KUALA LUMPUR: PRG Holdings Bhd expects a turnaround in the financial year ending December 31, 2022 (FY22), fuelled by the recovery of the property sector and global push for environmental, social and governance (ESG) agenda.
PRG said it had seen encouraging progress in FY21, as reflected in its cumulative nine-month revenue and net profit or RM129.9 million and RM12.0 million respectively.
The achievement was achieved after registering consecutive losses in the past three financial years.
PRG's manufacturing segment Furniweb Holdings Ltd, which is listed on the GEM board of Hong Kong Stock Exchange, has shown promising returns since 2020 but was hindered by one-off impairment losses on goodwill and assets.
PRG has since reorganised and divested two loss-making companies and has benefited from the rising demand for various products resulting to cushion the impact of the Covid-19 pandemic.
The company manufactures its products from two plants located in Vietnam and three located in Malaysia, and exports these to over 30 countries globally.
Group executive vice chairman Datuk Lua Choon Hann said the company had seen a strong recovery in sales orders for its manufacturing products.
"This is a result of the pent-up demand from the pandemic, as customers are rushing to restock, and we have also benefited from some shifts in procurement away from China.
"Since 2020, we have been upgrading and replacing machinery to expand production capacity.
"We are exploring new products and new products to expand our range of offerings to the market," he said in a statement today.
Although the global outlook remains rather bleak as the pandemic resurgence continues in various countries, PRG will continue to capitalise on its strengths in existing and new businesses to deliver sustainable value to customers and stakeholders.
PRG had, on November 2 last year, signed a sale and purchase agreement to buy a 37.25 per cent stake in Energy Solution Global Ltd (ESGL) through its 54.2 per cent-owned Furniweb Holdings.
One of PRG's subsidiaries, Measurement & Verification Pte Ltd, an energy services company accredited by the National Environment Agency (NEA) of Singapore, has amassed an orderbook of about S$40 million.
This comprised job wins from data centre projects such as AirTrunk, ST Telemedia and contracts from big corporations in Singapore such as Changi Airport and SSMC.
"Today's world demands efficiency with resources and energy processes, and in the business paradigm, there is an even stronger case for translating efficiency into meeting profitability and ever-increasing compliance targets.
"We believe that there is a lot more room and opportunity for ESGL to grow regionally, and PRG will provide the platform for ESGL to grow in Malaysia, Vietnam, Hong Kong and Greater China. This new division will be our growth driver going forward," Lua said.
