Perak Transit Berhad is a Malaysia-based company, which operates as the investment holding company of Perak Transit Group. The Group is principally engaged in the operations of Terminal AmanJaya, an integrated public transportation terminal located in Ipoh, Perak, Malaysia. Perak Transit Group's major business activities are classified into three segments: Its terminal operation segment, including the leasing of advertising and promotions (A&P) and retail spaces at the terminal and the renting of the terminal's equipment, utilities and facilities; its public bus services segment, pertaining to the operation of express and stage buses and the provision of bus chartering services, and its petrol station operations segment, referring to the management of petrol stations. Besides, the Group provides human resource management services and manages a basement car park.

BRIEF: For the six months ended 30 June 2018, Perak Transit Bhd revenues increased 4% to RM57.4M. Net income increased 35% to RM18.6M. Revenues reflect an increase in demand for the Company's products and services due to favorable market conditions. Net income benefited from Other Operating Income increase of 60% to RM1.6M (income). Dividend per share totaled to RM0.01.

Based on the recent Q2 2018 result, Ptrans is recorded the highest quarter for revenue and profit. This profit generated is only based on current terminal Amanjaya. Results high possibility can double digit up after Kampar terminal is done in Q4 2018. You can see the profit trend is keep increasing. Ptrans can consider as one of growth company in ACE market.

Based on the chart, bottom “W” is form up, and support is around 0.285. Next resistance is at 0.32. Cut loss if fall below 0.26. Based on current investment bank analysis, TP is 0.41, but believed the TP is much higher due to monopoly business in Perak state, PER around 16X for small cap company plus FY2019 profit estimated around RM50m (RM12.5m per quarter). Therefore, TP FY2019 is set at 0.59. 100% increase based on current price.

Advantages of Ptrans:

1.       Monopoly business in Perak state.

2.       Going to transfer from ACE to main board listing in Q3 2018, this is the main cartelistic to move the share price.

3.       Terminal Kampar will be completed in Q4 2018.

4.       Stable share price plus good dividend pay-out.

5.       Consistent fuel price is benefit to transportation and petrol station business.