Keck Seng (M) Bhd

Keck Seng gained 16 sens (+2.9%) today to close at Rm 5.66.

I have been monitoring and also moving in and out of Keck Seng for quite some times.

From its long-term wave counts, Keck Seng is forming its major wave 3 at the moment. The major wave 3 started in December 2012 from around Rm3.80 level, after Hwang DBS came out with an article on the company.

Click 'Keck Seng' for the article.

It is an asset-rich conglomerate with activities covering plantation, property development and investment, Hotels and Golf Resorts operation  and other investment. It has assets and operations in Malaysia, Singapore, Hong Kong, Canada and United States.

Its half-year earning is about 19 sens per share. Net assets per share is Rm5.25, which is grossly understated. Its borrowing is only Rm 6 million. Its cash and short term investment stand at Rm 887 million, Investment in properties and securities is Rm 567 million. The total is close to Rm 4.03 per shares.

In its 2012 Annual Reports, it valued its 8,163 acres of oil palm plantation near Johor Bahru ( 10km east of Ulu Tiram) at 10 sens psf.  In 2005 the Government acquired some of its land at about Rm 6 psf. for road construction. The land must be more than Rm 6 psf by now. Even if I used Rm 6 psf. for 8,163 acres, the value is Rm 2.13 billion or Rm5.91 a share

 

Its property development project at Bandar baru Kangkar Pulai, Tg. Putri and Taman Daya with a total land area of 1320 acres has a book value of about Rm 94 million or Rm 1.63 psf. Again if I were to use a valuation of Rm 6 psf. I get another Rm 344 million or Rm 0.96 a share.

 

From its 2-year chart, Keck Seng is forming the wave (v) of its major wave 3. 

The only problem with Keck Seng is that it tends to sleep once a while, can be quite boring with low volume and negligible price movement.

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