NRA Research Report – 4Q16 Results Update

Excerpt from report:

Current Price S$0.149
Fair Value S$0.300
Up/ (downside) 101.3%

Turnaround Remains on Track – Margin improvements led to positive 4Q16 results.

Revenue was constant quarter-on-quarter at RM35.6m, but net profit from continuing operations swung from a net loss of RM0.4m in 3Q16 to a net profit of RM0.5m in 4Q16. The gains were driven by improved gross margin which rose to 46.4% in 4Q16 or 26.8% in FY16 versus 3.15% in FY15. We reckon that the high gross margin was due to the finalization of costs for some of the completed projects and greater mix of revenue from property development.

We continue to like Regal for its growth potential… Heading into 2017, we can expect Regal Corporate Park Phase 1, Airtrollis Phase 1 and 72 Residences Block 2 to be completed. The positive news is that property prices have continued to climb in Sarawak… the broader growth of Sarawak will provide Regal with opportunities to expand beyond Kuching and into other parts of Sarawak such as Bintulu.

For the full report, please visit our Research Reports page, or click the following icon to download.

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