Hot Stock Pintaras Jaya falls 2.4% after weaker 3Q results

by **Cals** Fri 23 May 2014, 00:17

Hot Stock Pintaras Jaya falls 2.4% after weaker 3Q results

Business & Markets 2014

Written by Jonathan Gan of theedgemalaysia.com

Thursday, 22 May 2014 15:37

KUALA LUMPUR (May 22): Pintaras Jaya Bhd’s share fell 2.4% today after it released its weaker third quarter results.

Even the painting of a positive outlook on the company by analysts could not save the day.

At mid-day market break, Pintaras Jaya’s share fell 10 sen or 2.4% to RM3.97 with 299,800 shares done.

Yesterday, the company reported lower net profit of RM9.26 million for its third financial quarter ended March 31, 2014, down from RM13.81 million a year ago. Cumulative net profits for the nine months to March were also lower at RM33.53 million, compared to RM36.16 million a year ago.

The company had declared an interim single tier dividend of 6 sen per share in respect of the financial year June 30, 2014, but investors were oblivious to this.

RHB Research said today it has maintained its “buy” call on the stock with a target price of RM4.61 despite the company’s lower net profits.

Analyst Joshua Ng of RHB Research said the outlook for the company remains positive as it is a good proxy to the buoyant piling segment.

“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,” said Ng

Ng added that the company’s key strengths included its full range of piling machines and in-depth knowledge of ground conditions.

Khoh Wei Keen, technical analyst with Kenanga Investment Bank, told theedgemalaysia.com that the stock remains well supported at RM3.90.

“The stock won’t drop below RM3.80 but we see strong resistance at RM4.13. There would be more upward movement if that resistance level is broken,” he commented.