025)
Revenue: RM83,831k
Profit Before Tax (PBT): RM7,015k
Immediate Preceding Quarter (Q2 FY2025)
Revenue: RM82,538k
Profit Before Tax (PBT): RM13,694k
Despite a 2% revenue increase, PBT was 49% lower. This reduction in profit was primarily due to a fair value loss of RM3.10 million on quoted investments in Q3 (compared to a gain of RM0.90 million in Q2), coupled with higher losses recorded by the Malaysian construction division.
Segmental Performance: The Engines of Growth
Construction Division
The construction division has been a key driver of the Group’s success, particularly its Singapore operations. For the nine-month period, construction revenue surged by 35% to RM234.9 million, turning a PBT loss of RM10.8 million last year into a profit of RM22.6 million this year. This strong performance was largely attributed to greatly increased construction activities in Singapore.
However, the Malaysian construction operations faced headwinds, having completed all projects with no new contracts secured during the period. This led to losses in the Malaysian segment as fixed costs, notably labor and depreciation, did not reduce proportionately.
Manufacturing Division
The manufacturing division also contributed positively. For the nine-month period, revenue grew by 3% to RM39.9 million, and PBT rose by 21% to RM6.9 million. This improvement was mainly due to higher sales volume and lower unit production costs.
In the latest quarter, however, the manufacturing division experienced an 11% decrease in both revenue and PBT compared to the same quarter last year, primarily due to lower sales volume.
Financial Health Snapshot
As of 31 March 2025, Pintaras Jaya maintained a healthy financial position. Total assets stood at RM542.8 million, with total equity slightly increasing to RM394.9 million. Net assets per share improved marginally to RM2.38 from RM2.36 at the end of the last financial year. The Group’s cash and cash equivalents remained robust at RM141.2 million, providing a strong liquidity buffer.
Risks and Prospects: Navigating the Headwinds and Opportunities
Pintaras Jaya operates in dynamic markets, and its future performance will hinge on its ability to navigate various opportunities and challenges:
Malaysian Market Realities
The report highlights that the Malaysian economy has been adversely impacted by factors such as “Trump tariff imposition,” creating significant uncertainties for businesses. This has led to a notable drop in tendering activities and new contract awards for piling works. Competition remains intense, pushing tender rates lower. This underscores the challenges faced by the Malaysian construction division, especially with completed projects and no new ones secured.
Manufacturing Outlook
On the manufacturing front, the Board anticipates stable domestic demand for metal container operations, which should help maintain sales revenue. However, margins could face pressure due to rising raw material costs, exacerbated by anti-dumping duties on tinplate imported from China and Korea. This is a key area to watch for profitability.
Singapore: The Growth Engine
In stark contrast to Malaysia, construction activities in Singapore continue to be resilient. This is driven by the ongoing rollout of mega infrastructure projects, including Changi Airport Terminal 5, HDB housing projects, and industrial building developments. While manpower shortages remain a significant industry challenge, Pintaras Jaya’s strategy of being selective in projects aims to optimize resources and maintain decent profit margins.
Strategic Outlook
The Group’s outstanding construction order book of approximately RM380 million as of end March is a positive indicator, expected to support financial performance for the remainder of FY2025. Furthermore, a “resilient and robust” tender book in Singapore suggests continued opportunities for the construction division. The Board of Directors remains optimistic, expressing the opinion that the Group’s financial results will remain profitable for the remaining period of the financial year ending 30 June 2025.
Summary and Outlook
Pintaras Jaya Berhad’s latest quarterly report showcases a company achieving significant profit growth, primarily powered by its strong performance in Singapore’s construction sector and a steady contribution from manufacturing. The substantial increase in Profit Before Tax for the nine-month period is a testament to its strategic focus and operational efficiency in key growth areas.
However, the report also provides a candid view of the challenges ahead. The Malaysian construction market remains tough, characterized by intense competition and low tender rates, leading to losses in the local segment. The manufacturing division, while stable, faces potential margin pressures from rising raw material costs. The volatility of fair value changes in quoted investments also adds a layer of unpredictability to quarterly results.
Key points to consider moving forward:
- The sustained strength of the Singapore construction market and Pintaras Jaya’s ability to secure profitable projects there.
- Management’s strategies to mitigate the impact of high fixed costs and lack of new projects in the Malaysian construction division.
- The effectiveness of managing raw material costs and maintaining margins in the manufacturing segment amidst anti-dumping duties.
- The overall impact of global macroeconomic factors and investment market volatility on the Group’s financial performance.
Despite these challenges, the substantial order book and a positive outlook from the Board suggest a continued profitable trajectory for the current financial year. Pintaras Jaya appears to be strategically positioning itself to leverage opportunities while prudently managing risks.
What are your thoughts on Pintaras Jaya’s latest performance? Do you believe their focus on the Singapore market will continue to be the primary driver of growth, or do you see potential for a turnaround in their Malaysian operations? Share your insights in the comments below!
