This article first appeared in The Edge Financial Daily, on November 23, 2015.

PRG Holdings Bhd (-ve)

PRG, formerly known as Furniweb Industrial Products, (Fundamental: 1.1/3, Valuation: 2/3) closed 9.9% higher at 78 sen last Friday, after announcing its 3Q2015 earnings results.   

For 9M2015, revenue grew 43.4% y-y to RM89.3 million, driven by higher contribution from property development segment. Net profit totalled RM2.8 million, compared to a net loss of RM250,000 a year ago, due mainly to the manufacturing segment and forex gains of RM2.5 million. 

PRG is principally involved in the manufacturing and marketing of industrial products, including furniture webbing, seat belt webbing, and rubber strips. The company diversified into property development last year.

On November 9, PRG proposed to diversify into the construction sector, in anticipation that its construction business — comprising a RM50.2 million project in Ipoh — may contribute at least 25% of its net profit. 

Last year, PRG derived 74.9% of its revenue from export, with Asia Pacific, Europe, and North America as its main markets.