Puncak Niaga optimistic of its prospects


PETALING JAYA: Puncak Niaga Holdings Bhd remains cautiously optimistic about its business prospects.

In a filing with Bursa Malaysia, the group said it shall continue to seek opportunities to increase revenue in its core businesses, ensure timely completion of all projects, exercise prudence in business dealings and achieve operational efficiency for long-term sustainable growth.

For its fourth quarter ended Dec 31, 2023, Puncak Niaga reported a net profit of RM53.07mil, compared with a net loss of RM7.07mil in the previous corresponding period, mainly due to higher other income attributable from fair value gain on investment properties and discontinuing of legal suits.

Revenue in the fourth quarter slipped to RM57.92mil from RM58.47mil in the previous corresponding period, mainly due to lower revenue contribution from its construction and plantation segments.

It reported a basic earnings per share of 11.87 sen versus a loss per share of 1.58 sen previously.

For the financial year ended Dec 31, 2023, Puncak Niaga reported a net profit of RM8.85mil compared with a net loss of RM15.90mil in the previous corresponding period, while revenue rose to RM241.78mil against RM220.93mil a year earlier.

Going forward, Punak Niaga said the key focus for its construction segment is to complete the existing projects within budget and within the approved extension of time granted by the clients.

“The construction segment anticipates intense competition for new tender projects due to the limited availability of projects, escalating costs of construction materials and labour shortages.

“Consequently, the group shall continue to be vigilant and prudent in selecting projects with sufficient margins when bidding for new opportunities in utilities and infrastructure projects domestically.”

The group said its expertise in providing integrated water, wastewater and environmental solutions will serve as a competitive edge when bidding for contracts.

In relation to the plantation segment, Puncak Niaga said the price volatility is expected to continue in the near term due to geopolitical crises and global macroeconomic conditions.

“Despite the challenging outlook for the plantation industry, the group remains committed to navigating through these circumstances and finding viable solutions.

“The group recognises the importance of implementing strategies to mitigate risks while maximising our operational efficiency to focus on productive areas and to ensure full harvesting of fresh fruit bunches on the field.”

For the concession segment, Puncak Niaga said it will continue to fulfil its obligations under the maintenance services of the Z1P2 Concession Agreement and the asset management services of the Z1P3 Concession Agreement to the best of its abilities.

“The income from the maintenance services and asset management services will enable the group to have stable income streams throughout the concession periods.”

Puncak Niaga said its foray into the healthcare and non healthcare services sector has proven to be successful and opened new and exciting opportunities of long term sustainable growth for the group.

“Leveraging on its proven track record in delivering Z1P3, the group will adopt a similar approach to build and manage other teaching hospitals under the Ministry of Higher Education, as well as participating in tenders for new hospitals called by the Ministry of Health.

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