Perak Transit

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4Q Results

Revenue: +16%; RM 50m
EPS: -2%; RM 19m
Net Asset RM 0.75

https://www.bursamalaysia.com/market_in ... id=3638120

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1Q Results:-

Revenue: -4%; RM 46m
EPS: -28%; RM 16m;
NAV: 0.73

https://www.bursamalaysia.com/market_in ... id=3667696

https://disclosure.bursamalaysia.com/Fi ... TTACHMENTS

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We Think That There Are Some Issues For Perak Transit Berhad (KLSE:PTRANS) Beyond Its Promising Earnings

May 28, 2026

Perak Transit Berhad expanded the number of shares on issue by 8.5% over the last year.

Perak Transit Berhad has improved its profit over the last three years with an annualized gain of 22% in that time. But EPS was only up 12% per year, in the exact same period. However, net income was pretty flat over the last year with a miniscule increase. Meanwhile, EPS was actually down a full 4.4% over the period, highlighting just how different the profits look from a per-share perspective.

Its earnings per share have grown at 12% over the last three years.

Debt is not well covered by operating cash flow
Does not have a meaningful market cap (MYR222M)
Dividend of 5.56% is not well covered by free cash flows

Source: Simply Wall St

https://simplywall.st/stocks/my/transpo ... t-berhad-1

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Why is Share Price of Perak Transit weak?

Perak Transit Bhd's (PTRANS) prolonged share price weakness stems from a combination of aggressive insider selling, massive forced margin calls and lingering investor caution regarding rising trade receivables and projected growth.

The key factors impacting the stock include:

Insider Share Disposals: Founder and managing director Datuk Seri Cheong Kong Fitt significantly pared down his direct and indirect stakes in the company, dropping his ownership to below 10%.

Forced Selling and Margin Calls: The sudden and massive plunge in share value was largely triggered by margin calls. When heavily-pledged shares faced severe selling pressure, it sparked rapid market-wide liquidation.

Rising Receivables: Despite showing overall healthy profit margins, the company's financial reports indicated a sharp jump in trade receivables, causing investor concern over delayed tenant rental payments.

Muted Growth Projections: While maintaining a solid foundation with its three purpose-built transport terminals in Ipoh, Kampar, and Bidor, analysts project long-term earnings growth that could lag slightly behind the broader Malaysian market, curbing aggressive buying interest.

Share Dilution: An 8.5% increase in total shares over the past year has diluted earnings per share (EPS), splitting net income across a larger pool of shares.The company maintains that its core terminal operations, property ventures, and dividend payouts remain completely unaffected by the market sell-off. However, broader market sentiment and trust in the stock have taken time to recover.

Source: Google AI

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Accounts Receivables

The bulk of Perak Transit Berhad’s elevated accounts receivable is owed by two specific tenants who operate as event operators.

Key Details of the Debt

Who owes the money: The debtors are two commercial tenants who are event operators.

They lease all of the advertising and promotional spaces across Perak Transit's main public transport terminals: Terminal Meru Raya (TMR), Kampar Putra Sentral (TKP), and Bidor Sentral (TBS).

The amount owed: The total outstanding distressed receivables peaked at approximately RM30 million to RM40 million, accounting for roughly 60% of the company's total receivables at its highest point.

Reason for the debt: The spike was driven by significant delays in rental and promotional space payments from these operators.

Current status: Management from Perak Transit established a repayment plan and structured grace period for these operators.

The company has noted that repayment is ongoing, mitigating the risk of full impairment or writing off the debt.

Source: Google AI

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Frankly Speaking: Puzzling share buyback scheme at Perak Transit

The company feels that the fair value of its shares is 73 sen each.

However, share buyback exercises should only be done by companies sitting on excessive cash, which is not the case with Perak Transit.

The company has fixed deposits of RM180.15 million, of which RM150.24 million is tied up as security for its issuance of Islamic bonds.

The major shareholders of Perak Transit, had a block of shares forced sold in October last year.

Cheong has not gone to the market in a big way to buy up shares after the selldown. Instead, he has been converting the company’s warrants, which is surprising.

The conversion rate of the warrants is 50 sen, while the share price closed at 21.5 sen last Friday. Why convert warrants that are out of the money?

The top 30 shareholders hold 47.7% equity interest in the company, indicating a loose shareholding structure at Perak Transit.

Source: The Edge Malaysia

https://theedgemalaysia.com/node/813868