Thursday, October 23, 2014

KSL ... High Profit Margins Among Property Companies

A Johor based property developer has attracted consideration attention resulting in the stock becoming one of the top performers in the last quarter.

It is still trading at a trailing 12 month low of PER of 7.64 times and 1.05 times book value, with growing earnings and high margins.

Its developments are mostly based in Johor.

It has also ventured into the Klang Valley and is developing a 496 acre township called Canary Garden in Klang and a luxury condo in the KLCC area.

The company has a land bank of some 2000 acres and has unbilled sales of rm1 billion.

Its revenue surged from rm273 million in 2011 to rm680 million in 2013 while net profit increased from rm81 million to rm182 million the same period. For 1HFY2014 the company reported a 22.4% increase in net profit to rm140 million.

KSL has one of the highest profit margins among property companies with 32.7% chalked up in 1HFY2014.

It had managed to reduce its gearing from 23.12% in FY2011 to only 8% in 213.

Historically the company has not paid out any dividends, as it has been on an expansion path. However the company has slated its intention to have dividend payout.

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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.