NRA Research Report – 3Q16 results update

Excerpt from report:

Overweight
Current Price S$0.148
Fair Value S$0.315
Up/ (downside) 112.8%

Astute Strategy Results in Trail Blazing Revenue Growth – 3Q16 results show marked improvement.

Regal reported positive 3Q16 EBIT of RM0.8m versus RM0.9m in the six months of 1H16, despite a net loss of RM1.0m in 3Q16 due to RM0.4m from discontinued operations, RM0.5m of tax and RM0.6m of finance costs. Revenue almost doubled from RM18.7m in 2Q16 to RM37.2m in 3Q16. The high revenue growth and positive EBIT demonstrate the viability of Regal’s business and pave the way for higher profitability and hence shareholder returns in the future.

In 2H16, Regal has been aggressively entering into collaborations with partners from a wide range of industries, e.g. hospitality, tourism, industrial park and asset management… we realised that Regal is building its capabilities and branding via these partnerships, which will allow Regal to grow faster than other domestic centric competitors.

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