Monday, April 27, 2015

'Like' - Knusford (Sultan Of johor and Tan Sri Lim as Major Sharehlders)

It is principally a trading company for building materials that also provides sales and rental of heavy machinery. The two segments accounted for roughly 80% of revenue with the remaining 20% coming from construction and property development.

The company’s major shareholders are the Sultan Of Johor and Tan Sri Lim Kang Hoo, who is a major shareholder in Ekovest and Iskandar Waterfront City Bhd.

It has a good earnings track record. Except for the distortion from an exceptionally high profit in 2011 (that was lifted by completion of the rm538 million coastal highway project in Iskandar Malaysia), earnings have been trending higher.

For 2014, revenue rose 37.8% to rm410 million buoyed by sand supply contract (for the Plentong area) and completion of the Kajang Perdana property development project. Despite its loss making construction division and a rm7.4 million receivables write off, net profit increased 20.2% to rm27.9 million.

It will benefit from on going construction works in Malaysia.

Earlier 2015, it formed a 45:55 joint venture with the construction arm of China’s state owned Greenland Group to bid for major building jobs and infra projects in Malaysia. The latter has two massive waterfront developments in JB, namely Danga Bay and Tebrau Bay.

It has a solid balance sheet with net cash of rm52.6 million or rm0.528 per share.

The stock is trading at a trailing 12 month PER of 6.6 times compared to its 20% profit growth during this period. Its book value stood at rm2.95. Excluding cash, its PER stands at a mere 4.7 times.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.