Hot Stock Pintaras rises 6% on TP upgrade

by **Cals** Fri 18 Apr 2014, 12:28

Hot Stock Pintaras rises 6% on TP upgrade

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Friday, 18 April 2014 10:47

KUALA LUMPUR (Apr 18): Pintaras Jaya Bhd rose as much 5.5% after RHB Research Institute Sdn Bhd upgraded its its target price (TP) for shares of the construction firm by 32%.

RHB which maintained its “buy” call on Pintaras, has raised its TP to RM4.61 from RM3.50, RHB said in a note today.

At 10.14am, Pintaras was traded at RM3.97, up 18 sen or 4.7% with some 340,200 shares done. The stock which traded among top gainers, rose as much as 21 sen to RM4.

For comparison Kenanga Investment Bank Bhd wrote in a note today that Pintaras' share price's immediate technical support and resistance were seen at RM3.67 and RM3.82 respectively.

Pintaras' order book is closely watched. RHB said Pintaras had recently secured two contracts valued at RM145 million. The contracts almost doubled Pintaras' orderbook to RM295 million from RM150 million.

“These new jobs have also, for the first time, effectively filled up Pintaras’ expanded capacity of about MYR300m from MYR150m, backed by about MYR100m capex
(capital expenditure) in recent years,” RHB said.

RHB said the new contracts had enhanced the earnings visibility of Pintaras up to FY15.

RHB also maintained its positive outlook on the piling segment which is backed by the RM73 billion Klang Valley MRT project, abundance of high-rise development, and shortage in piling capacity in the market.

"Typically, piling and related works make up 5% to 10% of total project value," RHB said.

RHB said Pintaras was among the top five piling companies in Malaysia, controlling about 5% to 10% of market share here.