Keck Seng - Unlocking deep value

Date: 
2012-12-22
Firm: 
HWANGDBS
Stock: 
KSENG
Price Target: 
6.00
Price Call: 
BUY
Last Price: 
5.73
Upside/Downside: 
+0.27 (4.71%)

Keck Seng (M);
Fair value: RM6.00; KS MK

Major re-rating catalyst from potential bumper dividend by FY13. Potential M&A target with 83% of market cap in liquid asset (RM1.90/share net cash, RM1.32/share investment). Deep value from Johor land bank with significant upside potential. Fair value of RM6.00, based on 30% discount to RM8.50 SOPderived valuation.

Source: HwangDBS Research - 21 Dec 2012

Discussions
Be the first to like this. Showing 12 of 12 comments

New Insight Sabah

If this stock has such good potential, then why are people selling there shares in it? Doesn't make sense, does it?

2012-12-27 09:47

Elisha Tkx

NOT ALL PEOPLE HAVE HOLDING POWER AS THE SHARES APPRECIATE SLOWLY

2012-12-27 11:28

Elisha Tkx

BUY QUICKLY NOW, GOOD DIVIDEND

2012-12-27 11:28

feigo

I hope it can go down then I will buy more.

2012-12-27 11:34

New Insight Sabah

But the dividend might not come until very much later in 2013, at the latest on or just before 31 December 2013. Having said this, correct me if I'm wrong, an average 18% nett gain over current price for a year's wait is still very attractive. And there's a chance of the share price going up to 6.00, according to analysts, so why aren't people holding on to the stock until they get their dividend and then perhaps sell it at a very much higher price, say 5.04 after the price has appreciated and gone ex-dividend.

2012-12-27 11:44

Elisha Tkx

WHAT IS SECTION 108 TAX CREDIT BALANCE , CAN ANYONE EXPLAIN, PLS ?

2012-12-30 14:05

hw0706

some fund want to clear the stock before year end.

2012-12-30 15:01

Lim AS

can't u understand that this is market , so buying n selling will be the norm of the day.If u have confidence , just hold on to it , if not let go and take the cash instead. Some ppl seeing bad times as opportunities but others think otherwise.In stock market when there r risks , there r opportunities as well . It is a well balanced game.

2013-03-19 20:23

arv18

Like Bandar Utama SHC Effingham Dev.


Eff-ing Jam. Eff-ing name. Eff-ing price.


I don't want to get Effed-'d into buying a stock on some rumour of dividend.


They have never been generous with D-I-V.


WHY now?


WHAT is this Section 108 Tax Credit Balance. Any Case Study in the past?


Thanks.

2013-03-20 01:35

arv18

Why would majority owners want to spike shares now?


Why not quietly accumulate. Then screw shareholders like MBF & Tradewinds?


Why not use cash for something else like buybacks or acquisition of more land?


I'm just saying. Don't shoot the messenger - or questioner in this case.

2013-03-20 01:44

Ben Gan

Kseng is cash-rich and asset-rich as well. There is no doubt about this. Management, I would say is, very poor and stingy. The company has over RM700 million of cash but gives you chicken-feed dividend. It does not know how to make good use of the cash it has; it just sit on it. Small shareholders are much concern about this. If it has no idea how to generate cash from the cash it owns, it should at least return some of them to the shareholders. If a revaluation is made on the lands and investments it has, the stock is worth easily more than RM18 per share!

2013-05-11 09:16

arv18

Ben. this is why quality of management is so important. If you just have brother sister uncle aunty and no management talent, the stock is not going to go anywhere. i just use my head as a minority shareholder and avoid this share altogether. i understand how family run companies work and this company is like barisan nasional. its never going to change!

2013-05-12 15:48

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