PRG (7168)

       1-     As of 8 January 2016, PRG has been on a strong uptrend as suggested by the upward sloping 20-Day and 50-Day Moving Averages. This bullish movement has brought PRG to close on Friday at its historical high of 1.02. One important point to note, PRG has broken its most major resistance of 1.00 conclusively to close at 1.02 with good volume of 5.3 million shares traded. PRG share price has demonstrated a steady and uninterrupted climb from 0.84 on 22-Dec-2015 to its historical high of 1.02 on 8-jan-2015 unabated though the market saw 2 circuit breaker dropped of the Shanghai stock exchange last week. 

This morning PRG seems resilience to the negative market; closing 12.30 pm unchanged with sellings well absorbed on volume of about 2 mil shares traded mostly at 1.02 & 1.03.

The trading pattern indicates that uptrend is intact and once selling at this 1.02 & 1.03 level subside; it should trend high. The highest done this moring at 1.04 is an all time record again. If ican can create a new record this afternoon, we should see my immediate TP of 1.10 & 1.20 easily met.

This is a strong indicator that the price should climb higher with my immediate TP is pegged at 1.10 & 1.20.

       2-    Another important point to note is that its major shareholder,  Dato Lua Choon Han, has been aggressively acquiring its share from the open market totaling 3.02 million or 2.08%,. This bodes well for the feel good factor to market participants.

Acquired
28/12/2015
560,000
0.900

Acquired
28/12/2015
620,000
0.907

Acquired
28/12/2015
545,000
0.910

Acquired
29/12/2015
450,000
0.910

Acquired
30/12/2015
390,000
0.901

Acquired
30/12/2015
453,000
0.905

Circumstances by reason of which change has occurred Acquisition of 3,018,000 Shares (%: 2.08) in the open market. Date Announced 31 Dec 2015
Category Changes in Director's Interest Pursuant to Section 135
Reference Number CS4-31122015-00012

Refer to Bursa announcement : http://www.bursamalaysia.com/market/listed-companies/company-announcements/4964633

3-    PRG is holding an EGM on Tuesday 12 Jan 2016. Market talk of something good to be announced at the EGM. Let’s see what goodies to come.

Refer to Bursa announcement : http://www.bursamalaysia.com/market/listed-companies/company-announcements/4950529

Highlights :

Property Development & Construction segment contributes to top-line” Group revenue was boosted by a positive performance from its relatively new Property Development & Construction Division. The revenue contributions are from a construction project in Ipoh (Perak). The new division is however still unprofitable, due to start-up costs and the timing of receipts for its property development project. Revenue from the group’s manufacturing division was flattish while margins were under pressure for some products from the group’s “Webbing, Yarn & Furniture Component” business segment.

“Picasso Residence in KL” In December 2013, the group’s wholly-owned subsidiary Premier Gesture S/B has proposed a 60:40 JV with Almaharta S/B for the development of a parcel of leasehold land along Jalan Jelatek (off Jalan Ampang), Kuala Lumpur. The JV company is named Premier De Muara S/B. The proposed residential development will comprise 2 blocks of 38-storey condominium consisting of 472 units. Now named as The Picasso Residence, the launch is expected during the first quarter of 2015. The GDV for this project is estimated at close to RM600 million, with an estimated GP margin of 32% over its 4- year development period. “Construction project in Ipoh” Meanwhile in July 2014, PRG announced that its wholly-owned subsidiary, Valencia Glade Sdn Bhd, has in July 2014 accepted a Letter of Award for the construction and completion of 4 blocks of 9-Storey Apartment Type A, 1 block of 9-Storey Apartment Type A1, a 1-storey gymnasium and swimming Pool and other common facilities in Pasir Putih, Ipoh (Treetops Residency). The contract is worth approximately RM50.2 million. This construction is now on- going and is expected to be completed in 1H/2016. As such, PRG anticipates that the group’s construction business may contribute to 25% or more of the net profits of the group.

“Formalizing diversification into Construction” Subsequently, on 9th November 2015, PRG announced the group’s formal intention to diversify into the construction business, with approval to be sought from its shareholders at the group’s next EGM scheduled to be held on this coming Tuesday, 12-Jan-2015 at 2.00pm.

This proposal is being undertaken in order to comply with Bursa Malaysia’s regulations. Pursuant to Paragraph 10.13 of Bursa’s Main Market Listing Requirements, a listed company must obtain its shareholders’ approval in a general meeting for any transaction or business arrangement which might reasonably be expected to result in a situation whereby: (a) the diversion of 25% or more of the net assets of the group to an operation which differs widely from those operations previously carried on; or (b) the contribution from such an operation of 25% or more of the net profits of the group.

With the diversification of the PRG’s principal activities to include property development as approved by the shareholders at the EGM held in April 2014, PRG had subsequently established a construction division to complement its property development activities. The construction division of the group currently operates under Premier Construction SB (“PCSB”) and is a registered Grade G7 contractor with Construction Industry Development Board of Malaysia (CIDB).

The Proposed Diversification complements the group’s existing business in property development and enables the group to undertake complementary activities in property development, construction and project management services.

PRG 5 Years Revenue & Profit Trend

Date

Financial
Year

No.

Financial
Quarter

Revenue
(RM,000)

Profit Before
Tax (RM,000)

Net Profit
(RM,000)

Earning
Per Share (Cent)

Dividend
(Cent)

NTA
(RM)

Download
Report

19/11/2015

31/12/2015

3

30/09/2015

30,013

1,564

1,638

1.13

0.00

0.782

 11%

27/08/2015

31/12/2015

2

30/06/2015

32,450

1,675

1,517

1.05

0.00

0.763

 297%

28/05/2015

31/12/2015

1

31/03/2015

26,821

-480

-361

-0.25

0.00

0.748

 20%

27/02/2015

31/12/2014

4

31/12/2014

30,025

1,928

2,123

1.47

0.00

0.748

 100%

27/11/2014

31/12/2014

3

30/09/2014

22,681

1,373

1,470

1.38

0.00

0.722

 12%

18/08/2014

31/12/2014

2

30/06/2014

20,544

-645

-769

-0.85

0.00

0.830

 149%

29/05/2014

31/12/2014

1

31/03/2014

19,045

-268

-451

-0.50

0.00

0.845

 203%

28/02/2014

31/12/2013

4

31/12/2013

20,887

1,146

1,060

1.17

0.00

0.853

 14%

27/11/2013

31/12/2013

3

30/09/2013

19,603

1,927

1,679

1.86

0.00

0.840

 68%

29/08/2013

31/12/2013

2

30/06/2013

19,145

2,079

1,567

1.73

0.00

0.840

 6%

27/05/2013

31/12/2013

1

31/03/2013

19,182

740

440

0.49

0.00

0.820

 14%

28/02/2013

31/12/2012

4

31/12/2012

19,087

1,840

1,235

1.37

0.00

0.810

 33%