Keladi Maju Berhad engages in the property development and investment holding businesses in Malaysia. The company develops residential and commercial properties. It also engages in the cultivation and sale of oil palm fruits. The company is based in Kuala Lumpur, Malaysia.
Property Division
The property division focus on the north region of Malaysia. Company currently active in the Kedah property development. The projects included as following:
Taman Mahsuri, comprising mixed residential and commercial properties (85% Ocupational Certificate completed, also the main income source for the 2007 financial year with around RM40 million), remaining 524 units of mixed residential and commercial properties laucnhed in the same financial year, will be completed by next financial year.
Taman Mutiara, 72 units shop houses launch in the 2007 financial year.
Taman Cili, 48 units terrace houses & 18 units of semi-D houses launch in the 2006 financial year.
Taman Lagenda (Taman Mahsuri 2), is a mixed development project comprising 4136 units of mixed residential and commercial properties. First batch of 1125 units houses and 82 units shop houses will be developed and launch during 2007 financial year. The remaining will contribute to the next financial year.
Plantation Division
Oil palm plantation, currently fresh fruit production increase significantly 44% to 13709 metric tons compare to 9533 metric tons last financial year. This division contributes RM2.7 millions of pre-tax profit for the 2006 financial year.
Property Management Division
Rental from housing stock and office space in Wisma Keladi contributed RM1.6 millions for the 2006 financial year.
Financial Performance:
Years 2003 2004 2005 2006 2007 Average
ROE 4.82 6.59 7.08 8.22 9.82 7.36 < 10
ROA 4.25 5.81 6.31 6.54 8.46 7.22 < 10
Total Liabilities : Equity = 7.6 : 92.4 (Strong performance)
D/E Ratio = 0
P/E Ratio = 6.9
DY = 61.2
Average Revenue growth rate = -3.33% (5 years)
Average Earnings growth rate = 76.71% (5 years)
Supporting Value:
1. NTA (as at Oct 2007)= RM0.22 = RM 0.22(current price as at 31/12/2007)
2. The management level staff starting to increase company share.
3. No long-long term dept.
4. More than RM45million cash on hand. (rich cash flow)
5. Kulim is one of the famous industrial & ICT area in Kedah, many famous manufacturers and companies build their plant at there. A combanition of commercial properties (such as factories and shop lots) plus residential properties from Keladi Maju Berhad is a good strategy to ensure the demand of the residential housing, because with the rent or sell of especially factory has create a demand of residential housing as well for that area. The increasing demand of residential housing will also create a demand for the shop lots as well.
6. Although the average ROE for Keladi Maju not exceed 10%, but it shows a 5 years consistent increase. It also shows an improvement of the efficiency of the management team and company strategy.
7. The incresing prices for palm oil will directly improve the performance of plantation division in the near future.
8. In view of the removal of the real property gain tax (RPGT), expecting high buying interest on its residential and commercial properties.
9. Northern Corridor Economic Region (NCER) (Malay: Wilayah Ekonomi Koridor Utara) is a new economic development corridor in Malaysia. This programme is a Government initiative to accelerate economic growth and elevate income levels in the north of Penisular Malaysia - encompassing the states of Perlis, Kedah, Pulau Pinang and the north of Perak. The property industry in the north region will benefited from the project as well.
10. Thanks to the government new policy, EPF holders can withdraw their savings from their account 2 to part finance their first or second house. It will increase the demand of the property investment industry.
11. Remaining 2929 units of residential and commercial property development for Taman Lagenda not yet take into account in the 2007 financial year. It will be a big income contribution for next financial year. There are also remaining 55 units of mixed properties in Taman Mahsuri, 36 units of factoriesvvin Kawasan Perindustrian Makmur and 24 units of houses launched in Taman Cili are not take into account in the same financial year.
Upcoming Projects:
1. In FY08, the company is planning to launch 1,125 and 82 units of residential and commercial properties respectively in Taman Lagenda. The new project is located at Padang Serai (Kulim) and is an extension of Taman Mahsuri. We have already factored in the projected contributions from Taman Lagenda in our earnings model.
2. The management plan to purchase lands in the Klang Valley area, in order for the company to start their property development in Klang Valley.
Project Risk:
1. Risks to our recommendation and target price include a slump in property demand in Kulim and/or CPO prices. Being a geographically focused mass developer implies that KM’s earnings hinge heavily on the economic condition of a single region.
2. The increasing material cost around the world will affect the profit margin of the company.
Conclusion:
Keladi Maju Berhad is a company with strong cash flow with very low debt ratio. The company currently achieve a 5 years increasing in the ROE. It had showed an improvement effeciecy of the management team. The company also benefited from the increasing CPO price in the market. With the new government policy and project is also a great affect on the property industry in the future. As a conclusion, Keladi Maju Berhad is an affordable and a undervalue stock for the young investor in the current market.
9 comments:
写得很好的文章。也有足够的资讯，实在帮了我不少。谢谢你！
欢迎你连接我的部落格。我也会把你和Value Investor 的部落格给连接起来。
你拜托我的公司分析，要等下星期才有空。实在不好意思。可以再次重写哪一家吗？
加油！
谢tan81兄，
我将会连接到您的部落格。
我拜托您帮忙的是analabs（7083）。不要紧，您先忙您的，我也将会分享我的分析。
一起加油，向目标迈进！
谢！
Don't you think that it is not a good sign that the company has so much free cash flow but the management has no intention to reinvest it?
Holding too much cash flow would not help a company to grow fast.
You have done a great research and i appreciate it.This is just my opinion. Thank you.=p
hi jeff7, good article, good analysis here. been reading a few other companies research of yours and strongly believe that things will worked out. I read 冷眼's book as well and very interested to be a "fundamental oriented investor".
But one thing i would like to request, can you guys point us out where did you "source out" the information that enable you to do all the analysis and sharing here?
I would like to contribute in researching for the info, coz i believe "practice is the best way to learn". The problem i faced is that i am lack of sources to look out for, and have no idea where to start (some 1000++ counters, which and which to look out for?)
Please advice...anyone... please.. thank you first guys
Dear Yih,
First of all nice to meet you.
Is good to be a fundamental investor. But as a new fundamental investor, how to start and where to start is very important.
Let me share my investment experience with you:
Still remember when the time i enter the "risky" stock market, i ask myself the same question that u ask me now, where i should start? How i start? There are more than 1000 stocks in KLSE, which is undervalue, which is worth to invest now or in the future. At that time, stock market is risky for me, because i do not know investment. But when u learn & learn from experience, u will found that stock market is not risky that u thought, if u hold the stock that have bright future, stable, have good ROI. So "risky" is depend on people.
Still remember, the first stock that i bought in my life is Dialog. Second is RHBCAP. Same like you, i do not know where to start. So how i decided to buy these two stocks? Where i source it. Honestly i got it from newspaper, which some analyzer show their interest into these stocks. I am not buying it on the spot, i put it into my radar. Because i know that, the stock that show in the newspaper is already not cheap. But i wait, wait until it worth.
So as a new investors, i can suggest u choose the stocks that other experience investor's share in thier blog,book or forum. But do not buy it on the spot. Because every people have their own investment risk level. Every people have their own choice. Like me, i will ignore the stock that in IT industry(MESDAQ), the one related to crude oil as raw material, like airasia and other transportation industry, because their earning will fluctuate depend on the oil, printing industry & packaging industry as well.
Try to analyze the stock that other experience investor picks. There must be a reason on thier picks. But ignore the one which do not have reason, or simply says. Try to check their ROE,ROA, their cash flow, intrinsic value, EPS growth rate, thier debt ratio as well.
I am happy to hear that u want to learn as a fundamental investor, i am keen to show you my information sources with you:
1. www.bursamalaysia.com - as a fundamental investor, how to study an annual report is very important. u can download all the annual report & quaterly report for the thousand of stocks in the market here.
2. http://www.investasiaonline.com/ - I source some of the info here as well.
3. www.hotstocks.com.my - u can souce your picks here. because one people hard to analyze all the potential stock by himself. One man show is not easy.
4. www.thestar.com.my
5. i quite prefer the author in malaysia called Ho Kok Mun. His theory can use as reference
6. New monthly reading material, SHARES
7. If u do have register with other paid website, some of them provide a lot of extra information
8. www.einvest.com.my
9. www.theedgedaily.com.my
Today, i share until here. Busy these few weeks. Will try to share more with you all. Thanks for your support.
Regards,
Jeff
If i want to buy share now, keladi should be the safest and potential capital gain cum dividend income stock within 1-2 month. Keladi had proposed 1.5 sen dividend and soon will annonce the date of entitlement. This dividend alone already give yield of >12%. In addition, look at current share pattern, It seem there are some market maker in which one party try to push higher while other push lower to accumulate more share. I think 12-13 sen is keladi strong support line and once it break, in line with dividend entitlement, shareholder should realize handsome gain as every half sen movement will generate positive return.
Dear hng,
Thanks for your comments & sharing. I appreciate it very much. Hopefully we can move together in our investment journey.
Review of Performance
For the three months ended 30 April 2008, the Group reported a turnover of RM11.556 million which was 1.74% higher than the preceding year’s corresponding period turnover of 11.358 million. The profit before tax and minority interest was RM5.310 million, an improvement of 9.48% from RM4.850 million achieved in the previous corresponding period.
Group’s profit for the financial period was mainly from the property development activities and sale of fresh fruit bunches (FFB).
Dear Jeff
Keladi have officially annonced date of entitlement for second and final dividend. Keladi property is still selling well with taman legenda achieve 74% take-up rate, which may due to it relatively captive area and low-middle cost property always command steady demand (property always view as solid asset and counter inflation in rural population). In addition, keladi low land cost would mitigate rising cost of building material without adversely affect it margin. Property development still contribute bulk of its earning 79% with remaining from palm oil production. based on first quarter result of 0.52sen, annualized 2.08sen, keladi is trading at PE=6.25x. I think keladi can afford pay most of its earning as dividend in view of steady earning from property and plantation and large cash reserve. Even most of property counter suffer mulit-year low, keladi has manage hold steady at 13 sen, probably because of its good fundamental, prudent capital management and compelling valaution as well as limited downside.
Post a Comment