Singapore operations to drive Pintaras Jaya’s growth

Pintaras Jaya noted the construction sector in Malaysia as a whole remained subdued, while the property sector was sluggish.

PETALING JAYA: Expecting the operating environment in Malaysia to be challenging, Pintaras Jaya Bhd says its Singapore business will likely pick up the slack and drive growth for the financial year ending June 30,2021 (FY21).

Citing its Singapore operations’ strong tender book, the construction group’s chairman/managing director Dr Chiu Hong Keong said the company had sufficient projects to tide it through the new financial year.

“We believe the operating environment for Malaysia will remain extremely tough for the group. Growth will likely come from our Singapore operations where we continue to have a strong tender book. We also have enough projects in hand to see us through FY21, ” Chiu said in the group’s annual report.

Despite the prevailing uncertainties, Chiu noted that the group should remain profitable for FY21, underpinned by its RM400mil order book.

Pintaras Jaya said uncertainties were becoming a persistent feature due to the Covid-19 pandemic.

It noted the construction sector in Malaysia as a whole remained subdued, while the property sector was sluggish.

While the East Coast Rail Link groundworks had picked up some pace, others such as the high-speed rail, rapid transit system (Johor Baru), Penang Transport Master Plan (Penang) and many previously announced mega-projects had yet to be implemented.

“We can only hope for a well-thought-out budget for 2021 and an ambitious 12th Malaysia Plan. We should expect a very competitive landscape with many contractors having excess capacities and very hungry for projects, ” the group said.

Conversely, Pintaras Jaya noted that its foray into Singapore had been fruitful and developed into a pillar of top and bottom line growth for the group.

“We continue to see opportunities in Singapore and will expand our business further. Work has now resumed significantly and we should reach full equipment utilisation by October 2020, ” it said.

“Tendering activities are picking up quickly as well and we should start securing new jobs in October 2020, ” it added.

Pintaras Jaya’s net profit grew 21.4% to RM31.7mil in FY20 from RM26.1mil in the preceding year. Its revenue grew 18.4% to RM373.9mil in FY20 from RM315.9mil previously.

Pintaras Jaya’s shares closed unchanged last Friday at RM2.38.