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Thursday, May 22, 2014

Pintaras shares down despite analysts Buy call


KUALA LUMPUR: Shares of Pintaras Jaya fell at mid-morning on Thursday after its third quarter net profit narrowed to RM9.2mil from RM13.8mil a year ago.
At 10.52am, its shares fell 10 sen to RM3.97 with 253,300 shares traded between RM3.90 and RM3.98.
The FBM KLCI was up 1.52 points to 1,878.55. Turnover was 502.19 million shares valued at RM349.87mil. There were 322 gainers, 220 decliners and 257 counters unchanged.
However, RHB Research has kept a Buy call on the group’s stock with a target price of RM4.61 as it believes the company is a good proxy to the buoyant piling segment, backed by the Klang Valley MRT project, a proliferation of high-rise developments, and capacity shortage, which will boost piling rates.
“Pintaras recently secured two sizeable contracts with a combined value of RM145mil.
“These two jobs have almost doubled its outstanding orderbook to RM295mil from RM150mil, and, for the first time, effectively filled up its expanded capacity of about RM300mil from RM150mil, backed by about RM100mil capex in recent years,” it said.

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