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During the year under review, the Company achieved a notable financial turnaround, transitioning from three consecutive years of losses to profitability. The company has declared a 0.5 sen final single-tier dividend in April 2024.
Based on the latest quarter result of Pesona, it seems applied reflected the industry is poised for margin recovery as newly-secured contracts have reflected cost inflation. In addition, post the pandemic, it has become increasingly common for contracts to carry price escalation clauses to safeguard the margins of contactors. As such, expect industry margins to improve in CY24 as older contracts with low margins tail off and new contracts with more normalised margins start to contribute. (Research by Kenaga construction sector update dated 05/01/2024).
As at 31/03/24, the Company has an outstanding order book is RM 1.8bil, after added recently secured letter of award RM 410mil (27/05/24), total order book on hand approximately RM 2.2bil.
The overall prospects in 2024 are expected to be brighter.
As of June 30, 2024, the company's outstanding order book stands at RM 2.1 billion (as reported on page 9 of the 24Q2 report). Following the addition of the latest LA of RM 0.32 billion on September 24, 2024, the total order book increases to RM 2.42 billion. Assuming that the construction segment generates revenue of RM 170 million in the upcoming 24Q3 quarter, the order book would still reflect RM 2.25 billion after accounting for this recognized revenue. If we apply a projected profit before tax (PBT) margin of 3.7% (based on the PBT from 24Q2) to the RM 170 million revenue, this would yield a PBT of approximately RM 6.29 million. Additionally, the company also has involved a 70% stake in concessionaire assets and maintenance, which consistently generates a stable profit before tax (PBT) of approximately RM 3.5 million per quarter
Disclaimer: The above content is not financial advice. Investing carries risks, and investors assume those risks on their own. The value of shares and investments can fluctuate, and past performance is not indicative of future results.
Letter of award from Sime Darby Property (Golfhome) Sdn Bhd for the superstructure works of a condominium consisting of 3 blocks and 150 units, with a total value of RM 321,088,683.20, averaging RM 2.14 million per unit !!!
