KUALA LUMPUR (March 2): PUNCAK NIAGA HOLDINGS BHD []’s share price rose to a high of RM1.55 on Friday following a better than expected financial performance and hopes for a tariff hike.
At 4.09pm, Puncak was up 15 sen to RM1.50 on rising volume. There were 20.38 million shares transacted at prices ranging from RM1.36 to RM1.55.
OSK Research said that due to timely profit recognition at its CONSTRUCTION [] division, Puncak’s core net profit of RM3.7 million for FY11 beat its and street projections for a loss.
The research house said the scheduled 25% water tariff hike from 2012 may somewhat help improve earnings, regardless of whether official approval was granted.
“We are also upbeat on higher revenue from its newly acquired oil and gas (O&G) unit and earnings from outstanding pipe laying projects. As the share price offers a decent upside to our FV of RM1.82, we are prompted to upgrade Puncak back to a Trading BUY,” said OSK Research.
At 4.09pm, Puncak was up 15 sen to RM1.50 on rising volume. There were 20.38 million shares transacted at prices ranging from RM1.36 to RM1.55.
OSK Research said that due to timely profit recognition at its CONSTRUCTION [] division, Puncak’s core net profit of RM3.7 million for FY11 beat its and street projections for a loss.
The research house said the scheduled 25% water tariff hike from 2012 may somewhat help improve earnings, regardless of whether official approval was granted.
“We are also upbeat on higher revenue from its newly acquired oil and gas (O&G) unit and earnings from outstanding pipe laying projects. As the share price offers a decent upside to our FV of RM1.82, we are prompted to upgrade Puncak back to a Trading BUY,” said OSK Research.
