Koon Yew Yin's Blog

What can KSL can do to benefit shareholder? - Koon Yew Yin

Koon Yew Yin
Publish date: Fri, 01 Mar 2024, 11:20 AM
Koon Yew Yin
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An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.

All materials published here are prepared by Mr. Koon Yew Yin

I am 91 years old. I am a co-founder of Mudajaya, Gamuda, IJM Corporation and many other listed and not listed companies in Malaysia. My sole intention for writing this advice is to help KSL improve its management to benefit all its shareholder.

After the stock closed yesterday, KSL announced its 4th quarter EPS which is 40.76 sen and its net tangible asset (NTA) backing of Rm 3.65. Its profit increased by 230% more than last year. As a result all shareholders expected the share to shoot through the roof.

Unfortunately, it remained unchanged at Rm1.53 per share. In fact, it dropped 4 sen on 28th Feb 2024, 2 days ago.

KSL is the cheapest in terms of PE ratio among all the top leading property developers listed on Bursa Malaysia.

KSL buys land from S P Setia for RM229mil as reported by The Star.

Friday, 24 Nov 2023. PETALING JAYA: KSL Holdings Bhd is acquiring freehold land measuring 72,820 sq m in Shah Alam, Selangor, from S P Setia Bhd for RM228.8mil. In a filing with Bursa Malaysia, KSL said the acquisition will enlarge the group’s land bank and enhance its future revenue and earnings.

KSL has a market capitalization of Rm 1,587 million and the total number of issued shares is 1,038 shares. Its NTA is Rm 3.65 per share and the last traded share price is Rm 1.53 per share.

In 2015 KSL gave out 2 sen dividend. Since then the company has not given out any dividend.

How can shareholders benefit if the company did not give out dividend and its share price remained depressed?

What can KSL do to benefit shareholders?

1 Since the company is so cash rich to buy land from S P Setia for Rm 228.8 million, the company must give out more dividend.

2 Since its NTA is Rm 3.65 per share and its share price is Rm 1.53, the best business KSL can do is to buy back its own shares. It can make more than 100% profit instantly without any risk. This is the safest and fastest way to make profit.

3 Obviously, some of the company directors are not efficient. They should be replaced.

I hope all the shareholders will read this article so that they can attend the coming annual general meeting to vote out those directors who are seeking re-appointment.

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Discussions
1 person likes this. Showing 8 of 8 comments

Sslee

The details of the directors’ remuneration for the financial year ended 31 December 2022 are set out below:
Group
2022 2021
RM RM
Directors’ remuneration:
- fee 90,000 90,000
- salary and other emoluments 39,087,000 26,206,100
- contribution to state plans 6,479,100 4,501,972
- other personnel costs 8,485 7,912
45,664,585 30,805,984

The three brothers Chairman, Executive Directors pay themselve very well.
But no dividend for minority shareholders.

1 month ago

Najib Zamry

don't waste time to such company. Park your money elsewhere

1 month ago

ming

Pay dividend to shareholder > shareholder get dividend buy ksl house > money back to KSL.

Win win !

1 month ago

Goldberg

Johor is a rising star in the data center landscape, and CRESCENDO is well-positioned to capitalise on this growth. Coupled with the company's undervalued landholdings, partial recurring incomes, and decent dividend history.

These factors make CRESCENDO an attractive stock for investors seeking exposure to growing data center industry in Johor and RTS Link, the potential game-changer for property market in Johor Bahru.

Net assets per share of Rm 9.0 upon revaluation.

As majority of the lands have not been revalued for years, and if we assume a net gain of RM600m from the remaining 202 acres of industrial land in Nusa Cemerlang Industrial Park and a RM1b revaluation surplus for its remaining landbank and properties, this will bump up its net asset per share to RM9, versus its current share price of RM2.58 per share.

1 month ago

KingKKK

Johor property theme is good and there are hidden gems for property developer in other state too.
AVALAND is a turnaround play, details as below.

AVALAND: Transforming From Strength to Strength in the Malaysian Property Market - (KingKKK)

https://klse.i3investor.com/web/blog/detail/bestStocks/2024-03-01-story-h-187561001-AVALAND_Transforming_From_Strength_to_Strength_in_the_Malaysian_Propert

1 month ago

JrWarren

5 out of 9 directors surname Koo.
After disqualified a director, Right to appoint director is with the current management, I foresee another Koo being appointed.
A coup to cast out Koo family in management is impossible because they have substantial shareholding.
Johor is the main development area now, to maximize profit, KSL will continue to use internal cash to fund the project. Until exhaust of internal fund, then only go for bank borrowing, no chance for dividend payout at all.

As suggested that cast out the directors is step one. Then need to advertise in The Edge & other media platform to accumulate the minority shareholding % to start an EGM and revise the director remuneration structure, from PURE CASH SALARY & ALLOWANCE to SHARE option as salary.

The Koo family has been taking advantage on KSL as in-house ATM and cashed into their own pocket. When the traditional CASH SALARY is abandon, and STOCK option is their salary, they will do anything to push up the share price / paying dividend as their salary is now correlated to the stock ownership.

Will this method success ? No, because Asian always mind their own business, unlike western investors which know how to protect their own right (How often u see Malaysian go into strike 【罢工】). At the end, Malaysian will opt for easier solution, Let go and buy other shares.

After all, I dont see any cash will leak to the 3rd party investor other than Koo family in the following situation:
1. NTA per share RM3.65, super light debt, impossible to bankrupt, so dont expect any asset sell down and get the cash.
2. Dividend : as mention above, jangan mimpi.
3. Capital Gain : KSL is like bitcoin now, you expect other to pay higher price to buy ur share, so u can get capital gain. However, w/o the motivation of dividend, will other pay higher price to get KSL share ? Do they expect to buy KSL share at RM1.50, wait the company bankrupt and get the RM3.65 from asset disposal return ?

1 month ago

mamakspecial

stop telling people to vote out director ..you tried it on jaks ..and how did that end up?? no one likes outside people to come in and disturb the operation....ksl is property stock..even if makes money ..property segment in malaysia is not doing good..prices already too high for even m40 to buy..the sales will slow down..basic material keep rising and wont drop..so how do you expect to have so many new working generations to have money to buy more property..you wont see big sharks buying property stocks especially foreign big sharks which is the catalyst to moving share prices

1 month ago

edcheong

Mr Koon, your predictions have come true, and many owe you appreciation. Thank you for your kind sharing. Hope you will continue to post more often and wish you many blessings.

2 weeks ago

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