Bursa Malaysia Stock Watch

KSL (BUY) - A Transition Year

kltrader
Publish date: Thu, 01 Mar 2012, 06:19 PM
kltrader
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KSL (BUY)
A Transition Year
  • FY11 core net profitrose 48% yoy to RM87.9m, making up 94.5% of HLIB's full-year estimates. 
  • 4Q earnings wereparticularly weak, which we believe is related to work progress for KSL City. Earnings are currently undergoing a soft patch, and KSL needs their Klangproject to make a meaningful contribution this year.
  • We were alsosurprised that no dividends were declared in 4Q or for FY11 as a whole.
  • Rolling over ournumbers, we keep our earnings forecast and price target of RM2.16 unchanged(based on 30% discount to RNAV).  Maintain BUY.

 Source: HLIB Research 1 March 2012
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