KSL dropped 16 sens or 6.8% to close at Rm 2.19 on Friday before the announcement of its 4th quarter result.
Subsequently after the market closed, KSL announced a 4th quarter earning of Rm127.8 million or a quarterly earning of 24.85 sens per share based on weighted average number of share of 522 millions. It also announced a total earning of 80.65 sens a share for 2014.
However, if we divide the net profit Rm 127.8 m by its current total number of share of about 780 million after the 1 for 1 bonus issue, quarterly earning per share is 16.38 sens. Together with its first 3 quarter earning of 27.22 sens (after bonus issue adjustment), its earning for 2014 is only 43.6 sens a share, which is still very good, then why the sharp drop ?
If we refer to its explanatory notes to the financial result we can see that there is an one-off item of Rm 88.2 million from 'fair value adjustment of investment properties' in its 4th quarter earning. Without this one-off item its earning should be about 8 sens a share.
If we look at its revenue generated from its normal business operation from 1st to 4th quarter, the figures are Rm 207 million, Rm 220 million. Rm 206 million and Rm 166 million respectively. Its current quarter of Rm 166 million is 21.3% less than its first 3 quarters average of Rm 211 million. I think that is the reason for 16 sens drop on Friday.
Purely on chart, it is possible that its sub-wave iii has ended.
It is also possible that the current pullback is a mini-wave 1, if it can move up again next week but I think is unlikely.
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