kcchongnz

Pintaras returned another fantastic performance for year ending 30/6/2012 with top-line and bottom-line improved by 47% and 64% to 185m and 36 m respectively. Cash flows from operations is abundant at 52 m. Earnings per share, after adjusting for non-operating items is 52 sen per share. At the closing price of 2.81 yesterday, the PE is only about 5. Moreover, it has an excess cash per share of 1.53. It has no debt at all. ROE at 18% and ROIC 32%! Don't you think Pintaras is a good investment at this price? Price target of 3.50 by OSK? In my opinion, Pintaras is worth much much more than this price target. Try do a discount cash flow analysis, even with minimal growth assumption, or using other more appropriate valuation methods such as basing on ROE rather than the not-so appropriate PE ratio.

2012-08-29 05:40

passerby

People start to realize this counter also.

I got to know them because they are the pilling contractor - capable of doing bore pile ( cast in situ ) - one of the big name competing with Borneo Geotechnics, Bauer, Geo Pancar, SunGeo, etc

Paying good dividend & is getting better as the time past. No borrowing & sitting on pile of cash.

The only thing I dislike about this counter - the management is using the retained cash for investment purpose ( by appointing some fund managers to handle the cash - donno how good are those fund managers? )

2012-08-29 19:05

kcchongnz

passerby, very good points from you. I was in fact working for a bored piling and foundation contractor 10 years ago. Pintaras was one of our competitors. Pintaras's niche is the boss Dr Chiu is a geo-technical engineer and they are able to offer design and build for piling and basement works. Besides Dr Chiu seems to be a good PR man. Pintaras has good contacts with developers and Dr Chiu is able to choose and pick good jobs with good margin. Hence I know this company and the industry well. Pintaras's good performance is all shown up in its financial statements, year after year.

2012-08-29 19:37

passerby

kcchongnz ,so you was a contractor & in the industry loop before, good to hear that you .

I have been wondering & guessing in the past their competitive advantages that enable them to maintain such high net profit margin ( approx 30% ), after hearing from you explanation, it starts to make sense.

1) A strong "cable" Dr.Chiu to pick high profit margin jobs.
2) Offering design & build - ability to offer value engineering to ensure cost & time effectiveness for the construction work.

Most investors put more attentions to mid & big cap construction counters that are covered by news. Not many know the importance of the foundation & piling works for construction industry I'll say especially if there are not from this industry.

Unloved counter & low coverage from analysts. 2 thumbs up for your pick :)

2012-08-29 23:43

cwchong

hi all, is still a good buy for this counter at this level since it is at the current high price level?

2012-09-06 10:29

kcchongnz

Pintaras 1st quarter 2013 results shows another improvement of net profit of 18% to 14.3 m, or 18 sen per share. Its net cash from operations also increased by 19% to 20.6 m. As a result net cash holding also improved by 10% to 134.6 m, or 1.68 per share. A discount cash flows analysis with conservative assumptions using the twelve month trailing Ebit, 3% growth for the future and 10% discount rate will yield an intrinsic value of Pintaras of RM7.72 per share. Is there a frog jumping around?

2012-11-09 10:27

kcchongnz

Is there a big frog jumping all around?
file:///C:/Users/Su%20Lyn/Google%20Drive/Pintaras%2013112012.pdf

2012-11-15 11:05

kcchongnz

In this runup, every stock takes a breather the last couple of days, except for this highly illiquid stock. The momentum has in fact increases. Is there some good announcement on the way?

2013-05-17 16:34

passerby

interim dividend 10%...not final dividend, it is interim 10% !

2013-05-17 17:51

kcchongnz

Yeah interim dividend increased from 7.5 sen to 10 sen. Turnover decreases slightly from 45.1m to 42.4m for the quarter but net profit increases from 9m to 13.8m. Net profit margin exploded from 20% to 33%. Trailing twelve month earnings is 62.3 sen per share. At closing price of 3.76 today, PE is only 6, not forgetting that it has 1.91 cash at hand. 9 months already produced 46.2m cash.

The thing is that it has secured a couple of jobs of good value recently. think its earnings in the next few quarters will be very good. No wonder its price has been going up.

2013-05-17 19:31