Pintaras rises 6% to new all-time high on dividend

-A +A

KUALA LUMPUR (Oct 1): Construction firm Pintaras Jaya Bhd climbed as much as 28 sen or 6% to a new all-time high of RM4.88 today. Pintaras had risen as investors chased the shares to capitalise on its proposed dividend.

The stock became the third-biggest gainer across Bursa Malaysia, albeit on thin trade of 206,500 shares at 3.51pm. For comparison, the FBM KLCI fell 1.96 points or 0.1%.

Piling specialist Pintaras has proposed to pay a dividend of nine sen a share for the fourth quarter ended June 30, 2014, bringing the full-year figure to 15 sen. The stock will trade ex-dividend this Dec 29.

RHB Research Institute Sdn Bhd has a fair value of RM4.92 for Pintaras shares.

In RHB's latest note on the construction sector, RHB analyst Joshua Ng named Pintaras as the best proxy for piling jobs.

Ng, in a previous note on Pintaras, said the company had a few key advantages over its rivals. He said Pintaras had a full range of piling machines, tools and accessories; possesses in-depth knowledge of ground conditions; and has the ability to secure cash discounts for key inputs, as Pintaras has a strong balance sheet.