Perduren (M) Bhd
Perduren (M) Bhd, formerly  known as Orlando Holdings and later Formis (Malaysia) is now a property investment company following the discontinuation of its former IT and garment businesses in 2006.

The company was taken over by tycoon Tan Sri David Law Tien Sen, who undertook a general offer for the remaining shares he did not own late last year at RM1.10 per share.

Its shares are currently trading at RM2.06, having risen 10.8% yesterday, but on very thin volume of 106,300 shares. As the tycoon currently has a 71.4% stake in the company, its shares are fairly illiquid.

Perduren’s key property assets are in Johor Bahru, comprise Plaza Sentosa, a commercial complex, Grand Sentosa Hotel and Holiday Plaza, a retail and commercial mall. In the Klang Valley, Perduren also owns Shamelin Business Centre in Taman Shamelin Perkasa, Cheras.

The company’s property investment portfolio provides stable income. It has also started moving into property development with the launch of Shamelin Star in Taman Shamelin Perkasa in 2013. The project, comprising of serviced apartments and retail lots, has a GDV of RM330 million and is expected to be completed by 2016.

Over the past five years, the company’s revenue has been steadily rising, except for the marginal dip in FY March 2011, to RM66.3 million in FY2014. For FY2014, net profit rose 190% to RM6.9 million. Net gearing is relatively high at 63.2% as at FY2014, and the company has not paid any dividend since 2004.

For 2Q2015, Perduren’s revenue jumped 190.0% to RM22.6 million while its net profit turned into black from the previous corresponding period. The stock appears fully valued, trading at a trailing 12-month P/E of 32.6 times and a price-to-book ratio of 1.2 times.

This article first appeared in The Edge Financial Daily, on December 3, 2014.