Directors collect cheap2 la bro apa lagi. It's gloomy right now but looking at the vaccination rate, matter of time before we back to normal (or new normal). They're ramping up vaccination at LGK and BKI so expect travel and leisure to reopen soon. Strong support at .20 imo. Good luck!
Hello Ms Parlo, I'm your ex-tenant at Level 55. Sold off my property at huge loss months back. Don't you dare dupe us again or else we will go after your Skin, okay ! 1H Financial reported on 30Aug21 was a 15.3 % decline. What's going on the last 2 days with the price jump???
PARLO Berhad – The Dark Horse In The Making? Share Price Has Outperformed GENETEC?
GENETEC is undoubtedly the hottest stock and the shiniest star in BURSA this year with a whopping Year-To-Date gain of more than 2500%. However, did you know that the share price of PARLO has outperformed GENETEC recently?
At the same time, I found that the volume of PARLO has increased a lot since the founding of the subsidiary, V Care Industry Sdn Bhd (V Care). The volume spiked from below 500k in July 2021 to the highest volume of 55.78 mil on 7 Sep 2021.
The Beginning of A New Era?
On 29th Oct, the Independent and Non-Executive Chairman of PARLO, Mr. Chan Wing Kwong resigned and Yan Foong Sdn Bhd (The vehicle controlled by the major shareholder – Yap Fu Fah) sold their shares to the new shareholder, ARIV Capital Sdn Bhd (ARIV). Based on the chronology events, it is an educated guess to link up the new owner and the new business venture of PARLO.
If not, what would be the rationale for ARIV to pay a 30.9% premium (36 sen per share) to the market price for 27.75mil shares then?
There is an old saying: "There’s no smoke without fire." So, are there any structural changes in PARLO’s fundamentals? Is share price backed by fundamentals or just another story?
The founding of V Care Industries (Malaysia) Sdn Bhd (V Care), a 51% subsidiary of PARLO, could be the game changer for the Group. Based on my channel check, V Care is a distributor of various medical related products that have strong connections with the local retail convenient stores and hypermarkets such as 99 Speed Mart, KK Super mart, Mydin, and others.
So, what is so special about V Care? Prior to the establishment of V Care, the two directors (Chan Kok Seong and Chan Yee Kuan) have been in the business of distributing the Covid-19 Antigen Rapid Test Kit (RTK) via a partnership with the related party to the market. Out of the total 9 million RTK sold for the past 3 months in Malaysia, they contributed 5 million (55.5% of the market share).
According to my source, V Care will get their own establishment license to distribute the RTK very soon with the help from PARLO. And they are set to become of on the main players in the local market.
The demand for RTK is expected to pick up further due to the reopening of the economy and school, interstate travelling, opening of the international borders, etc. People will tend to test themselves after gathering, going to crowded spaces, or before going back to their hometown to make sure that they are free from the virus.
Based on their internal projection, V Care is expected to sell 3-5mil RTK per month. Let’s assume that V Care makes RM1 net profit from each RTK, the expected contribution from V Care to Parlo’s net profit will range from RM4.59mil to RM7.65mil per quarter (based on 51% shareholding).
At 27sen, PARLO is only trading at a forward PE of 3.85-6.42 times only! (RM0.27 / (RM0.042 | RM0.07)
Conclusion PARLO’s tourism and the migrant worker businesses are expected to contribute positively to the top and bottom line of the Group once the international borders are open in the near future. In addition, being one of the top travel management companies in Malaysia prior to the outbreak of Covid-19, the Group is expected to benefit from the RM1.3bil allocation in Budget 2022 that will be used to support the post-pandemic recovery of the sector.
All in all, from the changing of major shareholder to the new venture in the medical related businesses, it seems that the new management is determined to turnaround the ailing company. PARLO is trading at an extremely cheap valuation now if the new business venture turns out to be a successful one.
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....
hensemboi95
18 posts
Posted by hensemboi95 > 2021-06-15 10:15 | Report Abuse
slow slow going up