Hot Stock! KEN Holdings Gains 5% on Positive Outlook | October 31, 2014

By Gho Chee Yuan

KUALA LUMPUR (Oct 31): Ken Holdings Bhd ( Financial Dashboard) saw its share price rise as much as 8% on the news that The Edge Research said it was a highly profitable developers in “green” properties, which are affordably priced in well located areas.

As of 11.35am, the stock was trading at RM1.05, up 5 sen or 5% albeit thin trading volume of 24,500. The counter was trading between RM1.02 and RM1.08 today

Ken Holdings is the Insider Asia’s stock pick of the day on The Edge

In a report today, The Edge Research said Ken Holdings is a highly profitable developer that has carved out a reputation for building environmentally friendly “green” properties, which are affordably priced in well-located areas.

“The company also has one of the highest margins among developers, with pre-tax margins of above 36% for the last five years,” The Edge research said.

The report noted that Ken Holdings’s sales between 2009 and 2013 has increased from RM31.2 million to RM55.8 million while pre-tax profit rose from RM11.9 million to RM20.9 million.

According to the report, Ken’s major ongoing projects is the RM1.03 billion Ken Rimba township in Shah Alam, where the company is currently completing double-storey terrace houses, and is launching condominiums.

“For future, it is planning a mixed development in Johor Bahru that has an estimated gross development value (GDV) of RM1.22 billion which sits on a 22.8 acres land that the company acquired in 2012 for RM56.2 million,” it said.

The land is located 2.5km from Customs, Immigration and Quarantine Complex (CIQ) in Johor Bahru.

Apart from that, the company also has a 19.4 acres land in Genting, 10 acres in Malacca City Centre and 2.5 acres in Batu Ferringhi, Penang.

In addition to that, Ken Holdings expects recurring income of RM15 million per year starting 2015 from the Ken TTDI, a 13 storey office tower in Taman Tun Dr. Ismail here.

“The company has net cash of RM6.1 million as at end of June, 2014. Its share price are trading at a reasonable price to earnings ratio of 7.7 times and price to book value of 0.97 times with a 2.2% dividend yield,” The Edge Research said.