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The performance of Bursa Malaysia Plenitude over the past decade was nothing to shout about with an average ROE of 4%. But this was because not all its cylinders were firing. Plenitude had 2 main businesses – property development and hospitality.
The hospitality business used up about half of its capital. For most of the time over the past decade the hospitality business delivered losses. The profits for the group were contributed by property development.
But over the past 8 years, the group had been refurbishing and improving the operating efficiency of the hospitality business. Then in 2023, this business began to deliver profits. I would expect growing contribution from the hospitality business.
This was a successful property developer that got into profit problems when it diversified into hospitality. From 2014 to 2016, it had an average ROE of 8%. Over the past 3 years, its ROE averaged 1%. The mean ROE of the large Bursa property companies as per https://www.i4value.asia/2021/06/will-malaysian-property-industry-turn.html#more averaged 2% over the past 3 years. Will Plenitude be able to return to its previous good performance?
