Monday, June 10, 2013

PRKCORP- an interesting property & infrastructure stock

PRKCORP is a profitable medium-size developer based in Perak. It is involved in the development of a township called Bandar Meru Raya (here). In addition, PRKCORP is involved in the development of an industrial park measuring 1000 acres known as Lumut Port Industrial Park as well as having stake in the Lumut Maritime Terminal & Lekir Bulk Terminal. For more on the infrastructure development, go here.

For FYE31/12/2012, it reported a net profit of RM38 million on a revenue of RM155 million. This is an improvement from a net profit of RM30 million on a revenue of RM129 million recorded in FYE31/12/2011. For 1Q2013, it chalked up a net profit of RM6.8 million on a revenue of RM32 million. Based on its EPS of 6.8 sen for 1Q2013, PRKCORP's full-year EPS for FY2013 is estimated to be about 27.2 sen. At the current price of RM2.58, PRKCORP is trading at a PE of 9.5 times.

From the chart below, we can see that PRKCORP has broken above the line connecting the peaks for the past 10 years. With this breakout, the share price may rally to a high of RM4.00-5.00.

Based on technical consideration, PRKCORP could be a good medium-term investment or even a good trading BUY.

Chart: PRKCORP's monthly chart as at May 7, 2013 (Source: Tradesignum)

In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, PRKCORP.


baby lam said...

Dear Alex,
What do you think of Nadayu Properties?
It is very very thinly traded, it nonetheless owns about 259 acres of freehold land at Seberang Prai Selatan, Penang. It holds 30% in Tambun Indah Properties S/B and 40% inPalmington S/B. It adopted the completion method of recognizing profit from development projects. Kindly comment it?
Thank and regards,

Alex Lu said...

Hi baby lam

Nadayu Properties has never recovered after its failed bid to acquire a piece of land located at Jalan Sultan Ismail from UDA. That happened in June-July 2011. See the link below.

It is range-bound at RM0.80 & RM0.95 for about a year now. I would say it is the stock is a buy at RM0.80 if you have a long investment time horizon.