KTB 4847 pn17 KONSORTIUM TRANSNASIONAL BERHAD driving itself out of the rut?

  KTB 4847 pn17 KONSORTIUM TRANSNASIONAL BERHAD  driving itself out of the rut?


Konsortium Transnasional Bhd (KTB), one of the largest public bus operator in Malaysia, has been on an upward trend, igniting hopes that it will be out of PN17 soon.


Investors will be relief that after 3 years since it triggered the PN17 status, KTB will be able to move forward as a different company altogether.


Optimism on the counter is reflected in the share price of KTB, which gained 27.5% YTD to close at its 52-week high of 26 sen on April 28.


KTB triggered the PN17 criteria in April 2020, after its auditors highlighted a material uncertainty in the group’s ability to continue as a going concern in its audited financial statements for the financial year ended Dec 31, 2018 (FY18).


The group, which has been loss-making since FY18, reported a net loss of RM11.81 million for the first half of FY22, on revenue of RM36.77 million.


In FY22, its net loss widened to RM11.3 million from RM5.4 million in the previous year despite posting higher revenue of RM96 million versus RM27.2 million.


Is the company finally driving itself out of the rut?


While it is a definite positive development to be out of PN17, it remains to be seen if it can turn into a successful construction company.


As it is, the construction industry is not looking very rosy with thin margins on the back of rising material costs.


Under the regularisation plan, KTB has proposed to dispose of its express bus business to Nadicorp Holdings Sdn Bhd, a company with interests in transportation, manufacturing, agro-business and property, for a nominal sum of RM1.


KTB’s regularisation plan also includes a private placement of 125 million new shares, representing 26.61% of its existing shares to independent third parties at an issue price of 16 sen each.


The third parties are SWC Capital Sdn Bhd, AJK Hartanah Sdn Bhd, Supreme Home Appliances Sdn Bhd and several other individuals.


KTB said it has seven construction projects totalling RM485.4 million.


Recently, it bagged a RM153.1 million contract to provide labour and materials for the construction of a Perumahan Rakyat 1Malaysia (PR1MA) housing project in Pahang.


The project comprises 340 units of single storey semi-detached houses, and eight single-storey bungalows.


The development also involves 652 units of single-storey terrance houses and 19 units of double-storey shop offices.


So far, it appears that investors are pretty optimistic KTB is finally on the mend but I would not bet my money on this until it starts to turn around its financials.
#KTB

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