Keck Seng's land is mostly located in Pasir Gudang area, UEMS's land is mostly located in Iskandar Puteri area, where most business activities take place.
Cresendo Corp Bhd recently sold some land in Pulai to Singapore owned company STT GDC Malaysia 2 Sdn Bhd for RM117 million or RM100/ft2. Keck Seng has around 25 million ft2 of development land there. How much do you think Keck Seng's land is worth?
#prudentinvestor Simple maths says the land bank in Johor alone is worth a whopping 2.5bil!!! That alone will give RM6.94 in value per share (no. of shares issued is circa. 360mil)!!! Plus net cash & liquid asset per share (including investment securities) of approximately RM4/share, KSENG is actually worth much more than RM10/share. Very undervalued indeed!!!
Keck Seng's development land in Johor is not limited to Pulai area only. It also has 7,500 acres of plantation/development land in Pasir Gudang area. Now assuming its development land in Pulai is worth RM50/ft2 and its landbank in Pasir Gudang area is worth RM9/ft2 or RM400,000 per acre. Total worth of its landbank is over RM4 billion.
Cresendo Corp Bhd is selling its land in Pulai again, this time 7 parcels of land to Yu Ao Sdn Bhd at RM125/ft2. Never expect land is soooo valuable now in Pulai area.
Including the dividends, Keck Seng has already risen by more than 40% from its lows in April. Not a bad achievement but still a long way to go to reach its intrinsic value.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
speakup
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Posted by speakup > 2023-09-01 10:34 | Report Abuse
all Johor counters up except Kseng. Aneh!