We have a two-pronged strategy, which is to grow our existing businesses and to identify new platforms for growth, whilst keeping costs under control.
Going forward, we intend to:
- be more focused in the businesses we invest in; in other words shifting from deep diversification towards greater specialisation; and
- adopt a more proactive approach towards the operations and performance of our subsidiary and associate companies and be their valuable resource and partner.
Yes, our primary goal is to deliver shareholder returns by developing our existing businesses and identifying new investment opportunities.
Our focus is on high-growth and non-capital-intensive sectors to deliver shareholder returns. However, we do not discount investing in sectors that we currently operate in, such as polymer.
Our primary interests will be in the Southeast Asia region where we see opportunities for growth and value. This is determined by our resources, strengths and capabilities.
Yes, the existing businesses are profitable and sustainable, with potential for further growth. We are investing in strengthening our bench strength to take our businesses to the next level.
Our last acquisition was in 2014 with the K.A. Group.
The primary focus in the past three years has been on integrating our businesses and keeping a look out for suitable investments. We have continually assessed M&A targets during this time but these have not materialised for various reasons, which include vendors ultimately pursuing / accepting higher bids.
The management changes are part of an ongoing effort to reshape the strategy and direction of the Company. The outcome of these initiatives is an organisation that is leaner and more focused on value creation. This is reflected by the third consecutive year of growth in Profit After Tax.
Intraco does not have a dividend policy.
Our priority is to deliver sustainable profits.
Dividends, if declared, will depend on the performance of the Company and the need to balance that against cash required for potential acquisitions, among others.
Share prices are a function of many factors, some of which are beyond our control.
That said, we believe there is room for improvement on our part in providing greater clarity regarding the Company’s long-term strategy and direction, and addressing concerns around the sustainability of the Company’s growth and earnings. Efforts are being undertaken to:
- better articulate our strategy both in terms of clarity and consistency; and
- aggressively drive improvements in growth and profitability in our existing businesses on a sustainable basis
- identify new platforms for growth
We believe these efforts will provide investors with greater visibility of our earnings and earn their confidence in management execution ability, which will be reflected by the shares’ fair value over time.
Our immediate priorities are to:
- Drive improvements across all aspects of our existing businesses with a view on improving profitability
- Identify new platforms for growth in businesses that are profitable and scalable within the region
- Invest in leadership and talent.
At present, Intraco has sufficient capital to pursue new investments, which it is targeting.