PRG (7168) - More Income by Diversified

PRG Holdings Berhad’s manufacturing division (formerly known as Furniweb Industrial Products Berhad) started operations in 1983 in Malaysia as a partnership producing furniture webbing. The company has since diversified into niche products for the textile and apparel, furniture, automotive, food packaging and medical industries.
Today, the GROUP is an industry leader, internationally recognized for a comprehensive range of products that are available in more than 30 countries.
The company also diversified into property development last year after Dato' Seri Yeoh Soo Ann emerged as the largest shareholder  after buying 25.2million shares in the company.

In the past few years, the company also recorded a strong earning from the manufacturing division which is around 4 to 5sen EPS.

Last year Q1 and Q2, the company recorded a net loss of 0.5sen and 0.85sen for the respective quarter, and the company return to profit again in Q3 and Q4. The revenue of the company also increased in the past 4 quarter.

Picasso Residence- The high-end condo project, which is expected to be launched within the next one month, will have a gross development value of more than RM600mil once it is built on some 3.93 acres will projected net profit of RM60mil for PRG is expected from it should the company sell 100% of the project, Yeoh carefully predicts on The Star business news 18 April 2015.

With property as its new income stream, PRG is not abandoning its original business of manufacturing, which is divided into webbing, yarn and furniture components as well as rubber strips and fabric. More than 70% of the products are for the export markets!

With the new property development and the company original manufacturing business (70% export), i believe the company will recorded a much more better earning in the coming quarter report.

From the daily chart, the price has break up the downtrend line and stay sideway now. Total volume traded untill 12.30pm today is 23.4k lot and current price trading at 70sen. Highest volume in the past 6 months.

If the price close above 72sen, i believe more upside to go in short term as buying volume has building up today after the price has stay below 72sen since last year December.



Target Price: Rm0.90


Happy Trading!

Regards,
Nick Loke