In the recent news, Second Chance Properties stated they have the intention to turn it apparel business into a Malay equivalent international H&M retailer.
Earnings have plunged from 88% to 5.7 million in the 3 months to Aug 31 while revenue fell from 16.1% to $17.9 million.
The final dividend has cut from 1.5 cents a share down from 1.7 cents last year.
Apparently, when they have declare to sell most of their properties, I am not in favor of it because if the business is making money from various segment, I do not see any needs to change it.
Moreover, even if they wish to establish their own brand & turn it like H&M, it will take time to materialize. And, there’s hardly any competitive moat for Malay apparel business.
Now, the whole fundamental of the business have change & my take is to sell the stock.