After the stock closed yesterday, KSL announced its 4th quarter EPS which is 40.76 sen and its net tangible asset (NTA) backing of Rm 3.65. Its profit increased by 230% more than last year. As a result all shareholders expected the share to shoot through the roof.

KSL is the cheapest based on PE ratio among all the top leading property developers listed on Bursa Malaysia.

KSL buys land from S P Setia for RM229mil as reported by The Star.

Friday, 24 Nov 2023. PETALING JAYA: KSL Holdings Bhd is acquiring freehold land measuring 72,820 sq m in Shah Alam, Selangor, from S P Setia Bhd for RM228.8mil. In a filing with Bursa Malaysia, KSL said the acquisition will enlarge the group’s land bank and enhance its future revenue and earnings. 

KSL has a market capitalization of Rm 1,587 million and the total number of issued shares is 1,038 shares. Its NTA is Rm 3.65 per share and the last traded share price is Rm 1.73 per share.

In 2015 KSL gave out 2 sen dividend. Since then the company has not given out any dividend.

How can shareholders benefit if the company did not give out dividend. That is why its share price remained depressed?

What can KSL do to benefit shareholders?

1 Since the company is so cash rich to buy land from S P Setia for Rm 228.8 million, the company must give out more dividend.

2 Since its NTA is Rm 3.65 per share and its share price is Rm 1.72, the best business KSL can do is to buy back its own shares. It can make more than 100% profit instantly without any risk. This is the safest and fastest way to make profit.

3 Obviously, some of the company directors are not efficient. They should be replaced.

Currently Sabah Government does not know that solar panel produces the cheapest electricity???

The milestone for solar panels producing the cheapest electricity was confirmed by the International Energy Agency (IEA) in their World Energy Outlook 2020. They reported that the world’s best solar power schemes now offer the “cheapest…electricity in history,” making solar power cheaper than coal and gas in most major countries. This was announced around October 13, 2020. The significant reduction in cost is attributed to improvements in technology and increased economies of scale as more solar panels are installed worldwide.

The chart below shows solar panel price has been dropping in the last 50 years. Moreover, the current solar panel is more efficient in capturing sunlight for conversion to electricity.

Sabah has free sunshine every day and it should take advantage of the cheap solar panel to produce the cheapest electricity to benefit all Sabah consumers by reducing electricity rate.

Approximately 42% of Malaysia’s petroleum is produced in Sabah. 

In 2023, the annual sales value of manufactured refined petroleum products in Malaysia was worth approximately Rm 224.7 billion. 42% of the Rm 224.7 billion = Rm 94.4 billion is from Sabah. Population of Sabah is 3.83 million. Rm 94.4 Billion divided by 3.83 = Rm 24.6 billion. That means each Sabahan has an annual income of Rm 24.6 billion.

Our Sabah Government should invite open competitive tenders for electricity supply by solar panels to save money. The Sabah Government must identify cheap land, mangrove swamp or jungles or lake to place solar panels.

After Sabah uses solar panels to produce supply electricity, Sabah will have an annual income of Rm94.4 billion from refined petroleum export. Each Sabahan will have an annual income of Rm 24.6 billion. 

This is why Sabah will leave Malaysia.

During my life time I saw every Prime Minister being replaced by another politician for one reason or another. Dr Mahathir managed to stay the longest time of 22 years.

I am 91 years old and I have been doing business for more than 60 years. I was a co-founder of Mudajaya, Gamuda, IJM Corporation, IGB etc.

As a businessman, I can foresee many things that politicians cannot see. Currently, I can foresee an opportunity which I can teach our Prime Minister Dato Seri Anwar Ibrahim to make Malaysia one of the richest nations in the world.

This achievement will ensure our Unity Government win in the next general election. 

Currently coal is the main source of electricity generated in Malaysia, with 76.4 terawatt-hours of electricity produced from coal. The second biggest source of electricity in the country was natural gas, with 68.4 terawatt hours of electricity produced in the same year.

That is why our electricity rate of Rm 76 for 100 kilowatt-hour which is more than double of that in China.

Why our Minister for Energy does not know that solar panel produces the cheapest electricity???

The milestone for solar panels producing the cheapest electricity was confirmed by the International Energy Agency (IEA) in their World Energy Outlook 2020. They reported that the world’s best solar power schemes now offer the “cheapest…electricity in history,” making solar power cheaper than coal and gas in most major countries. This was announced around October 13, 20201. The significant reduction in cost is attributed to improvements in technology and increased economies of scale as more solar panels are installed worldwide.

The chart below shows solar panel price has been dropping in the last 50 years. Moreover, the current solar panel is more efficient in capturing sunlight for conversion to electricity.

Malaysia has free sunshine every day and it should take advantage of the cheap solar panel to produce the cheapest electricity to benefit all Malaysian consumers by reducing electricity rate.

Our Prime Minister Anwar should invite many open competitive tenders for each state for electricity supply by solar panels to save money. Each state must identify cheap land, mangrove swamp or jungles or lake to place solar panels.

Malaysia is the second–largest oil and natural gas producer in Southeast Asia and is the fifth–largest exporter of liquefied natural gas (LNG) in the world, as of 2019. It is strategically located on important routes for seaborne energy trade.

In 2023, the annual sales value of manufactured refined petroleum products in Malaysia was worth approximately 224.7 billion Malaysian ringgit.

After Malaysia uses solar panels to produce supply electricity, Malaysia can save more than Rm 224.7 billion annually from refined petroleum export. In addition, Malaysia can save money from using solar panels to produce the cheapest electricity; instead of using coal and petroleum which Malaysia are currently using.

All these savings will make Malaysia to be one the richest countries in the world and should be classified as a Developed Nation.

Koon Yew Yin, 4th March 2024

All property developers have just announced their annual profit for 2023. All of them reported increased profit.

Why property prices are going up?

One key reason for the high property prices is the escalating cost of construction materials. The rising prices of raw materials such as steel, cement, and timber have significantly impacted construction expenses. As developers face growing bills, these costs are inevitably passed on to buyers, leading to higher property prices.

Additionally, rising inflation has contributed to the high property prices. With inflation going up, property developers face higher construction costs, which ultimately leave buyers with higher property prices. This is coupled with a rising interest rate environment. During the pandemic in 2020, the overnight policy rate (OPR) in Malaysia dropped to a record low of 1.75 per cent. However, Bank Negara Malaysia raised the OPR by 25 basis points to 3.00 per cent on May 3, 2023. As borrowing becomes more expensive, construction costs and property prices inevitably increase in tandem.

Furthermore, development in infrastructure, particularly transportation networks, has also led to property appreciation. As Malaysia continues to expand its Mass Rapid Transit (MRT) network, more residential areas are connected to key areas such as business districts and educational institutions. Improved accessibility and connectivity raise the appeal and value of properties located near these new MRT stations.

In summary, the combination of rising construction costs, inflation, and improved infrastructure connectivity has contributed to the high property prices in Malaysia.

The list below is the comparison of the top 10 property developers in Malaysia based on their Earning Per Share (EPS) for the latest 4 quarters.

KSL announced its total 4 quarter EPS of 40.76 sen and its net tangible asset (NTA) backing of Rm 3.65. Its profit increased by 230% more than last year. KSL is the cheapest in term of 3.1 PE ratio. ECO World is the most expensive selling at 68 PE ratio.

KSL Holdings Bhd is a holding company. It is engaged in real estate services. The company has four reportable segments Property development; Property investment; Investment holding and Car park operation. Property development includes the development of residential and commercial properties; Property investment includes an investment of real properties and hotel; Investment holding includes the provision of management services to the subsidiaries, and Car park operation includes car park management services. KSL derives most of its revenue from Property development. For example:

The KSL Esplanade Mall in Klang, Malaysia, spans an impressive 650,000 square feet. It features four floors of retail space, making it a substantial shopping center. Additionally, the mall includes a landscaped park, an event space of up to 10,000 square feet, an outdoor dining terrace, and a children’s playground. Operated by KSL City Management Sdn Bhd, this mall aims to be more than just a shopping destination, offering a variety of experiences for visitors. It’s definitely a significant addition to Klang’s retail scene!

Koon yew yin, 2nd March 2024

Although my writing of this article sounds boastful but I feel that it is important to keep this record for posterity.

Engineers play a pivotal role in shaping our modern world. Their contributions are vast and impactful. Let’s explore some of the key ways engineers have made a difference:

1. Protection and Wise Use of Natural Resources:
   1. Engineers are at the forefront of ensuring the protection and sustainable use of our planet’s natural resources.
   2. They work tirelessly to apply science and mathematics to address environmental challenges.
   3. Coastal restoration, habitat preservation, and community resilience are just a few areas where engineers make a difference.
2. Advancements in Aircraft Technology:
   1. Engineers continuously improve aircraft design, making them faster, safer, quieter, and more environmentally friendly.
   2. Recent innovations include sustainable energy sources, such as solar-powered wings and hydrogen-based propulsion systems.
3. Smartphones and Mobile Technology:
   1. Your smartphone’s capabilities owe much to engineers.
   2. They enhance screen size, resolution, processing speed, memory, and refresh rates.
   3. Future smartphones may be foldable, modular, and seamlessly integrated with ambient computing.
4. Infrastructure Development:
   1. Engineers build critical infrastructure, including roads, bridges, water supply systems, and communication networks.
   2. Their work ensures connectivity, safety, and economic growth.
5. Healthcare Innovations:
   1. Biomedical engineers create medical devices, prosthetics, and diagnostic tools.
   2. They contribute to advancements in healthcare, improving patient outcomes and quality of life.
   3. Energy Solutions: Engineers develop renewable energy sources, efficient power grids, and sustainable technologies.
   4. Their work addresses global energy challenges and reduces dependence on fossil fuels.
6. Environmental Remediation:
   1. Environmental engineers tackle pollution, waste management, and remediation.
   2. They strive to restore ecosystems and protect human health.
7. Space Exploration and Beyond:
   1. Aerospace engineers design rockets, satellites, and space probes.
   2. Their contributions extend humanity’s reach beyond Earth.

In summary, engineers shape our lives, making them more convenient, practical, and safe. Their work touches every aspect of our existence, from the devices we use to the infrastructure that supports our societies.

I came from a poor family of 12 children. Fortunately, in 1953, I was quite clever to get a Government scholarship to study civil engineering in the Kuala Lumpur Technical College which is currently known as University of Technology Malaysia (UTM). In 1953 Malaya was still under the British Government. All the engineers were qualified in UK. My 4 years diploma course was not recognized as an engineer. I had to work and study to pass 2 exams to qualify as Engineer and had to work 3 more years to pass another exam to become a Chartered Engineer. I took 7 years to qualify as a Chartered Civil Engineer.

At that time there were very few Chartered Civil Engineers in Malaysia. I was appointed an examiner. I examined and passed the former Chief Engineer of Ipoh City Hall.

During that period, Tan Sri Yeoh Tiong Lay was the President and Iwas the Secretary of the Master Builders Association for 9 years.

Representing the Construction industry, I was appointed a member of the Board of Engineers of Malaysia for a maximum period of 5 years as permitted by law.

The Chairman of the Board members was the Director General of JKR which was and is the biggest employer of Engineers in Malaya. Another 2 Board members were representing the Universities and Architects Association.

I was Chairman of the Engineering Practice Committee to regulate engineering consultant practice. I settled an interesting dispute between a property developer and an Engineering consultant. The Developer wanted to engage another Consultant Engineer without fully settle the agreed fee before making a new consultant.

Member of SIRIM: Malaysian Standards for Cement and Concrete: At that time under the British rule, Malaysia did not have our own  standards for Cement and Concreate. I was appointed a member in SIRIM to draft our Standards for Cement and Concrete.

SIRIM Berhad, formerly known as the Standard and Industrial Research Institute of Malaysia (SIRIM), is a corporate organization owned wholly by the Malaysian Government, under the Ministry of Trade.

My contribution as an engineer working for PWD or JKR before Merdeka 1957. My old college mate Ng Eng Hean designed Stadium Merdeka where our first Prime Minister Tungku Abdul Raham declared Merdeka.

Ng Eng Hean designed and I was the construction supervising engineer for the National Indoor Stadium. This photo shows our first Prime Minister Tungku Abdul Raham with Deputy Razak at the opening ceremony.

The photo below shows that Ng Eng Hean and I together with others shaking hands with Malaya’s first Agong, the Raja of Perlis at the opening ceremony of the National Indoor Stadium.

About 8 years ago when Lim Guan Eng was the chief minister of Penang he visited me with an offer of Dato Sri. I politely declined.

I am 91 years old. I am a co-founder of Mudajaya, Gamuda, IJM Corporation and many other listed and not listed companies in Malaysia. My sole intention for writing this advice is to help KSL improve its management to benefit all its shareholder.

After the stock closed yesterday, KSL announced its 4th quarter EPS which is 40.76 sen and its net tangible asset (NTA) backing of Rm 3.65. Its profit increased by 230% more than last year. As a result all shareholders expected the share to shoot through the roof.

Unfortunately, it remained unchanged at Rm1.53 per share. In fact, it dropped 4 sen on 28th Feb 2024, 2 days ago.

KSL is the cheapest in terms of PE ratio among all the top leading property developers listed on Bursa Malaysia.

KSL buys land from S P Setia for RM229mil as reported by The Star.

Friday, 24 Nov 2023. PETALING JAYA: KSL Holdings Bhd is acquiring freehold land measuring 72,820 sq m in Shah Alam, Selangor, from S P Setia Bhd for RM228.8mil. In a filing with Bursa Malaysia, KSL said the acquisition will enlarge the group’s land bank and enhance its future revenue and earnings.

KSL has a market capitalization of Rm 1,587 million and the total number of issued shares is 1,038 shares. Its NTA is Rm 3.65 per share and the last traded share price is Rm 1.53 per share.

In 2015 KSL gave out 2 sen dividend. Since then the company has not given out any dividend.

How can shareholders benefit if the company did not give out dividend and its share price remained depressed?

What can KSL do to benefit shareholders?

1 Since the company is so cash rich to buy land from S P Setia for Rm 228.8 million, the company must give out more dividend.

2 Since its NTA is Rm 3.65 per share and its share price is Rm 1.53, the best business KSL can do is to buy back its own shares. It can make more than 100% profit instantly without any risk. This is the safest and fastest way to make profit.

3 Obviously, some of the company directors are not efficient. They should be replaced.

I hope all the shareholders will read this article so that they can attend the coming annual general meeting to vote out those directors who are seeking re-appointment.