Icon8888 Gossips About Stocks
(Icon) PRG Holdings - Explosive Earnings Growth Ahead (Easily 200%)
Executive Summary
(a) PRG Holdings Bhd (formerly known as Furniweb Industrial Products Bhd) was traditionally involved in manufacturing of furniture webbing, etc.
(b) In September 2014, Datuk Seri Yeoh Soo Ann emerged as the dominant shareholder after acquiring 25% stake in Furniweb. The company changed its name to PRG Holdings Bhd.
Yeoh is a turnaround expert. Please refer to picture below for further details.
(c) With new major shareholder and management team in place, PRG diversified into property development in 2014 by entering into a joint venture to develop a small parcel of land at Jalan Jelatek, near Jalan Ampang.
The project is called Picasso Residence, comprises 2 blocks of condominiums with 472 units. It has GDV of RM600 mil and expects to generate net profit of RM100 mil when completed in 2017 / 2018.
PRG owns 60% of the JV and is entitled to RM60 mil net profit. This works out to be approximately RM15 mil net profit per annum over the next 4 years. The company expects the project to start contributing to group profit by end 2015.
The profit from the project is very substantial. PRG's furniture webbing business generates about RM5 mil net profit per annum. With the additional earnings from Picasso Residence, net profit will grow by 300% to RM20 mil.
(d) Due to its strategic location (10 minutes walk from Jelatek LRT station and few kilometers from KLCC), Picasso Residence has been very well received. During soft launch in Feb 2015, the company managed to sell 276 units, representing closed to 60% of the total units for sale.
Official launch will be on coming Saturday, 28 March 2015.
(e) In the meantime, the furniture webbing business is expected to do well in the immediate future as 80% of its products are exported.
(Datuk Seri Yeoh Soo Ann, major shareholder of PRG. An accountant by training, Yeoh is a turnaround expert.
In 2012, he nurtured loss-making GW Plastic back to health before selling it to Scientex Packaging for RM283 mil.
In July 2013, he acquired 30.5% equity interest in Encorp from Datuk Seri Effendi. Once again, he managed to turn the company around within short period of time. He sold his stake to Felda Investment Corp in May 2014 at a price almost double his original cost of investment.
Upon exiting Encorp, Yeoh cast his sight on PRG. In September 2014, he took control of the group by acquiring a 25% stake. He is now the CEO and is involved in day to day operation of PRG Group.
Don't you want to ride with him ?)
Prg Holdings Bhd (PRG) Snapshot
|
Open
0.66
|
Previous Close
0.66
|
|
|
Day High
0.68
|
Day Low
0.63
|
|
|
52 Week High
08/25/14 - 0.94
|
52 Week Low
12/16/14 - 0.57
|
|
|
Market Cap
91.3M
|
Average Volume 10 Days
17.8K
|
|
|
EPS TTM
0.02
|
Shares Outstanding
144.9M
|
|
|
EX-Date
09/4/14
|
P/E TM
39.6x
|
|
|
Dividend
0.02
|
Dividend Yield
2.36%
|
PRG Holdings Berhad (formerly known as Furniweb Industrial Products Berhad) manufactures and sells upholstery webbings, covered elastic yarns and metal components for use in the furniture industry.
PRG Holdings Berhad sells its products primarily in Malaysia, the Asia Pacific, Europe, and North America. PRG Holdings Berhad was founded in 1983 and is headquartered in Seri Kembangan, Malaysia.
(Furniture webbing)
As at 31 December 2014, the group has net asets of RM108 mil, cash of RM16 mil and loans of RM65.8 mil. This translates into net gearing of 0.46 times.
The gearing looked high. However, the bulk of the long term borrowings of RM58.8 mil are property development related project debts (before venturing into property development, the group's borrowings was very low at less than RM10 mil as at 31 December 2013).
These borrowings are likely housed under its 60% owned subsidiary, which is the JV vehicle for the development project.
In my opinion, there is no need to be unduly worried about the gearing. Those debt will be extinguished following the completion of the development project. The question to be asked is whether the project will be a success ? As explained below, the development project has been very well received. During soft launch in February 2015, the group has managed to sell closed to 60% of the units.
Over the past few years, the group reported net profit of approximately RM5 mil per annum. Those profits were purely from manufacturing and sales of furniture webbing, etc. The group only ventured into property development in 2014.
Annual Result:
| F.Y. | Revenue ('000) | Profit Attb. to SH ('000) | EPS (Cent) | PE | DPS (Cent) | DY | NAPS | ROE (%) | |
|---|---|---|---|---|---|---|---|---|---|
| TTM | 92,295 | 2,374 | 1.98 | 33.84 | - | - | 0.7476 | 2.65 |
 |
| 2014-12-31 | 92,295 | 2,374 | 1.98 | 32.83 | - | - | 0.7476 | 2.65 |
|
| 2013-12-31 | 78,817 | 4,746 | 4.89 | 18.00 | 1.50 | 1.70 | 0.8525 | 5.74 |
|
| 2012-12-31 | 84,487 | 4,087 | 4.51 | 8.21 | - | - | 0.8138 | 5.54 |
|
In the latest financial quarter, the group reported substantial growth in net profit to RM2.12 mil.
Quarter Result:
| F.Y. | Quarter | Revenue ('000) | Profit before Tax ('000) | Profit Attb. to SH ('000) | EPS (Cent) | DPS (Cent) | NAPS |
|---|---|---|---|---|---|---|---|
| 2014-12-31 | 2014-12-31 | 30,025 | 1,928 | 2,123 | 1.47 | - | 0.7476 |
| 2014-12-31 | 2014-09-30 | 22,681 | 1,373 | 1,470 | 1.38 | - | 0.7215 |
| 2014-12-31 | 2014-06-30 | 20,544 | -645 | -769 | -0.85 | - | 0.8304 |
| 2014-12-31 | 2014-03-31 | 19,045 | -268 | -451 | -0.50 | - | 0.8451 |
| 2013-12-31 | 2013-12-31 | 20,887 | 1,146 | 1,060 | 1.09 | - | - |
| 2013-12-31 | 2013-09-30 | 19,603 | 1,927 | 1,679 | 1.86 | - | 0.8397 |
| 2013-12-31 | 2013-06-30 | 19,145 | 2,079 | 1,567 | 1.73 | - | 0.8435 |
| 2013-12-31 | 2013-03-31 | 19,182 | 740 | 440 | 0.49 | - | 0.8212 |
Manufacturing of webbing, yarn, rubber strips, etc accounted for the bulk of the profit. Property division reported a loss due to start up costs.
The latest quarter results was boasted by forex gain of RM0.966 mil.
The strong US dollars augurs well for the group as it exports closed to 80% of its products (RM63 mil out of RM79 mil sales) :-
Management's comments on the company's prospects as per latest quarterly report :-
============================================
THE DEVELOPMENT PROJECT
Picasso Residence
(Picasso Residence, comprises 2 blocks of condominiums with 472 units. GDV of RM600 mil.
Launched in early 2015. Target completion by 2017 / 2018.
Mah Sing's M City is nearby.
The project is well received because it is priced at RM1,000 psf, lower than the RM1,200 psf market price at the surrounding area)
(Picasso Residence is within 10 minutes walking distance from Jelatek LRT Station at Ampang.
It is also closed to the various highways spanning the area)
(The Sun article dated 27 January 2015. According to management, the project should start contributing to group earnings by end 2015. Total net profit would be RM60 mil, to be booked in over four years)
(According to Picaso Residence's facebook posting, they managed to sell 276 units during soft launch in February 2015. This represents 60% of total units for sale. Official launch on this Saturday, 28 March 2015)
=================================================
Appendix 1 - PRG Holdings Bhd
Appendix 2 - Property Blogger's View on Picasso Residence
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
More articles on Icon8888 Gossips About Stocks
(Icon) Jaks Resources - IRR Model Shows That RM300 mil Net Profit p.a. For 30% Stake Is Plausible
Created by Icon8888 | May 01, 2020
(Icon) Notion VTec - Forget About The Virus, It Is Time To Rock and Roll
Created by Icon8888 | Mar 10, 2020
(Icon) Sam Engineering - Excellent Result. Share Price Can Potentially Double Within 2 Years
Created by Icon8888 | Mar 01, 2020
(Icon) Alliance Bank - One Off Provision Affected Previous Quarter Earning. Time To Buy On Weakness
Created by Icon8888 | Nov 13, 2019
Discussions
5 people like this. Showing 50 of 80 comments
1 more suggestion, can you improve on your cut N paste skill? its very messy. like a kindergarden boy.
2015-04-29 21:55
aiyo. where is the sifu? pls come out explain why u recommend this stock?
2015-05-07 19:20
That is why I pre emptied you by saying you can't differentiate investment from speculation
An investor will not cry pain every time share price drops. they are in the stock to see it grow over next few years. A speculator is different, they take a position to try to make quick profit by T+3. They will never understand why investors like us bought into PRG. Ha ha moron
2015-05-07 19:27
Straight man? You got no balls lah optimouse, this morning why you deleted your post in Fronton after the price went up?
2015-05-07 19:51
what do u expect from optigay ? Apart from number 1 chicken, he is also brainless and uneducated, can't differentiate speculation from investment
2015-05-07 19:58
He is the most reckless speculator I have ever seen. In and out of stocks, make few hundred bucks at a time, but when things turn sour, lost tens of thousands. I know him too well.
2015-05-07 20:10
how? icon8888, i followed your strong 200% recommendation to buy, now 2 months later it is still coma.
i want to sell also cannot sell, got 2000 big lot. how??
please advise.
2015-06-02 20:02
I am not surprised that speculators like you would complain. People who don't understand fundamentals based investment will panic whenever price drops a few sen. They don't understand that in an efficient market, it takes time for a company to be nurtured before it starts bearing fruits.
U better go back to play your wet market speculative counters instead of messing around
2015-06-05 13:28
Icon, based on this article, they havent launched the Picasso Residence yet.
http://www.thestar.com.my/Business/Business-News/2015/06/23/PRG-Holdings-cautious-on-Picasso-Residences-launch-date/?style=biz
Perhaps the surge in earnings may only be visible next year ? Normally, when is the peak earnings recognition period in a property development project ?
2015-06-30 14:03
Noby u asked the right person. I have the answer.
Few months ago, I called up to pretend interested buying. I asked the sales person when is the official launch, he said will be delayed because once official launch, they can't give out certain discounts (something like that).
2015-07-01 23:48
Optimus if u laugh at GOB, I admit defeat.
But PRG I don't admit
Not that I stubborn (if wrong I admit loh, what for ego ?)
PRG from day one I already expect it to be a 2016 story as it is very clearly told by CEO that earnings will start coming in by end 2015
Unless proven otherwise, it is Still on track
2015-07-01 23:51
what do i gain when u admit defeat? its your constant abusive stmt towards me.
its just some reminders to yourself that you are not as good as you thought. and i m not as bad as u thought.
2015-07-02 00:00
I attack u not because I feel that I am good
I attack u because I feel that u r bad
Not that u r bad in making financial return (bring stupid is not a crime)
Bad in terms of your abusive behaviour
I am surprised that until now you still not able to understand the nature of conflict between us
2015-07-02 00:05
i had warned u on GOB when u were asking for comments.
i said. recession is coming. your expectation may not turn out as u expected on all the figures.
also, i told u there is no luck with Equine aka KLIH. i handled KLIH goreng in the 90s. and directly dealt with the daughter of tansri T.
the operation failed on their side becos they have to maintain rm4.00 level despite entering into crisis.
our side have some arrangement with tansri T on financing and he was sued into bankruptcy and escape to london by us. the first tansri in history to enter bankrupt
2015-07-02 00:05
GOb 2015 story is supposed to be recession proof as they have RM500 mil sales locked in and RM500 mil mall in progress
The reason I admit defeat is because their recent results smelt of bad corporate governance (some unexplained huge expenses)
Until today, i stand by my previous decision making process. I believed It has been done in a rationale way
I lost because major shareholders dishonesty
This part I can't foresee.
I don't have mind reading power
2015-07-02 00:14
I don't remember whether I disagreed with you on that lah. Aiyoh so many donkey years ago...
Anyway, if the party concerned is a well known crook like ting Pek king and I insist jump in, then I am stupid
But this is not the case, right ?
To claim this and that after it happens is to me, sinkalan loh
2015-07-02 00:19
Icon. Property is gone story. Stop promoting! Before u hurt more ppl!. Use us mind to think. Where got such great deal and wait u so long to take?
2015-07-02 00:20
I also zzzz
Good night moussy
Good night paperplane (drink some Chinese herbal tea, don't always so heaty and angry)
2015-07-02 00:27
6 months already still the stock coma.
another big recommendation by icon8888.
2015-09-20 14:25
The new CEO (previously turnaround the encorp), his construction team was started to build repo in construction industry 1 year back, getting low profit margin project just to tell other developer (hey, im good in construction).He brought his team from encorp to PRG. going to have another big turn around? this stock must be patient, PRG can only make money after the project was launch and then profit from progress. But with current slow down in property market. they might delay their launching.Even after launching, they still have to wait for loan approval, sign S&P, only can make profit if sold out atleast 60%++, maybe 3-6months after launching.Please be patient, if want fast~ cincai pick a top volume share will do. when is good time to buy? when the stock is still coma. buy when people dont look at, sell when it became hot stock in town.
2015-11-05 23:51
Post a Comment
Featured Posts
MQ Trading Signals
Time
Signal
Duration
Type
2024-04-29 09:00:00
EMA 5
Hourly
SELL
Apps
Top Articles
1
2
3
AmInvest Research Reports
4
5
6
7
8
TA Sector Research
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
MrNobody
so the author is very good in TA and FA???
how come recommend 1 month ady coma 1 month??
2015-04-21 13:36