PJI expects to maintain profit


  • Business
  • Tuesday, 13 May 2003

BY IZWAN IDRIS

PJI Holdings Bhd expects its performance in the current financial year ending June 30 to match last year's results, chief executive officer and managing director Lee Peng Joo said. 

The group reported a pre-tax profit of RM20.7mil in 2002. 

PJI is also aiming for double-digit growth in profitability in 2004, backed by contributions from its business ventures in China and the Middle East. 

PJI Holdings Bhd Group CEO and Managing director Lee Peng Joo hitting the gong to mark the company's transfer to the KLSE's main board from the second board. He was accompanied by PJI's board of directors.

“We expect overseas businesses to contribute 30% to group profit by 2005,'' Lee told reporters in Kuala Lumpur yesterday after a ceremony to mark PJI's transfer of listing to the KLSE main board. 

Currently, the group has a 30% stake in a treatment plant that has been awarded a 50-year concession to supply water to the southern province of Xiamen in China. 

PJI has also been in talks on two other water-related projects in southern China but the outbreak of Severe Acute Respiratory Syndrome (SARS) forced the talks to be put off. 

“We hope to revive talks on the two projects in the coming months,'' Lee said, adding that the group was optimistic of securing the projects. 

Likewise, war in Iraq has also resulted in slow progress for bids in the Middle East. The company has tendered for infrastructure-related jobs in Qatar, Bahrain and the United Arab Emirates. 

“Decisions have been slow coming due to the war in Iraq. However we believe the results (of the tenders) will be out in a few months,'' Lee said. 

He added that PJI was currently tendering for about RM800mil worth of jobs in the local and overseas markets. “We hope to secure between 30% and 35% of the contracts tendered.'' 

As of March, PJI's order book stood at RM510mil, with a significant portion generated from the local market.  

Lee said PJI's transfer to the KLSE main board reflected the group's scale of operations and enhanced its reputation among clients and the investment community. 

The company, which is primarily involve in mechanical and electrical engineering, had earlier made a two-for-five bonus issue, increasing its capital base to 63.3 million shares. 

The stock ended at RM1.73 yesterday, unchanged from Friday's close, with 201,400 shares traded. 

In a separate statement, PJI told the KLSE that Kejuruteraan Putrajaya Sdn Bhd, a 61% owned subsidiary of P.J. Indah Sdn Bhd, which in turn is a wholly-owned subsidiary of PJI, was awarded a RM29.2mil contract by UE Construction Sdn Bhd. 

The contract is for the design, construction, completion, testing, commissioning and maintenance of electrical, fire fighting and lift installation services of office buildings and interior design works of the government buildings on Lot 2M10 and 2M11, Precinct 2, at Putrajaya. 

The project will not have any financial effect on the profitability of PJI Group for the year ending June 30. 

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
   

Did you find this article insightful?

Yes
No

Across The Star Online