Frequently Asked Questions

1. What is the strategy and direction of the Company?

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.

2. Is there alignment in terms of the strategy and direction of the Company?

Yes, our primary goal is to deliver shareholder returns by developing our existing businesses and identifying new investment opportunities.

3. What is the sector and geographical focus for Intraco?

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.

4. Are the growth and earnings of the Company sustainable?

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.

5. Why has there been no M&A activity in recent years?

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.

6. Why has there been significant management changes in recent years?

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 five consecutive years of profitability.

7. When will the Company pay dividends?

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.

8. Why is the share price trailing behind net asset value per share?

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.

9. What are the Company’s top three priorities in the next 3 years?

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.

10. Does the Company have enough capital to pursue new investments; if no, does the Company plan to raise new capital?

At present, Intraco has sufficient capital to pursue new investments, which it is targeting.