PETALING JAYA: Piling and basis primarily based Pintaras Jaya Bhd is effectively positioned to learn from the decide up in Singapore’s building sector, in response to RHB Analysis.
The Singapore Constructing and Development Authority has projected building demand to vary between S$25bil and $32bil (RM78.1bil and RM99.97bil) from 2023-2026 again to the pre-pandemic ranges.
RHB Analysis mentioned Pintaras can be supported by the robust pipeline of public housing initiatives, in addition to healthcare growth and infrastructure work, together with the Cross Island mass speedy transit line, for which Pintaras has had earlier expertise.
“Pintaras has a large footprint in Singapore as about 80% of income is derived from its initiatives there,” the analysis home mentioned in its newest report.
RHB Analysis identified that the group is just not extremely uncovered to the outlook of mega initiatives in Malaysia.
Pintaras is in a internet money place as of Dec 31, 2021, which allows the group to tackle bigger jobs going ahead.
Its building order ebook stands at about RM320mil, of which Singapore accounted for 80% and Malaysia 20%.
The analysis home mentioned the group has a mean replenishment fee of about RM400mil up to now three monetary years.
The working revenue of its manufacturing division is estimated to develop steadily to about 4% within the subsequent two monetary years.
That is backed by the strong demand from main prospects comparable to Japanese paint product producer, Nippon Paint, which forecasts a 5% to 10% income development in 2022 in Asia, excluding China and Japan, in response to the analysis home.
When it comes to value administration, the group is in a position to deal with the rising uncooked materials costs in contrast with its building division as “it is ready to periodically revise the pricing of its merchandise primarily based on the prevailing developments,” it added.
The analysis home didn’t make any modifications to Pintaras’ monetary years 2022 to 2024 earnings.
It additionally saved its goal value of RM3.24 a share unchanged.