KUALA LUMPUR (June 25): Pesona Metro Holdings Bhd (KL:PESONA) expects another record year in 2026 for earnings, on stronger income from property development and construction activities.

The company is eyeing RM500 million worth of construction contracts this year, on top of outstanding jobs worth RM2.1 billion in its books, said its chairman Wie Hock Kiong after the company’s post-AGM media briefing on Thursday. Pesona Metro also has unbilled property sales of RM600 million to be recognised through end-2027, he noted.

The group plans to pay a dividend of about two sen per share for FY2026, up from the 1.4 sen interim dividend for FY2025, on expectations of another record year.

For the first quarter ended March 31, 2026 (1QFY2026), the company recorded a net profit of RM12.69 million, 69.2% higher than the RM7.5 million recorded a year earlier, as revenue expanded 30.93% year-on-year to RM192.34 million, up from RM146.9 million.

Last year, the company’s annual earnings almost doubled to RM39.18 million for the financial year ended Dec 31, 2025 (FY2025), while revenue increased by 37.91% to RM705.93 million from RM511.88 million in FY2024, driven by higher construction activity, improved project margins and maiden full-year earnings contribution from its property development.

The group is looking to add to its landbank, with two to three potential sites under evaluation. It has also received joint venture proposals from landowners.

Meanwhile, the group also expects improvement in margins this year, supported by measures to mitigate higher input costs. These include working with concrete suppliers to establish on-site plants for larger projects to reduce transportation costs and locking in steel bar prices below those assumed when tendering for its ongoing projects.

Despite growing interest in data centre developments, Wie said the group will continue focusing on its core strengths in residential, commercial and public amenities projects.

"We are aware of this [the data centre market is hot] and we have been approached.  But we still wish to concentrate on what we know best and where we can deliver higher value. We do not discard that, but it is not our priority at the moment," Wie said.

Wie has also been increasing his stake in the company. Through his private vehicle, Kombinasi Emas Sdn Bhd, he held a 45.359% stake in Pesona Metro as at June 19, 2026, up from 42.397% as at Sept 2025. 

Asked about his increased stake in Pesona Metro, Wie said it is driven by his confidence in the company's long-term prospects.

"I see the value in the company. We are not sure why our shares are undervalued or why the P/E is low. But if you look at the potential of the company and its contribution over the next couple of years, I think there's good value," he said.

Pesona Metro's share price has fallen 15% from its recent peak of 39 sen in February. The stock closed up half a sen or 1.54% to 33 sen on Thursday, valuing it at RM229 million.

The stock is trading at a 12-month trailing price-earnings ratio (PER) of 5.1 times, according to AskEdge data.

This compares to Gamuda Bhd’s (KL:GAMUDA) PER of 25.4 times and Sunway Construction Group Bhd’s (KL:SUNCON) PER of 24.4 times, Pintaras Jaya Bhd’s (KL:PTARAS) PER of 8.4 times, Jaks Resources Bhd’s (KL:JAKS) PER of 8.6 times and Inta Bina Group Bhd’s (KL:INTA) PER of 5.9 times.