PRG Holdings (former Furniweb Ind)

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not vested

PRG HOLDINGS BHD

A WILDCARD pick to watch out for would be PRG Holdings Bhd.

A cheaper entry could be its warrants, which at 27.5 sen is trading at a 22.22% premium to its mother share’s price of 84 sen. The warrant has a strike price of 75 sen and has a long way to go with its expiry on June 7, 2019.

New developments are taking place in PRG, the company formerly known as Furniweb Industrial Products Bhd since its executive director Datuk Seri Yeoh Soo Ann of Encorp Bhd fame stepped down from his post on Nov 30 and sold his entire 25.45 million shares or 17.47% stake in the company.

Sources have said his departure would lead to the emergence of a few new strategic shareholders. Meanwhile what is evident is that executive director Datuk Lua Choon Hann has been accumulating shares and is now the single largest shareholder of the company with an 11.05% stake or 15.99 million shares. With Yeoh’s resignation, Lua will be the new chief to steer the company moving forward.

For the third quarter to Sept 30, 2015, PRG’s net profit increased 11.43% to RM1.64mil on the back of a 32.33% increase in revenue to RM30.01mil.

For the nine-month period, net profit was up more than tenfold to RM2.79mil from RM250,000 previously. Revenue was up 43.38% to RM89.28mil.

While these earnings are an improvement, the bulk of it still come from its manufacturing and furniture webbing business, which are a beneficiary of the strengthening dollar.

The stock has a market capitalisation of about RM117mil and is trading at a historical PE ratio fo 23 times.

Source: The Star