Stone Sentinel Capital on Protasco Berhad
Thesis
Stone Sentinel Capital continues to hold Protasco, which the manager believes offers substantial value at approximately 1.9 times trailing earnings. Business performance was in line with expectations, although seasonality affected the important road maintenance segment. The manager expects crucial government contracts to be renewed later in 2026, supporting the ongoing maintenance business. Protasco also owns non-core assets that could be liquidated, creating another possible source of value realization. The opportunity combines a very low earnings multiple with contract renewals and potential proceeds from asset disposals.
“The stock continues to offer significant value at 1.9x trailing PE and a portfolio of non-core assets that may be liquidated.”
Key risks
- Seasonality affects the key road maintenance segment and can lead to uneven results.
- Crucial government contracts are expected to be renewed later in 2026, so the thesis is exposed to the outcome and timing of those renewals.
- Non-core assets may not be liquidated, limiting or delaying the realization of their potential value.