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.