Chapter 5

Sum-of-the-Parts

Figures converted from IDR at historical FX rates — see data/company.json.fx_rates. Ratios, margins, and multiples are unitless and unchanged.

At US$0.043 (24 July 2026, market capitalisation about $130M), PBSA looks cheap on the headline: 7.3x reported earnings, 2.5x book, a 7.7% dividend yield. But a third of that reported profit is an unrealized securities mark. Once the cash-and-securities stack is valued separately, the market is paying roughly 10x normalized construction earnings — a full multiple for a single-customer contractor — and the securities cushion that flattered the headline P/E has already thinned by about 40% in one quarter.

What the price is

Source: price per IDX daily close 24 Jul 2026; 3,000,000,000 shares and equity $55.8M per FY2025 Annual Report [1]; $0.0036 dividend per FY2025 results [2].

PBSA has 3,000,000,000 shares listed, of which 15,113,700 now sit in treasury after the early-2026 buyback, leaving roughly 2.985bn outstanding [3]. At US$0.043 that is a market capitalisation near $130M. Reported FY2025 net profit was $19.2M and EPS $0.0064, so the trailing multiple is 7.3x — the kind of number that flags a value screen [4]. The $0.0036 per-share dividend declared for FY2025 lifts the yield to 7.7% [5]. On book value, equity of $55.8M puts the stock at 2.5x [6].

The reported P/E is the wrong denominator. FY2025 net profit carried a $6.7M unrealized fair-value gain on the securities portfolio and a $0.34M realized gain; stripping both leaves construction-only net profit of about $12.2M (Earnings Quality) [7]. On that base the whole company trades at 11.5x, not 7.3x.

Source: reported EPS $0.0064 and net profit $19.2M, FY2025 Financial Highlights [8]; normalized construction net $12.2M derived from the FY2025 income statement [9].

Two stacks, not one number

The cleaner way to value PBSA is to separate what it owns from what it does. The company runs with effectively no interest-bearing debt, so its financial assets — cash plus the fair-value securities portfolio — are a stack that can be handed to shareholders or lost to a market move, independent of the construction business. At 31 December 2025 that stack was $28.4M: $8.7M of cash and $19.7M of short-term investments [10]. Subtract that from the $130M market capitalisation and the market is implicitly paying about $111M for the construction operation itself — 9.1x its normalized $12.2M of earnings, or 7.6x its $14.6M of operating income [11].

That was the year-end picture. The most recent balance sheet is worse for the cushion. By 31 March 2026 the cash line had fallen to $3.6M and the securities portfolio to $11.6M — a combined $15.2M, down $11.3M in a single quarter [12]. On the current stack the same arithmetic values the construction business at about $115M, or 10.1x normalized earnings and 8.4x operating income.

Source: market cap at US$0.043 x 3.0bn shares; financial stack = cash plus short-term investments, FY2025 AR [13] and Q1 FY2026 statements [14]; construction stub = market cap less the stack.

The green block is the part of the price a buyer can, in principle, underwrite with a balance sheet. It shrank from a fifth of the market capitalisation to about an eighth in three months, as the quarter's $4.0M portfolio loss and negative operating cash flow drained both cash and marks (Capital and Control). The low headline P/E rested partly on that cushion; the cushion is now materially smaller.

Source: cash and short-term investments, FY2025 AR [15] and Q1 FY2026 statements [16].

Is ten times fair for the construction stub

A single-customer contractor with a roughly 12-month backlog does not obviously deserve a full-market multiple, and 10x normalized earnings is not cheap for that risk profile. The case for it rests on two numbers. First, the construction business earns an exceptional return on the capital actually tied up in it: with the $28.4M financial stack removed, operating equity at end-2025 was about $27.4M, and $12.2M of normalized profit on that base is a return above 40% [17]. The business is advance-funded and asset-light; it needs little capital to grow. Second, it is growing quickly: Q1 FY2026 operating income rose 59.8% year on year to $4.6M on revenue up 46.8% [18]. Measured against a forward run-rate rather than trailing FY2025, the same price implies a lower multiple.

The evidence points to a construction stub priced for quality and growth rather than for its concentration risk. The strongest fact against that read is that the growth and the returns both depend on one conglomerate's palm-oil downstream capex (Palm Oil Capex): every customer above 10% of revenue and the entire disclosed order book is Sinar Mas / Golden Agri, and the backlog turns over annually with no multi-year visibility. A single lost capex cycle would compress both the earnings base and the multiple at once. What would change the read is order-book replenishment outside that group, or a durable second end-market — neither of which the filings yet show.

The price's own history is the clearest anchor

With no sell-side coverage and no consensus target, the most honest external reference is how the market itself has valued PBSA. Two years ago the stock traded around US$0.023, a market capitalisation near $69M — 5.2x the FY2024 earnings and 1.4x book. In the H2-2025 spike it reached a US$0.090 close ($270M), 14.1x earnings and 4.8x book, before collapsing [19]. Today's 7.3x reported and 2.5x book sits between the two, still roughly 40% above the pre-spike multiple.

Source: closing prices and market capitalisation from Share Performance Highlights, FY2025 AR [20]; earnings and equity per Financial Highlights [21].

The multiple has re-rated even after a 64% fall from the peak. That the price still trades on momentum as much as fundamentals is visible in the tape: it moved from US$0.043 to US$0.046 and back to US$0.043 in the three sessions to 24 July 2026 on no disclosed news. A buyer here is not just paying for the construction business; they are paying a post-spike multiple set by a thin 16% float.

What the range depends on

Because the financial stack is close to a known quantity, the valuation is most sensitive to the multiple placed on the construction stub. Each additional turn of that multiple on $12.2M of normalized earnings is worth about US$0.0038 per share. The table below holds the current $15.2M financial stack fixed and varies the construction multiple.

Source: derived — construction value = $12.2M normalized earnings x multiple; implied price = (construction value + $15.2M financial stack) / 2.985bn shares [22].

At the current US$0.043, the market is placing the construction business at almost exactly 10x. An 8x multiple — still a fair figure for a concentrated contractor — implies about US$0.036, roughly 18% below the price; a growth-premium 12x implies about US$0.051. The second sensitivity is the securities portfolio itself: at $11.6M it is US$0.0039 per share, and Q1 FY2026 showed that number can swing by a third of its value in one quarter [23]. A reader who marks the portfolio conservatively and the construction stub at a concentration discount lands well below US$0.043; one who capitalises the recent construction growth lands above it. The gap between those two views, not the headline 7.3x, is the valuation question.