After the stock closed yesterday, KSL announced its 4th quarter EPS which is 40.76 sen and its net tangible asset (NTA) backing of Rm 3.65. Its profit increased by 230% more than last year. As a result all shareholders expected the share to shoot through the roof.

KSL is the cheapest based on PE ratio among all the top leading property developers listed on Bursa Malaysia.

KSL buys land from S P Setia for RM229mil as reported by The Star.

Friday, 24 Nov 2023. PETALING JAYA: KSL Holdings Bhd is acquiring freehold land measuring 72,820 sq m in Shah Alam, Selangor, from S P Setia Bhd for RM228.8mil. In a filing with Bursa Malaysia, KSL said the acquisition will enlarge the group’s land bank and enhance its future revenue and earnings. 

KSL has a market capitalization of Rm 1,587 million and the total number of issued shares is 1,038 shares. Its NTA is Rm 3.65 per share and the last traded share price is Rm 1.73 per share.

In 2015 KSL gave out 2 sen dividend. Since then the company has not given out any dividend.

How can shareholders benefit if the company did not give out dividend. That is why its share price remained depressed?

What can KSL do to benefit shareholders?

1 Since the company is so cash rich to buy land from S P Setia for Rm 228.8 million, the company must give out more dividend.

2 Since its NTA is Rm 3.65 per share and its share price is Rm 1.72, the best business KSL can do is to buy back its own shares. It can make more than 100% profit instantly without any risk. This is the safest and fastest way to make profit.

3 Obviously, some of the company directors are not efficient. They should be replaced.