Decent profit for the quarter for Protasco

After stripping a oneoff impairment of RM84.6 million, Protasco Bhd’s (Protasco) nine months for 2014 (9M14) earnings came in line with analysts’ expectations at RM42.3 million.

This accounted for 71 per cent and 73 per cent of ours and consensus FY14 estimates respectively for Protasco Bhd ( Protasco).

MIDF Amanah Investment Bank Bhd’s research arm ( MIDF Research) noted that cumulative earnings margin has improved to 6.3 per cent from 5.6 per cent.

“We note that the stellar 9MFY14 earnings figure was mainly on account of the strong progress billings of Phase 1 of mixed property developments of De Centrum, which was 43 per cent completed.

“There is also the accelerated construction progress of projects secured last year and supported by improved pace of engineering and education segments,” said the research house.

“We are rather perturbed with the on- going tussle between Protasco’s directors. This has raised concern on its stability and future direction and thus led to depressed share price.”

On a positive note, the research house have little doubt that the group shall be triumphant in its legal action against the termination of RM84.6 million acquisition of PT ASI.

Furthermore, the research house are sanguine on its earnings potential supported by a healthy balance sheet to carry out its business. We believe the Group’s bottom line prospects will remain attractive.