KUALA LUMPUR (May 27): Protasco Bhd saw its net profit rise 23.6% to RM13.12 million or 3.91 sen a share for the first quarter ended March 31, 2015 (1QFY15) from RM10.6 million or 3.23 sen a share a year earlier, due to contribution from the Perumahan Penjawat Awam 1Malaysia (PPA1M) project which had commenced in 3QFY14.

Revenue for 1QFY15 was 48.3% higher at RM219.06 million from RM147.75 million previously.

Protasco also declared an interim dividend of 4 sen per share for the financial year ending Dec 31, 2015 (FY15), payable on July 1, 2015.

In a filing with Bursa Malaysia today, Protasco said the construction division's pre-tax profit (PBT) for 1QFY15 was RM5.6 million, more than doubled the RM2.4 million PBT posted in 1QFY14. Revenue jumped over four times to RM132.9 million from RM28.6 million before.

"This improved performance in the construction segment came from PPA1M project, which is 26% completed as of end of the first quarter," it added.

The group’s maintenance division on the other hand recorded an 87% increase in revenue to RM94.78 million from an increase in periodic maintenance works awarded from the result of the natural disasters in the east coast of Malaysia.

However, the division only say a 2% increase in PBT to RM17.11 million as periodic works with emergency in nature yield a lower profit margin compared to regular routine works.

Protasco’s property development division saw a revenue increase of 18% to RM25.01 million from the group’s mixed development projects, De Centrum Phase 1 and Phase 2A. However, the PBT decrease by 39% to RM2.58 million due to additional construction cost incurred for Phase 1.

“As at March 31, 2015, Phase 1 was 62% completed and Phase 2A was 14% completed,” said the group.

Protasco said it anticipates that its three main segments – maintenance, construction and property development – to continue to be the main contributor to its revenue and profits for full FY15.

“The group will also continue to explore other business opportunities, both locally and internationally, to further enhance the shareholders’ value. Barring unforeseen circumstances, the board of directors is cautiously optimistic that the group will continue to improve its overall performance in 2015,” said Protasco.

Protasco (fundamental: 1.15; valautaion: 1.2) shares closed down 1.09% at RM1.82 today, bringing a market capitalisation of RM605.15 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)