Highlights

KL Kepong - Visit to Bandar Seri Coalfields

Date: 20/09/2018

Source  :  MIDF
Stock  :  KLK       Price Target  :  27.38      |      Price Call  :  BUY
        Last Price  :  21.62      |      Upside/Downside  :  +5.76 (26.64%)
 


INVESTMENT HIGHLIGHTS

  • Bandar Seri Coalfields has GDV of RM4.0b
  • North Haven Coalfields is the focus for FY18
  • Property division contribution should grow in the future
  • RM10.0b of GDV for other land in Sungai Buloh/Ijok
  • Maintain BUY with TP of RM27.38

Bandar Seri Coalfields has GDV of RM4.0b. We visited Kuala Lumpur Kepong (KLK) property development project in Bandar Seri Coalfields (BSC) and returned feeling positive on the Company’s property division long term prospect. BSC is a 1,001 acres freehold township development in Sungai Buloh, Selangor. It is located ~45km away from Kuala Lumpur City Centre. Launched in 2011, the township has total GDV of RM4.0b and expected completion period is 15 years.

North Haven Coalfields is the focus for FY18. KLK has launched he maiden phase of North Haven Coalfields, Hemingway Residences which comprises 158 units of superlink homes (lot size 24’ x 90’) and 94 units of semi-detached homes (lot size 40’ x 100’). We gather that the price of superlink homes start from RM770,000 while the semi-detached homes start from RM1.15m.

Property division contribution should grow in the future. In FY17, property division registered PBT of RM40.5m representing small contribution of 3% to the Group’s total PBT. Despite the small contribution currently, we expect it to grow in the future due to other strategic landbank in Sungai Buloh.

RM10.0b of GDV for other land in Sungai Buloh/Ijok area. Besides BSC, KLK owns 2187 acres of landbank in Sungai Buloh and 415 acres in Ijok. Our estimate shows that the total GDV for these two new townships could exceed RM10.0b. KLK plans to launch the first phase in both landbank in 4QCY2019.

Maintain BUY with TP of RM27.38. Our earnings estimates are unchanged as the information gathered has been included previously. Our TP is based on Forward PE of 26.8x (+1.0SD Valuation). Maintain BUY on KLK for its earnings resiliency and decent dividend yield.

Source: MIDF Research - 20 Sept 2018

Share this
Labels: KLK

Related Stocks

Chart Stock Name Last Change Volume 
KLK 21.62 +0.12 (0.56%) 650,200 

  Be the first to like this.
 


 

402  313  494  808 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 NETX 0.02-0.005 
 ARMADA 0.48+0.035 
 MTAG 0.54+0.03 
 HSI-C7F 0.325-0.01 
 SANICHI 0.045-0.005 
 HUAAN 0.16+0.015 
 KNM 0.46+0.005 
 PUC 0.0550.00 
 PRESBHD 0.50+0.015 
 HSI-H8B 0.19-0.015 

FEATURED POSTS

1. MQ Trader Workshop @ Kulai - Trading Strategy in Volatile Market MQ Trader Announcement!

TOP ARTICLES

1. OVERLOOKED GEM : BENEFICIARY OF BUDGET 2020 !!! Bursa Master
2. SELL CARIMIN & UZMA NOW & SWITCH TO NETX, OPCOM, REDTONE OR MUIPROP, Calvin Tan Research THE INVESTMENT APPROACH OF CALVIN TAN
3. EYE ON THIS STOCK BECAUSE THE PRICE RALLY COULD BE THIS WEEK (21-25 OCT)! smartinvestment2030
4. Bumi Armada: What Happened and Why? Weekly GreenTrade$ watchlist
5. Dayang’s Price Rise is not Reflected on Naim - Koon Yew Yin Koon Yew Yin's Blog
6. CALVIN'S SUNDAY SHARING FROM THE BIBLE: TOPIC - 2 POINTS: NEED FOR WATER & SEASONAL TIMING THE INVESTMENT APPROACH OF CALVIN TAN
7. THE NUMBER ONE CHAMPION UP-TRENDING STOCK OF BURSA FOR YEAR 2019, 2020, 2021 ALL MUST NOT MISS NOW!! THE INVESTMENT APPROACH OF CALVIN TAN
8. CAB the Big Yellow CAB ready to take you for a ride GrandMustahTradingJourney
Partners & Brokers