PTT Synergy Group's group managing director Teo Swee Phin.
PETALING JAYA: PTT Synergy Group anticipates sustainable earnings growth over the next three to five financial years.
The construction and industrial property development company said growth will be underpinned by its diversified income stream and strong project pipeline.
Group managing director Teo Swee Phin told StarBiz that the company also plans to reward shareholders and expects dividend payments to begin by the first or second quarter of the financial year ending June 30, 2026 (FY26).
The group originally focused on building material supply under the name Grand Hoover Bhd. It underwent a major rebranding in early 2021 and assumed the current name.
The company diversified into three business segments – construction, industrial property development and warehouse, and logistics solutions apart from its trading operations.
Following this shift, PTT posted a turnaround with the group achieving a net profit of RM8.42mil in FY22.
For FY24, net profit rose to RM20.59mil, with the construction segment contributing over 80% of total revenue.
Going forward, Teo has set his sights on evolving PTT into a solutions-driven contractor. “We want to turn into a more solutions-provider contractor instead of the conventional contractor,” he says.
In the first quarter ended Sept 30, 2024 of FY25 (1Q25), PTT posted a net profit of RM2.99mil, down from RM3.35mil in the same period last year. Revenue, meanwhile, rose 43% to RM96.86mil.
The drop in profitability was due to elevated interest rates and high material costs.
PTT said it remains committed to disciplined cost management and will actively pursue new business opportunities.
PTT’s expansion has led to a heavier balance sheet, with total assets reaching RM1.08bil and a net gearing ratio of 1.44 times as of June 2024.
Teo said the group is “managing this carefully because once the properties are completed, they will be retailable”.
Notably, it has a robust pipeline of industrial property development projects.
PTT’s smart warehouse development –the PTT Logistics Hub 1 at Elmina Business Park in Shah Alam, Selangor – is estimated to have a gross development value of RM145mil and is slated to be completed in 2Q25.
“By having this particular smart warehouse solutions business, it can complement the construction segment, and create a more sustainable kind of income for PTT. There are more smart warehouses in the pipeline,” said Teo.
As for construction, PTT recently secured two new projects worth RM169.85mil.
The group is also on the lookout for more land bank. “Buying land is our core business. Because without land, we are unable to build warehouses.”
Meanwhile, its trading segment contributed about 18% to PTT’s total revenue in FY24. It plans to maintain this operations but has no immediate plans for expansion.
