Affin IB Research maintains Buy on KSL, target price RM3.05

Affin IB Research maintains Buy on KSL, target price RM3.05
Business & Markets 2013
Written by theedgemalaysia.com
Thursday, 29 August 2013 08:42

KUALA LUMPUR (Aug 29): Affin IB Research has maintained its Buy rating on KSL Holdings Bhd at RM1.93 and target price RM3.056 and said KSL reported a record 1H13 core net profit of RM114.5 million (+128% y-o-y) driven by better earnings from both its property development and property investment divisions.

In a note Thursday, the research house said KSL’s 1H13 revenue grew by 121% y-o-y driven by higher contributions from property development (+127% y-o-y), property investment (+13% y-o-y) and KSL Resort Hotel (+RM24 million y-o-y) that started operations in 2Q12.

“Overall, KSL’s 1H13 core net profit is above both market and our expectations, accounting for 75-77% of consensus and our full year earnings forecast,” it said.

Affin Research said that sequentially, KSL’s 2Q13 core net profit grew by 39.3% to RM66.7 million on higher property development earnings.

“We are raising our FY13 EPS forecast by 16.8% to account for the stronger-than-expected 1H13 earnings arising from the bumper contribution from its Johor projects.

“No change to our FY14-15 EPS forecast. Maintain Buy with an unchanged target price of RM3.05 based on a 30% discount to our RNAV estimate,” it said.