LCL / 7177 - 2009 Q4

LCL CORPORATION BERHAD

Listing Date: 08.01.2004
IPO Price: 1.500
Market: MAIN
Sector: TRADING/SERVICES
Par Value: 1.00
Major Industry: Construction
Sub Industry: Engineering & Contracting Services

LCL Corporation Berhad is an investment holding company engaged in the provision of management services to the subsidiaries. It operates in five segments: interior fit-out services, which provides interior fit-out works and services, including project management, design and consultancy, procurement, construction and installation; manufacturing of furniture, which is engaged in the manufacture of customised furniture and fixtures, generic furnitures; supply and installation of materials and fittings, which is engaged in the supply and installation of ceiling materials, metal fittings and fixtures and stone materials; trading of furniture and building materials, including interior fit-out materials, and others, which comprises investment holding and/or property development activities of the Company and certain subsidiaries.

My decision: NOT BUY
Reason: PN17, big loss

My opinion based on 2009 Q4 report (number in '000):
- Loss increasing too much to 334715 compare to previous quarter 25390, mainly attributed to the bad debts written off for old accounts having reached commercial settlement with the clients, one-off loss on disposal of properties and continuous down-sizing expenses incurred for Dubai operation