PRG signs deal for RM5bil affordable housing projects
It will work with SPNB unit to explore collaboration opportunities
PETALING JAYA: Property and manufacturing group PRG Holdings Bhd has entered into an agreement to explore collaboration opportunities with Syarikat Perumahan Negara Bhd (SPNB) to take on nationwide affordable housing projects worth about RM5bil.
In a filing with Bursa Malaysia yesterday, PRG said it signed an MoU with SPNB unit SPNB Aspirasi Sdn Bhd, and a project management firm Mimbar Nusantara Holdings Sdn Bhd for a potential joint venture (JV) in the project.
SPNB is a wholly-owned by Ministry of Finance Inc, which is under the Ministry of Finance.
PRG group managing director Datuk Lua Choon Hann said the proposed JV marked a significant milestone for the company and was in line with its strategy to collaborate in property development projects.
“We are pleased to have secured the confidence and support of SPNB in the delivery of such large-scale housing development projects.
“Considering the strong track record of our construction team, we are confident that we will be equally effective in our delivery of the projects,” he said in a statement yesterday.
SPNB was established in August 1997, with the objective to provide quality and affordable homes for families in Malaysia.
SPNB’s affordable home programmes include the Rumah Mampu Milik and the Program Mesra Rakyat.
PRG, formerly known as Furniweb Industrial Bhd, has announced a potential listing of its manufacturing and manufacturing-related business in Hong Kong.
The company submitted its listing applica- tion to the HK Stock Exchange last month.
Yesterday, shares in PRG closed 3.8% higher to RM1.08, a 44% increase on a year-to-date basis.
Rakuten Trade Research has initiated coverage on PRG with a “buy” call and a target price of RM1.40.
It said the target price was based on price-earnings ratio of 14 times FY18 earnings estimate driven by PRG’s property venture and proposed listing of its manufacturing arm in Hong Kong.
“The transformation journey of PRG started with the entry of Lua in November 2013. In 2015, the company saw its first foray in the property development and construction sector,” it said in a report yesterday.
While the manufacturing division would continue to be the main driver of the company, Rakuten said PRG’s property division would enhance its earnings growth in the next few years.