Bull markets are born on pessimism, grow on scepticism, mature on optimism and die on euphoria.

Sunday, April 21, 2013

~ Enquiry on Prestariang Berhad (PRESBHD) ~

I sent an email to Prestariang Berhad's (PRESBHD) investor relation team regarding some of my dummy questions and glad that they replied me in few days time though I just yet another little minor investor. 

Below are my questions to them and those sentences in red font are their replies. 

It's noted that Prestariang is in the progress to setup a permanent university which provides a steady recurring income to the group in future apart from its 2 core businesses. Some news reported that the setup of the permanent university need around RM200millions capital. I'm here to send an email to enquire what is the step and funding method Prestariang Berhad takes to allocate this RM200millions capital. WIll it through borrowings or right issue to raise capital? Will the fundings affected the dividend policy? 
The new campus is in  the planning stage whereby RM200 million is an early estimation of the development cost (as per our release dated 31 Jan 2013). It may be lower depening on the concept and design of the campus. of which the sources of fund is yet to be decided. At present, there are a few financial alternatives for the new campus such as lease to own, direct lease or own development through fund raising etc. The management team is looking for the best and cheapeast alternative as Prestariang’s business model is focusing on Asset Light + Low Gearing concept. As such, the management will ensure decision make for the funding and alternative will NOT IMPACT Prestariang’s dividend policy in the future. We will announce the business model of the campus when the time comes.

Apart from that, another question I would like to ask is that will it be any effect of the election or government change to Prestariang business nature? As majority of Prestariang Berhad's contracts are from the government bodies. (Sounds like a dummy question as they definitely wont say yes anyway :) .. )
Since Prestariang started 10 years ago, we managed to win and continued to secure projects from the public sectors despite the change of various ministries in particular MOE and MOHE.  We are confident that our products and businesses are resistance to political change as re-skilling and up-skilling of manpower to meet the demand of the market is a NEED regardless of which ruling party. As such, we will survive under any government and whoever minister being appointed.

On the other hand, it's noted that Minister of Finance and Kumpulan Modal Perdana had disposed quite a number of shares through open market for the last 2 months. It's worrying for the minor shareholders like me that the substantial shareholders are disposing their shares in Prestariang Berhad. 
Kumpulan Modal Perdana is the fund management arm for the Ministry of Finance Malaysia. Similar to any fund manager, their main objective is to invest in a portfolio of business in return for either capital or dividend gains. As a publicly traded company, we will not be able to stop investors from their buying and selling activities. We would however continue to educate more investors about our company through IR and PR activities. Hopefully, we will have more investors like your goodself that believes in the work we do and will stay with us on long term.

In case you all have any questions to ask Prestariang Berhad, just drop an email to inquiry@prestariang.com.my. Their efficiency are quite good. 

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