Thursday, March 1, 2012

KSL (BUY) - A Transition Year


KSL (BUY)
A Transition Year
  • FY11 core net profit rose 48% yoy to RM87.9m, making up 94.5% of HLIB's full-year estimates. 
  • 4Q earnings were particularly weak, which we believe is related to work progress for KSL City.  Earnings are currently undergoing a soft patch, and KSL needs their Klang project to make a meaningful contribution this year.
  • We were also surprised that no dividends were declared in 4Q or for FY11 as a whole.
  • Rolling over our numbers, we keep our earnings forecast and price target of RM2.16 unchanged (based on 30% discount to RNAV).  Maintain BUY.

 Source: HLIB Research 1 March 2012

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