Year-on-year, Perak Transit’s total revenue and PBT for 2Q21 were higher in comparison to a total revenue of RM19.4 million and a PBT of RM6.2 million reported for 2Q20, an increase of 80.2 and 188.7 per cent respectively.
KUCHING: Perak Transit Berhad (Perak Transit) reported stronger earnings for the second quarter ended June 30, 2021 (2Q21), mainly driven by higher contributions from the Integrated Public Transportation Terminal (IPTT) operations.
It posted a total revenue of RM34.9 million and a profit before tax (PBT) of RM18 million for 2Q21, a slight decrease of 1.4 per cent and increase 0.7 per cent respectively, in comparison to the preceding quarter’s revenue of RM35.5 million and PBT of RM17.9 million.
The slight decrease was due to lower sales volume from petrol station operations in the current quarter.
Year-on-year, the group’s total revenue and PBT for 2Q21 were higher in comparison to a total revenue of RM19.4 million and a PBT of RM6.2 million reported for 2Q20, an increase of 80.2 and 188.7 per cent respectively.
“Revenue in the current quarter was higher mainly due to higher rental income from the leasing of advertising and promotional (A&P) spaces at Kampar Putra Sentral which commenced in September 2020,” Perak Transit said in a press statement.
“Besides that, other contributor includes stable operations from the matured Terminal Meru Raya. Stage buses can operate as usual during Movement Control Orders (MCO) and Full MCO (FMCO). Additionally, petrol stations’ revenue is higher because of higher fuel price in tandem with higher global oil price.”
AmInvestment Bank Bhd (AmInvestment Bank) continue to like Perak Transit for its unique business model, being the operation of modern public transport terminals that emulate airports with spacious and brightly lit shopping, dining and waiting areas, and clean public facilities, particularly the washrooms.
“These entice visitors to spend more money and time in the terminal prior to their departure or upon their arrival, or while sending off or picking up their loved ones.
“This captive traffic is monetised in the form of rental incomes from commercial units and advertising space within the terminal,” it explained in its notes yesterday.
Furthermore, Perak Transit has proven the commercial viability of this business model in its Terminal Meru Raya in Ipoh (an interstate transportation hub) and the newly opened Kampar Putra Sentral.
Kampar Putra Sentral is also buoyed by a high and fast-growing student population in the campus town of Kampar. This student population has high propensity to travel during school breaks and festivities, as well as during weekends for leisure; and 3. The vast opportunities to replicate this successful business model.
“Already, it has at least three more projects in the pipeline, namely, in Bidor, Tronoh and Alor Setar,” AmInvestment Bank put forth.
“At seven to eight times forward earnings, we believe Perak Transit offers investors a good opportunity to own a defensive public infrastructure business that is replicable for growth at bargain valuations.”
Moving forward, Kenanga Investment Bank Bhd (Kenanga Research) expect Perak Transit to be less aggressive in securing additional terminal management services contracts in the rest of FY21, as the prolonged lockdowns and the subdued footfall in third party terminals may render investing at this moment less attractive.
“As any new contracts in the remainder of FY21 would have likely only started contributing in FY22, we have marginally lowered FY22’s estimated core net profits by two per cent to reflect that,” it commented.
“Bidor Sentral’s construction is expected to begin in September/October 2021, which is slightly later than the initially guided July 2021, but expected given the prolonged lockdowns. Earnings from Bidor Sentral would only start to contribute in 2HFY23.”