(Icon8888) PRG Holdings Bhd - Explosive Earnings Growth Ahead (Easily 200%)

Author: Icon8888   |   Publish date: Fri, 27 Mar 2015, 07:46 AM 

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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 ?)