Thursday, November 28, 2013

KSL- an attractive property stock



Result Update

For QE30/9/2013, KSL's net profit increased by 3% q-o-q or 61% y-o-y to RM68 million while revenue increased by 1% q-o-q or 83% y-o-y to RM217 million.The group's property development projects in Johor Bahru & Klang are doing fairly well.


Table: KSL's last 8 quarterly results


Chart 1: KSL's last 36 quarterly results

Financial Position


As at 30/9/2013, KSL's financial position is deemed satisfactory, with current ratio at 2.1 times & gearing ratio at 0.16 time.

Valuation

KSL (closed at RM2.04 yesterday) is now trading at a PE of 3.6 times (based on last 4 quarters' EPS of 57 sen). At this PE multiple, KSL is deemed very attractive.

Technical Outlook

KSLis in an uptrend line, with support at RM1.68-1.70. Its immediate support level is the horizontal line at RM2.00.


Chart 2: KSL's weekly chart as at Nov 27, 2013 (Source: Quickcharts)

Conclusion

Based on good financial performance, attractive valuation & positive technical outlook, KSL is a good stock for long-term investment.

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, KSL.

7 comments:

Terry Tee said...

hong leong say TP RM2.04
(http://klse.i3investor.com/servlets/staticfile/230688.jsp)

Admin said...

good work. Can i exchange my blog link with yours? Thanks.
tzlcl.blogspot.com

luckystock2 said...

Hi Alex ,
Can you comment on Annjoo's financial performance and technical outlook ?
Tx!

Ikan Bilis said...

how you calculate gearing ratio at 0.16 times? Compare which value to which value?

Alex Lu said...

Hi luckystock2

Annjoo incurred losses in QE30/9/2013 due to depressed steel prices as a result of the Ramadan month & monsoon season in part of China. In addition, it recognized a forex loss of RM15 million.

On the whole, the company is still struggling to cope with the depressed steel prices, which may be due to dumping by Chinese producers.

Alex Lu said...

Hi Ikan Bilis,

I calculate my gearing as Total Borrowings to Total Equity.

Alex Lu said...

Hi Admin for tzlcl.blogspot.com,

Thank you for the suggestion. I will think about it.