PRTASCO (5070) - Protasco Bhd's ED Chong salary up400% to RM4m/FY16 vs RM1m/FY13, cash plunged RM280m to RM6m. BUY?




11 September 2017 - Road maintenance and construction company Protasco Bhd had seen continuous drop in revenue, profit and especially cash flows, from year 2014 - 2017 Quarter 2. The Cash and Cash Equivalent of the group had plunged to alarming RM6 million as of Q2'FY17, a far cry from RM280 million in year 2013 (when the company Group Managing Director Chong Ket Pen took control of Protasco Bhd from former substantial shareholders). However, the same period, MD Chong Ket Pen had seen his personal salary and pay package ballooned from RM1million per year to whopping RM4 million per year, exclude his indirect related parties, count his sons, his share option schemes, and the bizarre bank-borrowed-dividend paid mostly to himself, plus dubious transactions between Protasco Bhd and third party contractors.
Based on publicly available information on Bursa Malaysia past announcements, Chong Ket Pen upon suddenly took control of Protasco Bhd, had taken not less than RM40 million to himself (note1), out of RM280 million Cash & Cash Equivalent since year 2013. That does not include questionable RM80 million "other expenses" per year as highlighted by Malaysia Focus, indirectly slip through the audited accounts under Group MD Chong Ket Pen's personal supervision.
To cover up the Protasco Bhd board of directors mouth to act in concert conceal such devastating facts from public knowledge, latest FT2016 annual report shown Protasco Bhd board of directors and key management, count Chong Ket Pen, Chong Ther Nen & Chong Ther Vern (both Chong's sons) taking majority of the fees, the gang racked up Protasco Bhd over RM10 million a year.
Comparing to Protasco Bhd year 2002 Revenue vs Profit of RM480 million vs RM40 million; vs year 2017 Revenue vs Profit of RM1.08 billion vs RM44 million, Protasco Bhd under Chong Ket Pen "sole control" had not performed better, except busy paying money from Protasco Bhd for himself & cronies, as evidence from public records as per Bursa announcements.
Public investors had seen Protasco Bhd share price drop from as high as RM2.20 to as low as RM0.95 in Q1'FY17. of cause, arguably if nobody is sophisticated enough to see through the smoke screen, Chong Ket Pen "has a lot of money" he has taken from Protasco to keep buying Protasco Bhd shares.
As of 11 September 2017 latest Bursa Malaysia announcement, Chong Ket Pen bought another 100,000 Protasco Bhd Shares, total holding 108,727,039 shares or 25.63% enlarged capital.
With not many sophisticated investors in Malaysia to read between the lines, nor enough experts in the authorities to see through smoke screens and bogus drama played out by public listed company raiders, the apparent public information available on Bursa Malaysia was neither carefully studied. Paid-publicities such as The Edge and other commercial newspapers, as well as research reports based on hear-say, become common place to act as tools of slandering, promotion and speculation.
Market had anticipated such abuses which explains the difference between "owner" and "employee'. As the co-founder cum employee for Protasco Bhd former substantial shareholder, when MD Chong Ket Pen suddenly pulled the show and took control of Protasco Bhd, the released beast out of owners (shareholders) governance turn greedy and taken every shareholder for a ride by enriching himself. Compared to companies ran by actual owners, such as Gadang Holdings Bhd, which made FY'2016 RM542 million Revenue and RM100 million Profits, the owner cum MD only took RM1 million per year package. The entire board and management only draw RM2 million in total yearly package. The "owners" vs "employees" characteristic shall be one of the key indicator for smart investors. Do the math, the numbers speak for investors pertaining to "where the money goes".
Until the authorities took their PhD from Harvard Business School, public shareholders can only watch the looting and drama going on taking away their cheese. Invest wisely and pray for the best if the system cannot provide trust and justice to your investments. However, a piece of good news - Chong Ket Pen has a lot of money, he will keep buying shares (from money taken from you), so you also benefit a little bit when share price sustained. Good luck!

Business Hedge News


References from Bursa Malaysia announcements, including Annual Reports, quarterly reports & AGM resolutions.
Note1:
Year | Chong Ket Pen personal salary | Dividend received (FY12-FY16 total over RM40 million)
------------------------------------------------------------------------------------------------
2016 RM4.2 million (chong age 63),Plus div rm6m
2015 RM2.8 million div rm10.4m
2014 RM2.2 million (after Chong took full control of Protasco) div rm4m
2013 RM1.1 million div rm8m
2012 RM1 million
2011 RM1 million
2010 RM1 million
2009 RM850k
2008 RM850k
2007 RM850k
2006 RM800k
2005 RM800k
2004 RM800k
2003 RM350k
2002 NIL (chong age 49) rev/profit 480m/40m


Annual report source of reference on "directors fees & remuneration"
----------------------------------------------
2016
http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=180087&name=EA_DS_ATTACHMENTS
2015
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5079061
2014
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4740505
2013
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4378557
2012
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4371061
2011
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4365537
2010
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4348117
2003
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4270885


Chong Ket Pen buys shares record as of 11 September 2017 Bursa announcement:
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5539961

Changes in Director's Interest (Section 219 of CA 2016)

PROTASCO BERHAD

Information Compiled By KLSE

Particulars of Director

Name DATO' SRI CHONG KET PEN
Descriptions(Class) Ordinary shares

Details of changes

No
Date of change
No of securities
Type of transaction
Nature of Interest
1
06/09/2017
100,000
Acquired
Direct Interest
Name of registered holder Dato' Sri Chong Ket Pen
Description of "Others" Type of Transaction  
Consideration (if any) 1.02
2
07/09/2017
100,000
Acquired
Direct Interest
Name of registered holder Dato' Sri Chong Ket Pen
Description of "Others" Type of Transaction  
Consideration (if any) 1.02

Circumstances by reason of which change has occurred
Acquisition
Nature of interest
Direct Interest

Total no of securities after change

Direct (units) 65,072,477
Direct (%) 15.340
Indirect/deemed interest (units) 43,654,562
Indirect/deemed interest (%) 10.290
Date of notice 11/09/2017
Date notice received by Listed Issuer 11/09/2017


Remarks :
1. The dealing of 200,000 shares represents 0.047% of the issued shares of the Company. 2. This announcement also serves as an announcement on notification under chapter 14 of the Listing Requirements (Dealing Outside Closed Period).


Announcement Info

Company Name PROTASCO BERHAD
Stock Name  PRTASCO
Date Announced 11 Sep 2017
Category Changes in Director's Interest Pursuant to Section 219 of CA 2016
Reference Number CS4-11092017-00002




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