Pintaras is a construction company and its stock price moved up yesterday due to good profit. Does this mean our property market is still hot and in good demand?

Pintaras jumps on strong profit

KUALA LUMPUR: Shares of Pintaras Jaya Bhd had their biggest one-day jump in almost five months yesterday after the piling specialist posted its best ever net profit.

Interest in the stock may have also been spurred by company insiders' persistent buying, namely its chairman and managing director Dr Chiu Hong Keong, its filings to Bursa Malaysia showed.

Pintaras shares jumped 5.5 per cent, or 12 sen, to RM2.32 yesterday. This is its biggest single day jump since April 6. The stock has gained 22 per cent so far this year, doing better than the broader market's 3.3 per cent fall over the same period.

The group made a net profit of RM32.46 million for the year to June 30 2011, a 57 per cent jump from the year before. Revenue was also 19 per cent higher to RM126 million. This is its best profit since the group was set up in 1989.

It decided to declare a full-year dividend of 19 sen a share, better than the 15 sen for 2010.

Pintaras' results were mainly driven by its construction and manufacturing divisions. The group thinks it can do better for 2012.

"This is in view of the existing strong order book, the numerous tenders submitted and the anticipated implementation of more construction projects under the Economic Transformation Programme," it said in its financial announcement.

Pintaras is well known for its solid balance sheet. It has no debt and cash and short-term investments of RM101.7 million as at June 30.

Bursa Malaysia filings also showed that Chiu has been buying Pintaras shares since the start of this month.

He has bought 209,000 shares over six days, raising his indirect stake, via Pintaras Bina Sdn Bhd, to 43.68 per cent from 43.5 per cent before.

Chiu also has a direct stake of 14.25 per cent. - from btimes.com.my