KSL just announced its last quarterly. It was spectacular, well not just last quarter, look at the last 5 quarters. While many property companies have been suffering, KSL has been thriving, buying land cheap, diligently adding value, … recently opening the biggest mall in Klang, the Esplanade quietly. Apa lagi lu mau…??
Look at the NTA: RM3.33 … current share price is around RM1.00. They have been conserving cash by not paying dividends since 2015, and wisely so as to push through the difficult years for property counters.
Net cash company with RM348,403,000 in bank account
Retained Earnings:RM2,695,442,000(RM2.695 billion) as of 31 March 2023
Call it deep value, the stock has used its cash well. Last year it bought 54 acres of land from Tropicana in Johor for RM103m. Judging from the recent announcement for the big Johor property nugget, it was timely.
The stock can trigger a huge revaluation since the NTA is so far away: one is the attraction in going private; two is giving a 10-20 sen dividend. They have not given any since 2015. The company should reward loyalty and themselves soon.
The directors’ emoluments is a bit rich. The company has not paid dividends since 2015, so the directors and owners should “suffer” alongside with shareholders. This does not look good no matter how you cut it. Yes, you made more than RM100m in net profit last year and look set to make more than RM300m this year. As a percentage of net profit, is not justifiable.
At least the company is still highly profitable.
Looking at the table, the controlling shareholders should collectively have more than 75% locked up. No point in holding so many shares unless you are going to reward yourselves or take it private.
Disclaimer: This is not a call to buy or sell, just an opinion from a market watcher, please consult your dealer or remisier before any action.