Let's look at its problems.
1) Weakening Ringgit
2) Poor consumers sentiments at even its home turf Malaysia
3) Declining profits (excluding one-off disposal gains)
4) Coporate governance 1 - making a young daughter director with executive powers
5) Coporate governance 2 - 2 independent directors have resigned or quit
6) Coporate governance 3 - Complex owner structure of parents company, just look it's sister company PRG propose transfer/ sale of stake from left hand to right hand. It got voted down, which I cannot understand.
7) Poor execution records. Hanoi expansion is a disaster. PRG, it's sister company, helmed by the same chairman, also incur high ligitation costs for Beijing Metro
8) Indonesia profits unpredictable, lastest 2Q show a small loss.
9) FCF is QoQ is worsening
10) Payables is ballooning.
1) No debts
2) Still profitable at every quarters minus the one-off closure cost of Hanoi mall
3) Giving good dividends since IPO, and a 2 cents dividends (13 mio) would mean a yield of above 10 percent. Give a 1 cent dividend is not too bad. I need another quarter to see if FCF improve, it's short record of 6 years data show it's a FCF generating machine.
4) From PE perspective, it is not demanding, if we believe it can do 2 cents EPS in the longer term.
5) From NAV perspective, I am not interested since it is asset light and inventories, receivables etc might be marked down when "problems" happen.
When I last post about PRA, I say I will
Look at it only when it is near 20 cents, so here am I, what do you think?
( not vested )