Quite strange that this counter is so quiet. Second quarter EPS is 6.38 sen from revenue of RM24 mil and RM5.7 mil profit which are decent enough. And to think that many people had chased counters like GPRO (revenue RM784,000; loss RM2.1 mil or minus 0.83 sen) - a 10 sen par company to 30 sen a few weeks ago!
PROPOSED ACQUISITION OF 3,970,635 ORDINARY SHARES OF RM1.00 EACH IN GADINI SDN BHD (“GADINI”) REPRESENTING THE ENTIRE ISSUED AND PAID-UP SHARE CAPITAL OF GADINI FROM MALAYSIA BUILDING SOCIETY BERHAD FOR A TOTAL CASH CONSIDERATION OF APPROXIMATELY RM56.17 MILLION
page 7 -> the proposed development is hence expected to result in an estimated gross development profit of approximately rm300.98 million for ken holdings group over the next 6 to 7 years commencing 2013.
http://www.thestar.com.my/Business/Business-News/2014/02/05/Ken-plans-RM2bil-projects-Hotel-and-office-developments-over-2-years-to-boost-earnings/ With the latest announcement, it may not worthwhile to hold this counter anymore for the next 3 years if the hotel projects will commence soon. This is because it may have to call for rights issue or gear up substantially in order to raise funds for the massive hotel projects which may have a long pay back period of 7 to 12 years. So, it may not have any exciting time ahead in terms of profit growth in the next 2 to 3 years. Personally I only invest in companies that have strong profit growth in the next 12 to 24 months.
I. PROPOSED SHARE SPLIT INVOLVING THE SUBDIVISION OF EVERY ONE (1) EXISTING ORDINARY SHARE OF RM1.00 EACH IN KEN ("KEN SHARE(S)" OR "SHARE(S)") INTO TWO (2) ORDINARY SHARES OF RM0.50 EACH IN KEN ("SPLIT SHARE(S)") ("PROPOSED SHARE SPLIT")
I like small contractor / property developer like this. Their PER now is not cheap. However, comapred to big contracting firms like Gamuda and IJM which made few hundred million profit, Ken only made RM20m profit. Nowadays in Malaysia, RM20m profit is peanut, menaing they had plenty of potential to grow. Over the years, small cap contractors cum developer turned out to deliver excellent performance in terms of capital gain. Gadang, Mitrajaya, Crestbuilder, Encorp, SBCCorp, etc...
yes, I can understand. I have been eyeing this company for a long time, but always no action because damn difficult to buy. But today I made up my mind to jump in.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
luckyman
720 posts
Posted by luckyman > 2012-02-20 09:53 | Report Abuse
You are right & your timing is perfect! Great final quarterly result shud be announced soon.