PINTARAS hopes to double order book in 2011

Construction outfit Pintaras Jaya Bhd targets to double its order book to RM120 million in the next 12 months in anticipation of more substructure works.

Its managing director Dr Chiu Hong Keong said the construction industry had been slow in the past two years, but was upbeat on future prospects with the upcoming 10th Malaysia Plan and various projects in the offing.

“This year has continued to be slow. However, upcoming projects like the LRT and MRT expansion line and Warisan Merdeka should generate a lot of work in the next two years. And Pintaras Jaya would be one of the first to benefit from it as we are involved in the piling and substructure works,” he said after the company’s AGM yesterday.

According to Chiu, Pintaras Jaya currently has about RM60 million of contracts in hand to be completed in the next twelve months and is in the midst of tendering for more projects.

“(The order book of) RM60 million is little compared to before the economic crisis. At that time, our order book could be RM120 million or more. Nonetheless, we should see the economy picking up in the next two years,” said Chiu.

For FY10 ended June 30, Pintaras Jaya’s net profit rose 80% to RM20.73 million or 25.9 sen per share, despite its revenue dropping 18% to RM105.73 million from a year earlier. The higher profit is attributed to equipment rentals, investments and dividend incomes in the midst of less construction activities.

Construction activities contributed about 62% to the company’s revenue at RM65.5 million, with the rest from its manufacturing of metal cans and plastic packaging.

On expansion plans, Chiu said the company would only acquire new equipment whenever required.

“We would only acquire new equipment based on the needs of our projects. In anticipation of more projects in the next two to three years, I foresee that we may spend up to RM50 million on new equipment if the jobs require it,” said Chiu.

“There are no active plans to sell the manufacturing business. However, I may change my mind if a really good offer comes along. Likewise, we are also always looking at opportunities for acquisition (in the construction business) but only when we find a really good deal,” said Chiu.

The manufacturing plant currently runs on one shift, with a capacity of nine million metal cans and 600 tonnes of plastic a year.

Pintaras Jaya inched up two sen to close at RM2 yesterday, with 45,500 shares done.- by Max Koh