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Overview
Financial Highlight
Headlines
Business Background PRG Holdings Bhd is in the business of investment holding and the provision of management services. The company segment includes Manufacturing, Property development and construction and Other. The Manufacturing segment engages in the manufacture, sale, and marketing of rubber strips and narrow fabrics, upholstery webbings, covered elastic yarn, rigid webbings, safety webbing, and metal components for the furniture industry, trading and commission agent. The Property development and construction segment are involved in the development and construction of residential and commercial properties. Its Other segment comprises of operations related to investment holding. The company’s manufacturing facilities are located in Malaysia and Vietnam.
  hallelujah maybe there is good news coz the Director been acquiring the shares quietly. 19/04/2017 15:00 buyfreedom http://www.theedgemarkets.com/article/prg-inks-strategic-agreement-china-firm-undertake-construction-jobs 17/07/2017 16:07 PYLINK 17-Jul-2017 Additional Listing Exercise of Warrants - 40,000 shares at 0.375. 19/07/2017 17:59 leekh91 KUALA LUMPUR (Oct 26): PRG Holdings Bhd today signed a collaborative agreement with Jiangsu Provincial Construction (M) Sdn Bhd (JPC) to venture into highway, bridge, port, housing development, as well as project investment and financing projects in Malaysia and abroad. PRG said the agreement formalises the commitments made by both parties in an earlier agreement inked in July, and regulates their rights and obligations as shareholders in the joint venture entity named Premier JPC Sdn Bhd. PRG will hold a 51% stake in Premier JPC, while the remaining 49% will be held by JPC. The collaboration will include construction projects potentially worth RM5 billion to be developed by PRG and the subsidiaries of Syarikat Perumahan Negara Bhd (SPNB), PRG said in a statement. 27/10/2017 09:25 commonsense Both the company’s business in manufacturing (via subsidiary Furniweb) and property development are facing operational challenges which had affected the profit to shareholders. The 9m18 result delivered a total loss of RM3.3mil to the shareholders with 4Q18 also expected to still record a loss. Manufacturing business saw a drop of profit by almost 70% due to the intense competition in the industry. The sales in property has dropped by almost half due to lower sales from the Picasso Residence project. Management is planning to venture into the affordable housing segment which I think is a bit late given the already intense competition in the segment. Even those that are well known in the segment (like Hua Yang) is finding it difficult to deliver profit to their shareholders. In addition, with the new regulation imposed by the Pakatan government, where any residences to be considered affordable, it will need to be have at least 900 sq ft of size and be price below RM300k. This would only mean lower profit margins to the developers. If you are looking to diversify your portfolio outside of PRG Holdings (due to its earnings uncertainties and bleak business outlook), I would recommend you to look at MBMR. MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.9x PE (based on target FY18 profit of RM145mil. 9m profit is already RM106mil). PB is low at only 0.7x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17. FY19 growth will be driven by the still high demand of the new Myvi and the newly launched SUV Aruz and also the newly revamp Alza in 2H19. The recent announcement of closure and potential disposal of the loss-making alloy wheel manufacturing business alone is expected to boost the company’s profit by an additional RM20mil. I am projecting a profit to shareholder of RM170 mil for FY19 which at the current price values MBMR at only 5.9x PE. Please go through the analyst reports (https://klse.i3investor.com/servlets/stk/pt/5983.jsp) and do your own analysis before making any decisions. There are 8 analysts in total covering the stock with most of them having a TP of above RM3 (all have a buy rating). The average TP for the 8 analysts is around RM3.50. Good luck. 03/02/2019 10:21  |
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