I am happy to take RM2 as well, but the fact suggested otherwise based on the following:
1) Despite RM400M+ cash in hand, KSL going to reinvest it (for land purchase / development) rather than privatization. 2) Privatization required huge fund from Khoo family and they cant afford the OPPORTUNITY COST. 3) What is the opportunity cost? KSL has massive land bank in Johor, so they likely benefit from SG-JB RTS in property development Malaysia Green Energy transition - AKA sell green electric to SG, more land required in Johor to build solar farm, Few big conventional projects just completed and start generate cashflow, these monies can be used for reinvest again.
I bet everything will be status quo, no privatization (despite privatization is viable and best option), no dividend ( as mentioned above cash ALWAYS reinvested). I hope KSL proof me wrong by declaring dividend in FY2023.
In 2Q23 quarter report, it has cash RM423m. Its has capital commitment (CC) RM245m. This CC mainly for balance of land acquisition payment like Pulai land RM109m, Pontian land RM102m, Kota Tinggi land RM78m etc.
All this land acquisition will strain KSL cashflow. Doubt KSL will declare big dividend this year. At best, small dividend!
S P Setia also announced it is selling a freehold plot in Setia City, Selangor, for RM228.8 million, cash.
It is selling the 17.99-acre plot to a subsidiary of KSL Holdings Bhd as part of its strategic plan to monetise some of its identified land banks, especially those not planned for immediate development. The sale is conditional upon KSL obtaining approval from the Economic Planning Unit for the transaction.
Every quarter KSL reap strong positive cash flow from properties development and properties investment portfolio, replenishing cash hoard use for land acquisition without need to get bank borrowing. Internal fund is more than sufficient to buy earning accretive land
Cash is King, no cash no talk, we Malaysian love cash... Without dividend, the share is like BITCOIN, always expecting the next Lulu offering higher price for capital gain. At the end, the boss at behind counting $$, investor cries without tear.
Privatization will not happen at current state or even in the future. If the management really want to do it, they would rather do it when the share price at 50sen 3 years ago or 70sen 2 years ago, not at current price of RM1.20
Kudos Uncle Koon new article. I've already been out tho, value trap share price action doesn't feel right as it tumbles post results. If it runs, chase then
Status quo, No privatization, No dividend, No buy back. Khoos' will continue to pay them self fat cheque, while rolling all the cash and reinvest. Khoos' dont give a damn.
Based on candlesticks, KSL is above SMA20,30,50,200… fundamentally good with solid cash flow and profit margin more than 10%, PE less than 5, one of the main developers in Johor Bahru, central economic development in Malaysia with special economic zone…
What are you waiting for? Buying KSL now is like striking 4D soon…
Hope the HK fung shut master prediction is correct property that located in the south corridor can fly... let's see... already in this value trap for years. Pai sieh
This one hit above 4.90 in 2014. I sold at 4.50 after it retraced from the high. Current price is after going one for one bonus issue, so it's 2.68..... ....still got potential to go up.....IF operator wants to push :)
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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....
JrWarren
167 posts
Posted by JrWarren > 2023-11-22 15:19 | Report Abuse
I am happy to take RM2 as well, but the fact suggested otherwise based on the following:
1) Despite RM400M+ cash in hand, KSL going to reinvest it (for land purchase / development) rather than privatization.
2) Privatization required huge fund from Khoo family and they cant afford the OPPORTUNITY COST.
3) What is the opportunity cost?
KSL has massive land bank in Johor, so they likely benefit from SG-JB RTS in property development
Malaysia Green Energy transition - AKA sell green electric to SG, more land required in Johor to build solar farm,
Few big conventional projects just completed and start generate cashflow, these monies can be used for reinvest again.
I bet everything will be status quo, no privatization (despite privatization is viable and best option), no dividend ( as mentioned above cash ALWAYS reinvested). I hope KSL proof me wrong by declaring dividend in FY2023.