Crest Builder – can you wait for the turn around?

Bursa Crest Builder had a terrible decade with declining top line, bottom line and returns. From 2012 to 2018, the Group achieved an average ROE of 8%.

From 2020 to 2023, the average ROE had declined to negative 11%.

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This is obviously a company facing a turn around. The good signs are that its construction arm has a RM 2.2 billion order book as of 2022 and its property development arm has RM 2.2 billion gross development value of projects. And it is fianancial ok.

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Its current losses are due to legacy projects and I think that it may take another 2 to 3 years to completely clean them. So while it is currently trading at less than half its book value, you will have to wait for the market to re-rate it.

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For more insights refer to Is Crest Builder a value trap?

https://www.i4value.asia/2024/05/is-crest-build...