GRP Limited

GRP Limited: Group branches out into property investment and development as its core business, in view of the growth in the property market within the ASEAN region that is driven by rising income levels and rapid urbanisation. The new business will not have any restrictions pertaining to a specific geographical market or a specific type of property; however, the initial stages of the new segment will have a focus specifically in Myanmar, apart from the Asean region. The proposed new business will be subjected to shareholders' approval at the EGM, and will allow the group to undertake property development, investment and/ or trading in properties. Besides the contribution of an additional income stream, management believes that the proposed new business will help reduce the group's reliance on its existing business (manufacturing of rubber hoses, PVC piping and metrology equipment), which will remain competitive and challenging. Based on the last closing price of $0.285, GRP trades at an historical P/E of 9.5x and 1.4x P/B.