PLB Engineering Bhd
PLB (Fundamental: 0.8/3, Valuation: 1.2/3) saw a 3.4% fall in its share price to close at RM1.73 yesterday. 

The company is involved, principally, in property development, which now contributes a significant 54.7% of revenue. This is followed by the construction arm, which accounts for another 34.4% of revenue. PLB also holds a 20-year concession to manage the Pulau Burung sanitary landfill site.

Just two weeks ago, PLB proposed to purchase 42,668.4 square metres of land in Seberang Perai Utara to increase its land bank. The purchase consideration of RM7.5 million is to be satisfied via a mix of internally generated funds and borrowings. Gearing for the company was 56.1% as at 31 August 2014. 

PLB’s revenue between FYAug2012 to FY2014 was boosted by increased property sales. Accordingly, net profit also increased, ranging between RM10.9 — RM12.8 million over the same period. 

The stock is trading at 1.06 times book and a trailing 12-month P/E of 11.48 times. 

This article first appeared in The Edge Financial Daily, on January 29, 2015.