KUALA LUMPUR (Oct 28): Construction firm Pintaras Jaya Bhd (KL:PTARAS) is acquiring 11 pieces of freehold land land totalling 33 acres in Kapar for RM22.9 million cash.

The property, which is an oil palm plantation, is currently categorised as agricultural land but is zoned for residential development, Pintaras said.

The acquisition represents an opportunity “to diversify substantially into property development in the future”, the group said.

It is buying the lands from Tiong Lee Co, whose shareholders are Ng Wee Chit, Ng Kheng Lau and Ng Koon Keng, its filing showed.

The company will pay for the acquisition using internal funds, it said.

As at end-June, Pintaras had cash and bank balances of RM12.87 million. Borrowings totalled RM15.73 million.

Pintaras operates two key segments, namely construction contracts focusing on foundation works, and manufacturing of industrial pails and cans, according to its official website.

The group is in its second consecutive year of loss in the financial year ended June 30, 2024 (FY2024).

Net loss for the year widened to RM4.97 million or three sen per share, from RM2.12 million or 1.3 sen per share, as revenue fell 8.45% to RM304.92 million, from RM333.08 million.

The weaker performance was attributed to wider losses from its construction segment on reduced activities and liquidated damages in Malaysia and lower rates in Singapore, partly offset by improved manufacturing segment top and bottom lines.

Despite this, Pintaras maintained its full-year dividend at five sen per share, unchanged from FY2023.

Shares of Pintaras Jaya settled unchanged at RM1.48, giving it a market capitalization of RM245.5 million. The counter is down 7.5% this year.