► TA SECURITIES
A MEMBER OF THE TA GROUP
RESULTS UPDATE
Thursday, August 21, 2025
FBMKLCI: 1,588.21
Sector: Transportation
THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY*
Perak Transit Consistent Rental Income
Perak Transit Berhad
Consistent Rental Income in 2Q25
TP: RM1.08 (+56.8%)
Last Traded: RM0.69
BUY (ESG: ★★★)
Tel: +603-2167 9605
kmtan@ta.com.my
www.taonline.com.my
Review
- Perak Transit (Ptrans) reported a core profit of RM39.6mn for IH25, which was in line with expectations. The company declared a third interim dividend of 0.5sen/share for FY25, payable on 19 November 2025.
- IH25 core profit rose 12.1% YoY to RM39.6mn on the back of revenue growth and margin expansion. IH25 revenue grew 6.1% YoY due to a new rental income stream from Terminal Bidor Sentral (TBS), which commenced operations in 3Q24. Moreover, rental income from Terminal Kampar Putra Sentral (KPS) also grew due to an increase in occupancy rate. Meanwhile, IH25 PBT margin expanded by 4.8% YoY due to increased operational efficiency.
- QoQ, 2Q25 core profit was little change at RM20mn while the revenue grew marginal by 1.6% to RM49.1mn. The stable earnings can be attributed to sustained earnings contribution from KPS and TBS.
Impact
- No change to our FY25-27 earnings projections.
Outlook
- Looking forward, KPS and TBS are expected to be engines of growth with increasing occupancy and rental rates to fuel FY25-27 earnings. As of Mar-25, the occupancy rates of KPS and TBS stood at 77% and 67% respectively and we believe it will rise further due to higher demand for retail space.
- For new terminal projects, i.e., Terminal Tronoh Sentral and Terminal Sri Iskandar Sentral, the construction progress reached 34% and 19% completion, respectively in Mar-25. We do not expect the construction progress would be derailed by the SST announced recently.
Valuation
- We maintain Ptrans’ SOP valuation at RM1.08/share (see Figure 1). Maintain Buy
Figure 1: SOP valuation
| WACC | T. Growth | Debt balance | RNAV (RM’mn) | |
|---|---|---|---|---|
| Meru Raya | 7.5% | 2.0% | 17.7 | 389.3 |
| Kampar Putra Sentral | 7.5% | 2.0% | 34.4 | 800.7 |
| Bidor Sentral | 7.5% | 2.0% | 76.9 | 43.3 |
| Bus operation | 10x CY26EPS | 29.9 | ||
| Petrol station & others | 10x CY26EPS | 25.0 | ||
| Sub-total | 1288.2 | |||
| Proceeds from warrant conversions | 83.6 | |||
| Outstanding shares + warrant conversion (mn shares) | 1267.9 | |||
| Fair value (RM/share) | 1.08 | |||
| ESG (+premium/-discount) | 0% | |||
| Fair value (RM/share) | 1.08 | |||
Source: Perak Transit & TA Securities
Share Information
| Bloomberg Code | PERAK MK |
| Stock Code | 0186 |
| Listing | Main Market |
| Share Cap (mn) | 1152.0 |
| Market Cap (RMmn) | 806.4 |
| 52-wk Hi/Lo (RM) | 0.805/0.66 |
| 12-mth Avg Daily Vol (‘000 shrs) | 808.2 |
| Estimated Free Float (%) | 60.8 |
| Beta | 0.4 |
Major Shareholders (%)
Dato’ Sri Cheong & family – 15.7%
Tan Chee Sing – 6.4%
Forecast Revision
| FY25 | FY26 | |
|---|---|---|
| Forecast Revision (%) | 0.0 | 0.0 |
| Net profit (RMmn) | 77.9 | 80.1 |
| Consensus | 77.9 | 80.1 |
| TA’s / Consensus (%) | 100.0 | 100.0 |
| Previous Rating | Buy (Maintained) | |
| Consensus Target Price (RM) | 1.04 | |
Financial Indicators
| FY25 | FY26 | |
|---|---|---|
| Net gearing (x) | 0.9 | 0.9 |
| CFPS (sen) | (12.3) | (2.4) |
| P/CFPS (x) | nm | nm |
| ROAA (%) | 4.5 | 4.4 |
| ROAE (%) | 10.0 | 9.7 |
| NTA/Share (RM) | 0.7 | 0.7 |
| Price/ NTA (x) | 1.0 | 0.9 |
Scorecard
| % of FY | ||
|---|---|---|
| 50.9 | Within | |
| vs. TA | 50.9 | Within |
| vs. Consensus | 50.9 | Within |
Share Performance (%)
| Price Change | PTRANS | FBM KLCI |
|---|---|---|
| 1 mth | (0.7) | 4.1 |
| 3 mth | (0.7) | 2.5 |
| 6 mth | (9.1) | 0.7 |
| 12 mth | 3.6 | (3.3) |
(12-Mth) Share Price relative to the FBMKLCI
[Chart: A line chart showing a relative performance of Perak Transit against FBMKLCI over 12 months.
Perak Transit shows initial stability, a dip around 6 months ago, and then a slight recovery.
FBMKLCI shows a general upward trend.]
Source: Bloomberg
TA SECURITIES
A MEMBER OF THE TA GROUP
21-Aug-25
Figure 2: Earnings Summary (RMmn)
| FYE Dec | FY23 | FY24 | FY25F | FY26F | FY27F |
|---|---|---|---|---|---|
| Revenue | 173.2 | 186.7 | 258.8 | 265.1 | 283.4 |
| EBITDA | 116.1 | 126.0 | 138.9 | 144.1 | 155.1 |
| EBITDA margin (%) | 67.0 | 67.5 | 53.7 | 54.3 | 54.7 |
| Dep. & amor. | (21.8) | (23.4) | (23.8) | (23.8) | (23.8) |
| Net finance costs | (13.4) | (13.6) | (18.1) | (20.5) | (20.0) |
| EI | (0.0) | 0.0 | 0.0 | 0.0 | 0.0 |
| Adj. PBT | 81.2 | 89.3 | 97.4 | 100.2 | 111.7 |
| Tax | (16.1) | (18.3) | (19.5) | (20.0) | (22.3) |
| Net profit | 65.1 | 71.0 | 77.9 | 80.1 | 89.3 |
| Core net profit | 65.1 | 71.0 | 77.9 | 80.1 | 89.3 |
| Core EPS (sen) * | 6.0 | 6.5 | 6.9 | 7.1 | 7.9 |
| EPS Growth (%) | 0.0 | 8.0 | 6.4 | 2.9 | 11.5 |
| PER (x) | 11.6 | 10.7 | 10.1 | 9.8 | 8.8 |
| DPS (sen) * | 2.0 | 2.3 | 2.7 | 2.8 | 3.1 |
| Div Yield (sen) | 2.9 | 3.3 | 4.0 | 4.1 | 4.6 |
* Adj for bonus issue
Figure 3: 2Q25 Results Analysis (RMmn)
| FYE Dec | 2Q24 | 1Q25 | 2Q25 | QoQ (%) | YoY (%) | 6M24 | 6M25 | YoY (%) |
|---|---|---|---|---|---|---|---|---|
| Revenue | 47.3 | 48.3 | 49.1 | 1.6 | 4.0 | 91.9 | 97.5 | 6.1 |
| Terminal operations | 31.7 | 33.5 | 34.9 | 4.0 | 10.0 | 60.7 | 68.4 | 12.7 |
| Petrol station and ADO | 8.9 | 8.4 | 5.8 | (31.1) | (35.4) | 17.1 | 14.1 | (17.6) |
| Bus operations | 6.5 | 6.5 | 8.5 | 32.3 | 32.2 | 14.1 | 15.0 | 14.5 |
| EBITDA | 27.2 | 31.8 | 32.8 | 3.2 | 20.5 | 54.1 | 64.6 | 19.3 |
| Depreciation & Amortisation | (5.4) | (6.7) | (7.2) | 7.9 | 34.1 | (10.8) | (13.9) | 29.0 |
| EBIT | 24.9 | 29.0 | 29.2 | 0.7 | 17.5 | 49.5 | 58.2 | 17.5 |
| Interest costs | (3.0) | (3.9) | (3.6) | (6.8) | 20.3 | (6.1) | (7.5) | 21.9 |
| EI | 0.0 | 0.0 | 0.0 | nm | nm | 0.0 | 0.0 | nm |
| PBT | 21.9 | 25.1 | 25.6 | 1.9 | 17.1 | 43.4 | 50.7 | 16.9 |
| Adj. PBT | 21.9 | 25.1 | 25.6 | 1.9 | 17.1 | 43.4 | 50.7 | 16.9 |
| Tax | (4.2) | (5.4) | (5.7) | 6.6 | 37.2 | (8.0) | (11.1) | 38.4 |
| MI | (0.0) | (0.0) | (0.0) | 75.0 | 0.0 | (0.0) | (0.0) | (8.3) |
| Net profit | 17.7 | 19.8 | 19.9 | 0.6 | 12.4 | 35.4 | 39.6 | 12.1 |
| Core net profit | 17.7 | 19.8 | 19.9 | 0.6 | 12.4 | 35.4 | 39.6 | 12.1 |
| Core EPS * (sen) | 1.6 | 1.8 | 1.8 | (1.1) | 9.3 | 3.2 | 3.5 | 9.9 |
| DPS * (sen) | 0.5 | 0.5 | 0.5 | 0.0 | 0.0 | 1.3 | 1.0 | (20.0) |
Profitability ratio
| p.p. | p.p. | p.p. | ||||||
|---|---|---|---|---|---|---|---|---|
| EBITDA margin (%) | 57.6 | 65.8 | 66.7 | 1.0 | 9.1 | 58.9 | 66.3 | 7.3 |
| PBT margin (%) | 46.2 | 51.9 | 52.1 | 0.1 | 5.8 | 47.2 | 52.0 | 4.8 |
| Net profit margin (%) | 37.4 | 40.9 | 40.5 | (0.4) | 3.0 | 38.5 | 40.7 | 2.2 |
| Tax rate (%) | 19.0 | 21.3 | 22.3 | 1.0 | 3.3 | 18.4 | 21.8 | 3.4 |
* ex-bonus
TA SECURITIES
A MEMBER OF THE TA GROUP
21-Aug-25
Sector Recommendation Guideline
OVERWEIGHT: The total return of the sector, as per our coverage universe, exceeds 12%.
NEUTRAL: The total return of the sector, as per our coverage universe, is within the range of 7% to 12%.
UNDERWEIGHT: The total return of the sector, as per our coverage universe, is lower than 7%.
Stock Recommendation Guideline
BUY : Total return of the stock exceeds 12%.
HOLD : Total return of the stock is within the range of 7% to 12%.
SELL : Total return of the stock is lower than 7%.
Not Rated: The company is not under coverage. The report is for information only.
Total Return of the stock includes expected share price appreciation, adjustment for ESG rating and gross dividend. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting.
Total Return of the sector is market capitalisation weighted average of total return of the stocks in the sector.
ESG Scoring & Guideline
| Scoring | Environmental | Social | Governance | Average |
|---|---|---|---|---|
| ★★★ | ★★★★ | ★★★ | ★★★ | |
| Remark | The construction and operation of bus terminals and stage bus operator have negative impact on the environment. | The group plays a major role in fostering local communities in which it operates. | As a service provider to local communities, it has clear policies on anti-bribery and corruption, gift and entertainment to eradicate unfair practices. | |
| ★★★★★ (≥80%) | Displayed market leading capabilities in integrating ESG factors in all aspects of operations, management and future directions. | +5% premium to target price | ||
| ★★★★ (60-79%) | Above adequate integration of ESG factors into most aspects of operations, management and future directions. | +3% premium to target price | ||
| ★★★ (40-59%) | Adequate integration of ESG factors into operations, management and future directions. | No changes to target price | ||
| ★★ (20-39%) | Have some integration of ESG factors in operations and management but are insufficient. | -3% discount to target price | ||
| ★ (<20%) | Minimal or no integration of ESG factors in operations and management. | -5% discount to target price | ||
Disclaimer
The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein.
As of Thursday, August 21, 2025, the analyst, Tan Kam Meng, who prepared this report, has interest in the following securities covered in this report:
(a) nil
