prudentinvestor

Keck Seng has almost 5,900 acres of oil palm estate including 50 acres of industrial land just north of Tanjung Langsat Port. Part of the land is leasehold but the lease expires in 2115. The net book value of this piece of land is only RM32.6 million.

2 months ago

prudentinvestor

Should Tanjung Port need more land for expansion and buys land from Keck Seng, the cost of the land would likely be 80 to 100 times the net book value.

2 months ago

prudentinvestor

Those who wish to invest in Keck Seng better act fast. When the RTS is completed in two years time, you may not be able to get Keck Seng shares at below RM8.

2 months ago

prudentinvestor

Those who wish to invest in Keck Seng better act fast. When the RTS is completed in two years time, you may not be able to get Keck Seng shares at below RM8.

2 months ago

Diamond7

2027. After the completion of RTS...
JB n Spore becomes one city!
FDI will flow in..
Population of JB will increase by keeps n bounce!!!
Industrial lands n JB properties will be sold at higher n higher price!
EPS of KSeng will rocket high!
KSeng share price may touch RM8/9/10
Be forward looking n move in the right direction!

2 months ago

Diamond7

Leeps

2 months ago

kk7198

SAB's twin brother.

2 months ago

prudentinvestor

Keck Seng's net cash per share is RM3, SAB is RM2. Your forecast about Oriental was chun chun.

2 months ago

kk7198

@prudentinvestor, still not late to join us. I foresee if the restructuring is on, it will trade above RM10.00 next year.

2 months ago

prudentinvestor

@kk7198, I topped up some Keck Seng shares quite a few months ago. If you had recommended Oriental Holdings earlier, I certainly would consider investing in the company. Now I am holding back on further investments.

1 month ago

kk7198

@prudentinvestor, now is a good time to buy Oriental Holding. Div yield is 7% which you need to wait for the next one. Price has weaken a bit. Just buy and keep for next year.

1 month ago

prudentinvestor

Price movements are very artificial. People in the know are accumulating.

1 month ago

kk7198

So true especially for counters which have low free floats. Oriental consolidation looks like is over, time to move up again.

1 month ago

kk7198

So true especially for counters which have low free floats. Oriental consolidation looks like is over, time to move up again.

1 month ago

prudentinvestor

Fortunately for Keck Seng but unfortunately for our country, Ringgit's sudden drop over the past few weeks has substantially pared down Keck Seng's foreign exchange losses from over RM60 million as of around 30/09/24 to just over RM20 million today. This is insignificant for a company that has the ability to make over RM200 million net this year.

1 month ago

prudentinvestor

@kk7198, I have some investments in oil palm counters, hopefully palm oil prices would move further up, triggering a strong rally in palm oil counters just like what happened 2 years ago. Would dispose all this time and switch to Oriental Holdings. Pray for me Oriental would stay at this level for a while. 🤣🤣

1 month ago

compoundingeffect

is foreign currency loss a non operation siisue?
Foreign currency losses can indeed be considered non-operational issues, depending on the context and the way a company's financial statements are prepared. Non-operational items are typically those that are not part of the company's core business activities. Foreign currency losses often fall into this category because they arise from fluctuations in exchange rates rather than the company's primary operations.

For example, if a company based in Malaysia has investments or operations in the United States, the value of these investments can fluctuate with the exchange rate between the Malaysian Ringgit (MYR) and the US Dollar (USD). These gains or losses from currency exchange would typically be classified as non-operational in the financial statements.

1 month ago

compoundingeffect

I like the concept of owning Kseng and enjoying the "free landbank " dated back in 1980. Why is the land bank considered "free"? This is because the cash per share of the company is about RM3.2. + the company investment in securities RM1.15 and recurring rental income RM2.65=RM7 which is already higher than the current share price RM5.8. Kseng owns 9000+ acres of land in Johor. For every 1000 share of Kseng share is equivalent of owing 0.02365 acres of land.

1 month ago

compoundingeffect

Land is considered a valuable investment for several reasons:

Appreciation in Value: Over time, the value of land tends to appreciate, especially in areas with growing demand due to population growth, urbanization, and economic development.

Scarcity: Land is a finite resource; there’s only so much of it available, which makes it inherently valuable.

Versatility: Land can be used for various purposes, such as residential, commercial, agricultural, or industrial developments, giving investors multiple options to generate income.

Tangible Asset: Unlike stocks or bonds, land is a physical asset that you can see and touch. This can provide a sense of security for some investors.

Hedge Against Inflation: Land often retains its value and even appreciates during periods of inflation, making it a good hedge against the declining purchasing power of money.

Passive Income: Land can generate passive income through rental yields or leasing, particularly in the case of agricultural land or properties developed for commercial use.

1 month ago

compoundingeffect

Buying a listed entity solely because of its undervalued landbanks can be a risky strategy. While undervalued landbanks might seem like an attractive opportunity, there are several factors to consider:

Market Conditions: The real estate market can be highly volatile. Economic downturns, changes in government policies, and shifts in market demand can significantly impact the value of landbanks2.

Company's Financial Health: It's crucial to assess the overall financial health of the company. Even if the landbanks are valuable, the company might have other liabilities or operational issues that could affect its performance.

Development Potential: The potential for development and the company's ability to execute development plans are important. Not all landbanks are equal; their value depends on location, zoning laws, and the feasibility of development projects.

Management Quality: The quality of the company's management team and their track record in successfully developing landbanks can make a significant difference.

Regulatory and Legal Risks: There might be legal or regulatory challenges associated with the landbanks that could affect their value.

1 month ago

prudentinvestor

Suffering from huge foreign exchange losses, What a joke! The management needs to be blamed for keeping cash in foreign currencies instead of investing in shares, especially banks counters. DBS Bank and UOB have both risen by over 100%, including dividends over the past 4 over years. This is a better bet but the management doesn't seem to know.

1 month ago

compoundingeffect

agree that management should get the money invested instead of holding cash. How do we know what will be the exchange rate next month or next year? BTW, it is expected next quarter will be forex gain.

1 month ago

compoundingeffect

look at the retained earnings 2,222,113,000 vs the share capital 372,005,000, it should be right for the board to declare bonus every 3 years so that share will be more liquid and more appealing to institution investors. Liquidity is an issue for fund to consider buying a share.

1 month ago

speakup

Massive loss! Sure up on Monday sama macam Pchem. In bursa, only big loss making company can up because bursa is manipulated

1 month ago

prudentinvestor

Not surprising if it goes up on Monday because it made RM46 million net if foreign exchange losses amounting to RM82 million are not included.

1 month ago

prudentinvestor

Those who do not know the details of Keck Seng's financial results would sell this morning. Those who know are picking up the shares and smirking.

4 weeks ago

kk7198

@prudentinvestor, now is the best time for you to buy Oriental.It was thrown down heavily by some big guys. No worries....like K Seng, buy when it comes down a lot. Fundamental is still intact.

4 weeks ago

compoundingeffect

The 11th Malaysia-Singapore Leaders’ Retreat will focus on several key topics:

Finalizing the Johor-Singapore Special Economic Zone (JS-SEZ): Both countries aim to sign the JS-SEZ Joint Agreement.

Enhancing Cross-Border Flows: Improving the flow of goods and people between Malaysia and Singapore.

Business Ecosystem: Strengthening the business environment within the SEZ to support investments.

One-Stop Business Service Center: Establishing a center in Johor to facilitate approvals and licenses for Singapore businesses.

Passport-Free QR Code Clearance: Implementing a QR code system for easier border crossings.

Digitized Cargo Clearance: Adopting digital processes for cargo clearance at land checkpoints.

Investor Forum: Co-organizing an investors forum to gather feedback from businesses in both countries.

Talent Development: Curating training and work-based learning initiatives to address skills gaps.

Joint Promotion Events: Developing events to promote collaboration between Malaysia and Singapore

3 weeks ago

compoundingeffect

On October 20, 2022, KSM and its 99.8%-owned subsidiary, Lim & Lim Plantations Bhd, signed a comprehensive development agreement to allocate 20 acres of land to MBPG. This land will be used to develop a new administrative center in Pasir Gudang City

3 weeks ago

compoundingeffect

The Tanjong Puteri Resort TechPark in Pasir Gudang will offer several types of industrial land, including:

Freehold Industrial Land: Available for purchase at approximately RM 79.96 per square foot.

60-Year Leasehold Industrial Land: Available at around RM 52.00 per square foot for smaller plots and RM 60.42 per square foot for larger plots.

The TechPark will feature state-of-the-art facilities, including advanced infrastructure, ample parking space, and access to essential services. This development aims to attract a wide range of industries, from manufacturing to logistics and technology.

3 weeks ago

compoundingeffect

prudentinvestor, would you mind to compute the actual value to be unlock? will investor still claim that Kseng a value stock or growth stock in coming years?

3 weeks ago

compoundingeffect

I strongly believe the value unlocking engineering is in progress...................after so many n n n years.

3 weeks ago

compoundingeffect

PREDICTION OF 4TH QTR FYDEC2024 PRETAX PROFIT

PROPERTY DEVELOPMENT &INVESTMENT= RM32M
HOTEL BUSINESSES IN USA &CANADA =RM 10M
OLECHEM MANUFACTURING =RM10M
PLANTATION =RM8M
INTEREST INCOME =RM9M
DIVIDEND INCOME =1M
FOREIGN CURRENCY SAVING (FOREX)=RM45M
TOTAL PRETAX PROFIT =RM115M

Assumptions of the prediction of next qtr profit:-
1. based on current forex: USD -MYR 4.47, SGD-myr 3.33
2. businesses most affected by USD= Hotel in USA & Canada and Oleochem products for export
3. On 30sept2024, Forex USD -MYR 4.12, SGD-MYR 3.2
4. 3rd qtr FY Dec2024: Forex losses -RM76m,
co. pretax loss -RM36m,--->co. pretax profit excluding Forex losses =RM76m-RM36m=RM40m
(this is not a recommendation to buy or sell, purely for academic study!)

3 weeks ago

compoundingeffect

WHY I THINK KSENG IS AGGRESIVELY UNLOCKING IT'S LANDBANK THROUGH PROPERTY DEVELOPMENT?

According to annual report 2022, Bandar Baru Kangar Pulai township, Skudai, Johor Baru.
June2022 launched 132units two story cluster house
Dec2022 launched 139 units two story terrace house
2022 Total 271 units, GDV =RM140M

In 2023, Bandar Baru Kangar Pulai
May2023 launched 172units two story cluster house
Nov2023 launched 112units two story terrace house
Total 284units GDV=RM160

Taman Tanjung Putreri Resort , Pasir Gudang, JB
May2023 launched 113units single story terrace house
Nove2023 launched 88units two story terrace house
Total 201units GDV=RM70m

TPR Industrial Tech Park phase 1, 6.6acres in Pasir gudang
GDV=RM20m

2023 Total GDV= RM160m+RM70m+RM20m=RM250m

In 2024, Taman Daya , JB (12KM from JB city center)
March 2024 launched 106units Bungalow , Semi-D and cluster house
Pending launching 850units service apartment
pending launching 90units Bungalow, semi-D, cluster house
Total 1036units , GDV =RM220m+RM300m=RM520m

Bandar Baru Kangar Pulai township
Pending launching 280units landed properties, GDV RM160m
Luanched 72units two story shop office RM50m

TPR Industrial Tech Park , Pasir Gudang 2nd phase 192acres
Pending launching GDV=RM600m

New township in Masai JB: Taman Bukit Cahaya
Pending launching 95units two story terrace house , GDV RM40m

2024-2025 1qtr Total GDV=RM520m+RM160m+RM50m+RM600m+RM40m=1.370b

Property development GDV from RM160m in 2022 to RM1.370b in 2024-2025 Ist qtr. 800% increase !! How do we quantity these into EPS?

3 weeks ago

compoundingeffect

https://www.klsescreener.com/v2/comment/7296685

2 weeks ago

compoundingeffect

Keck Seng’s fundamentals and asset strategy make it a unique player in the Malaysian market. Here’s an analysis based on your points:

1. Financials and Cash Flow

• Keck Seng has historically shown stable revenues but with some cyclicality, largely due to its diversified businesses, which include plantations, property investment, and hospitality.
• Its cash flow generation has been strong, driven by its plantations and investments in real estate, but recent volatility in commodity prices and property demand could impact future consistency. Keck Seng’s cash reserves often reflect its conservative approach, which can be positive during downturns but may restrict high growth potential.

2. Reserves and Asset Valuation

• A key strength of Keck Seng is its substantial land holdings, many acquired in the 1950s and 1960s at relatively low costs, primarily in prime locations. This provides it with significant unrealized gains, as property values have appreciated immensely. These reserves allow the company to secure long-term stability and asset backing.
• A revaluation of these assets to current market prices could reveal a much higher net asset value (NAV) than what’s currently recorded. The unrealized potential from these assets provides a cushion against economic downturns and enhances Keck Seng’s book value.

3. Asset Retention Strategy

• Keck Seng may choose to retain assets rather than sell or distribute proceeds to shareholders for several reasons:
• Strategic Flexibility: Keeping assets allows the company to leverage them in downturns or use them as collateral for future expansions.
• Long-Term Appreciation: Holding assets allows Keck Seng to benefit from continuous land appreciation, a likely motivation given the inflation-resistant nature of land investments.
• Internal Expansion: Retained assets can be redeveloped or used to expand existing business segments, especially if Keck Seng plans to diversify or increase its footprint in high-value areas.

4. Expansion and Future Prospects

• Keck Seng has potential opportunities in redeveloping some of its older assets, possibly into mixed-use or commercial properties that could yield higher income.
• Diversifying more actively into sectors with growth potential—such as sustainable agriculture or tourism-oriented hospitality properties—could help improve growth rates.
• Partnerships or joint ventures with larger players could also provide a pathway to unlock the latent value of Keck Seng’s assets without heavy capital expenditure.

5. Strategies to Elevate Keck Seng’s Market Standing

• Unlocking Asset Value: A partial revaluation or selective sale of high-value assets could unlock hidden value for shareholders and potentially offer special dividends.
• Improving Transparency: Enhanced reporting on asset valuations, future plans, and business segment performance could boost investor confidence and attract institutional interest.
• Capital Optimization: Reinvesting capital into high-growth areas or issuing dividends from asset sales could appeal to shareholders, enhancing market value and Keck Seng’s attractiveness as an investment.
• Modernizing Business Lines: Expanding into digitalized agribusiness, eco-tourism, or sustainable hospitality may set Keck Seng apart as a forward-looking company that maximizes its legacy assets.

2 weeks ago

compoundingeffect

This article appeared in The Edge Financial Daily, August 17, 2010.

Asset-rich, most properties not revalued for decades
Keck Seng has four major operating segments — manufacturing, processing and marketing of refined palm oil products; hotels and golf resorts; property development and investment; and the cultivation of palm oil plantations.

For FY2009, manufacturing made up 70% of the RM913 million revenue, hotels and resorts contributed 12.9%, property development made up 8.2%, oil palm plantations 3.2% and share investment contributed 5.7%.

Parkway has sizeable plantations and property assets. Most of its plantation and property assets have not been revalued for decades, and have low book values which appear to be below market valuations.

Its Parkway stake, for instance, was acquired at low costs. From the disposal proceeds of RM327.49 million, the company will book in a one-off gain of RM260.14 million, implying investment cost of just RM67.35 million.

This will increase Keck Seng’s Dec 31, 2009 net assets per share from RM4.98 to RM6.07, slightly above the current share price of RM5.79.

The book value of its other assets have not been revalued for a long time and also appear undervalued.

Based on the company’s annual report for the financial year ended Dec 31, 2009 (FY2009), the last time its property and plantation landbank, mainly
located in Johor, was revalued was in April 1980.

Keck Seng has a total planted area of 3,673 ha, which produced 77,571 tonnes of fresh fruit bunches in FY2009.

Land held for property development in the southern state include the 208ha Tanjung Puteri Golf Course In Pasir Gudang, and residential /commercial land in several developments, namely Tanjung Puteri Resorts in Pasir Gudang (3.9 million sq m), Bandar Baru Tangkar Pulai in Pulai (2.13 million sq m) and Taman Daya, 13km from Johor Bahru (522,647 sq m).

Keck Seng also has an interesting portfolio of commercial properties.

The main assets consist of two hotels — the Doubletree Alana Waikiki hotel in Honolulu, Hawaii and Doubletree International Plaza in Toronto, Canada, the Menara Keck Seng office tower along Kuala Lumpur’s Jalan Bukit Bintang and the Regency Tower serviced apartments on Jalan Ceylon in Kuala Lumpur.

As for the buildings, most of the valuations were done in 1996-2000, with the latest in July 2006 for the Regency Tower apartments.

Menara Keck Seng was last valued in August 1996 at RM58.645 million for a floor area of 24,538 sq m or 264,125 sq ft. This translates into a book value of just RM222 per sq ft. In contrast, current property values for prime Kuala Lumpur office space is estimated at RM700 to RM900 per sq ft, on a net lettable area basis.

https://theedgemalaysia.com/article/keck-seng-unexpected-beneficiary-parkway-tussle

2 weeks ago

compoundingeffect

Keck Seng is the Largest landowner in Iskandar Malaysia

1. Bukit Chantek, Tong Hing & Tanjong Langsat Estate
10km east of ulu Tiram and about 30km from JB
Freehold/leasehold
2,382 hectar (planted area) or 5886 acres
book value: RM32,634m
last revaluation: 18-apr1980

2. Lim &l Lim Estate, Pasir Gudang, JB
2026acres Freehold

3. Bandar Baru Kangar Pulai
26km north-west of JB , Alongside of Jalan Skudai-Pontain road
Freehold/leasehold 586acres
Development of residential, commercial units and industrial land
book value =RM167,434m
last revaluation date: 18apr1980

4. Tanjong Putri Resort, 35km south-east of JB, Adjacent to Pasir Gudang Industrial Estate, Freehold =="Taman Tanjong Putri Industrial Tech Park, Pasir Gudang, JB 1126acres

5. Taman Daya Township, JB
Freehold 30acres

6. Taman Bukit Chaya Township, Masai, JB
Freehold 115acres

Total=9769 acres
Source: Annual report FYDec2023, FY Dec2012


According to RHB Research 13May2024, major landowner in Iskandar Malaysia
UEMS 7678 acres
IOIP 5448 acres
SPSETIA 2189 acres
ECOWORLD 1536 acres
MAHSING 1182 acres

Conclusion : Keck Seng is the largest landowner in Iskandar Malaysia

2 weeks ago

compoundingeffect

Q25) Please provide an update on the sale of industrial land in TPR Tech Park and the
selling prices achieved?
A25) There were four plots of industrial land sold in TPR Tech Park at prices averaging RM70
per square foot.

Source:
https://my.keckseng.com/minutes/KSM-Minutesofthe54thAGM.pdf

2 weeks ago

compoundingeffect

Q28) How many acres of land have been converted into industrial land titles for TPGR?
A28) 50 acres in TPR Tech Park 1 and 182 acres in TPR Tech Park 2, totalling 232 acres.

Source:
https://my.keckseng.com/minutes/KSM-Minutesofthe54thAGM.pdf

2 weeks ago

compoundingeffect

#TPRTechParkMalaysia is a FREEHOLD light, medium and heavy industrial hub developed by Keck Seng Group with favorable geographical location in the heart of Pasir Gudang, Johor and with synergistic proximity to Tanjung Langsat Port, Johor Port, Senai International Airport, Johor Bahru city and Singapore. Phase I and II of #TPRTechPark Malaysia features prime and highly-usable sized land parcels FOR SALE and situated right next to the main trunk road of Jalan Pekeliling connecting industrialists and enterprises to and from Tanjung Langsat Port, Johor Port, Senai International Airport (via Senai-Desaru Expressway), Johor Bahru city (via Pasir Gudang Highway) and Singapore (via the Eastern-Dispersal Link Expressway and the Causeway). Owners, Management and Staff of enterprises in TPR TechPark Malaysia can also look forward to attractive housing opportunities as well as lifestyle amenities with matured and established surrounding townships of Tanjong Puteri Resort #TPR by Keck Seng Group, Taman Pasir Putih, EcoTropics (Taman Kota Masai) and Taman Scientex Pasir Gudang.
*Pasir Gudang Industrial Land for sales:
16000-48000sq meters (4-12 acres)
Be a part of catalytic growth /Direct from developer TPR Tech Park I &II

9 minutes arrive Tanjong Puteri Port
9minutes arrive Johor Port
35minutes arrive CIQ Sultan Iskandar (Ist Causeway)
40minutes arrive Senai International Airport
60minutes arrive Rapid Pengarang

*industrial land for sales, 6 phases, 1126acres
Commercial properties development =114acres


source:
https://www.facebook.com/hashtag/tprtechparkmalaysia

2 weeks ago

compoundingeffect

TPR INDUSTRIAL TECH PARK, PASIR GUDANG, JB
(A) 11259 acres, freehold title
(B) Master Plan :
Phase 1 : 6.6acres
Phase 2 : 192acres
Phase 3: 235.2acres
Phase 4: 291.4 acres
Phase 5: 277.7 acres
Phase 6: 123acres
Total = 1125.9acres

(C) Phase 2, 192 acres expected to be launched first quarter 2025

(D) Expected selling price: RM70 per sq ft / RM3.05m per acre

https://my.keckseng.com/minutes/KSM-Minutesofthe54thAGM.pdf

(E) Assume 192acres fully sold in FYDec2025
GDV =RM585m
Less RM117m (20% being cost of the GDV)
Pretax profit =RM468m
-Tax (24%) RM112m
Net profit RM356m , EPS =RM0.99

Conclusion: Earning per share of Ksek Seng is ecpected to cross RM1.00 in FY 31-12-2025

Note: (1) This Tech Park is from conversion of TPR Residential Property Development 893 acres and TPR Golf course 233 acres
https://my.keckseng.com/minutes/KSM-Minutesofthe54thAGM.pdf

(2) TPR stand for Tanjong Putri Resort in Pasir Gudnag, District of Johor Baru

1 week ago

prudentinvestor

"2. Lim &l Lim Estate, Pasir Gudang, JB
2026acres Freehold"
@compoundingeffect, since 2021, Lim & Lim (Kong Kong) , a 820 hec freehold land under oil palm cultivation has been omitted from the list of major properties owned by the group. At RM500,000 per acre, this piece of land is worth RM1 billion and is not insignificant.

1 week ago

compoundingeffect

Extract from annual report 2005
SIGNIFICANT EVENTS
(a) During the year the Group received an amount of approximately RM45.4 million being compensation for 181 acres of
plantation land acquired by the Johor State Government for construction of expressway. The gain arising from this acquisition
is approximately RM39.5 million.

In 2005, RM45.4m/181acres= RM250,828 per acre, Government of Malaysia is compensating not just based on agriculture land. After 19years, most of the area surrounding already developed into Taman-Taman. This is also to proof that Keck Seng landbank is equipped with great potential for property development. How much per acre do you think now? With the SEZ signed, how much more do we expect?

@prudentinvestor, your estimation RM500,000 per acre is realistic and probably underestimate if SEZ is confirmed.

From the earning point of view, see how much its made , selling RM45.4m and gain RM39.5m, the cost was only RM5.9m.

This is why I think Keck Seng will becomes "growth stock" when the company start to sell TPR tech park phase 2 in 2025

1 week ago

compoundingeffect

is it better to buy land throgh listed copany rather than direct?
There are pros and cons to both buying land through a listed company and purchasing it directly. Here are some considerations for each option:

Buying Through a Listed Company:
Pros:

Professional Management: Listed companies typically have experienced teams that handle the acquisition, development, and management of the land.

Due Diligence: These companies often perform thorough due diligence, reducing the risk of potential issues with the property.

Liquidity: Investing in a listed company can be more liquid than owning the land directly, as you can sell shares in the company more easily than selling land.

Diversification: By investing in a company, you're often exposed to a portfolio of properties, which can spread risk.

Cons:

Management Fees: You'll typically pay fees to the company for managing the properties.

Less Control: You won't have direct control over the land or decisions related to it.

Market Risk: The value of your investment can be affected by broader market conditions, not just the value of the land.

Buying Directly:
Pros:

Full Control: You have direct control over the land and can make decisions about its use and development.

No Management Fees: You avoid paying fees to a third party for managing the property.

Potential for Appreciation: Direct ownership allows you to benefit fully from any appreciation in the property's value.

Cons:

Time and Effort: Managing and maintaining the land can be time-consuming and require significant effort.

Higher Risk: Direct ownership comes with all the risks of property ownership, such as legal issues, zoning changes, or environmental problems.

Liquidity: Selling land can be more challenging and take longer than selling shares in a company.

Ultimately, the best choice depends on your investment goals, risk tolerance, and the level of involvement you want in managing the property.

1 week ago

compoundingeffect

Keck Seng , listed in 1977 owns about 9531 acres of land in JB
Below is real asset value of Keck Seng:-
(a) Net cash =RM1106.36m RM3.08/s

(b) Investment in securities =RM414.93 RM1.15/s

(c) Investment Properties : RM950m RM2.64/s

(d) 7912 acres plantation land in Pasir Gudang, JB
Revaluation RM0.5m per acres, Total RM3956 RM11.01/s

(e) 1626 acres property development land in Skudai, Terbau, Pasir Gudang, JB
revaluation RM1.5m/ acre, Total RM2439m RM6.79/s

(f) Hotel (2in USA in 1 in Canada), valuation from yr 1997 to 2014
Total RM407m RM1.13/s

(g) 514acres Pasir Gudang Golf course , 1980 valuation
RM81m RM0.22/s

(h) 51.6 acres olechemical factory RM50m RM0.14/s

(i) Other assets in balance sheet RM250m RM0.57/s

Total Asset Value: RM9654.29m RM26.87/s

(source of information, annual report FY2023 and FY2005 and 2018 minutes AGM of Keck Seng, year 2024 & documents from Keck Seng's sales gallery.

1 week ago

prudentinvestor

"Total Asset Value: RM9654.29m RM26.87/s"
Should the management decide to take the company private, small shareholders can consider themselves lucky if the management offers them not less than RM10 a share.

1 week ago

compoundingeffect

the underlying value of a company (often referred to as its intrinsic value) is generally considered more important than its current share price.

Here's why:

Intrinsic Value: This is the perceived or calculated true value of a company, based on fundamentals such as earnings, dividends, growth potential, and overall financial health. Long-term investors often focus on intrinsic value because it represents the company's real worth, independent of market fluctuations.

Share Price: This is the price at which a stock is currently trading on the market. It can be influenced by various factors like investor sentiment, market conditions, news, and short-term events. While the share price provides a snapshot of what the market is willing to pay for the stock, it doesn't always reflect the company's actual value.

For example, a stock could be overvalued if its share price is higher than its intrinsic value, which might be driven by hype or speculation. Conversely, a stock might be undervalued if its share price is lower than its intrinsic value, presenting a potential buying opportunity for savvy investors.

To sum up, while the share price is important and relevant for buying and selling decisions, the underlying value gives a more accurate picture of a company's true worth and long-term potential.

4 days ago

compoundingeffect

Several factors can drive a share price to move up, and the most convincing ones usually revolve around the company's performance and market perception. Here are a few key factors:

Strong Earnings Reports: Companies that consistently report higher-than-expected earnings tend to see their share prices rise. Investors are drawn to profitable companies with strong financial performance.

Positive News and Developments: News of new product launches, strategic partnerships, acquisitions, or expansions can boost investor confidence and drive the share price up.

Economic Indicators: Broader economic trends, like GDP growth, lower unemployment rates, or favorable interest rate changes, can positively impact share prices as they suggest a healthy economic environment for businesses.

Analyst Upgrades: When financial analysts upgrade their ratings or increase their price targets for a stock, it often leads to increased investor interest and higher share prices.

Strong Management and Leadership: Effective leadership and a clear strategic vision can instill confidence in investors, making the company’s stock more attractive.

Market Sentiment: Investor sentiment, driven by overall market trends and investor behavior, can also play a significant role. Bullish markets often lift share prices as more investors buy stocks, whereas bearish markets can have the opposite effect.

Supply and Demand: Basic supply and demand dynamics in the stock market influence share prices. If more investors want to buy a stock than sell it, the price will likely increase.

Technical Indicators: For some traders, technical factors such as moving averages, support and resistance levels, and trading volumes can signal potential price movements.

4 days ago

prudentinvestor

@compondingeffect, your estimate of the NTA of Keck Seng at RM26.87 a share could well be accurate. Unfortunately (but fortunately for those savvy investors who have the opportunity to pick up Keck Seng shares at fire sale prices) it is trading at less than a quarter of its intrinsic value.

11 hours ago