$KSENG

Sharing from remisier.

*KSENG (3476-RM6.02-Marketcap RM2.18bn)-Main market, Industrial Products & Services-Diversified Industrials*

*Profile* KSENG (Direct interest: ~49% owned by Ho Kian Guan & family from Singapore) is an asset-rich conglomerate focusing on: i) upstream plantation, ii) property development and investment, iii) hotel and property investment, and iv) plantation-related manufacturing business.

*Significantly undervalued land bank in Johor*. The company has very huge landbanks in Johor, including plantation lands. They have approximately 8000 acres of lands in Ulu Tiram (near Pasir Gudang), making it one of the largest landowners in Johor, ahead of UEMS. These landbanks have not been revalued for the past 40+ years (based on book values 1980/1987). Robust development in Iskandar Malaysia with the upcoming catalytic projects such as Data centres, RTS, SFZ and the SEZ are set to further propel KSENG’s land price appreciation (which are suitable for residential, industrial and commercial developments).

*Undemanding valuation* The stock is currently trading at trailing 8x P/E (ex-cash 3x P/E) and 0.78x P/B, supported by robust FY23 netcash & securities/share of RM4.23sen. We recommend that this is an opportune time to accumulate to ride on the catalyst as the market has yet to appreciate its full potential.

Recent land sale from Crescendo highlighted land value in Pulai, Johor. The land sale implies a value of ~RM5m per acre. KSeng lands should have value closer to Crescendo land sale. Using conservative RM2m per acre multiplied by 2500 acres (assuming for industrial lands development), will imply a value of RM5bn (current market cap RM2.18bn)!

*Technical view* After rallying 26% YTD, the stocks is trending sideways with strong base near 5.65-5.85 zones. A successful breakout above immediate hurdles at 6.20-6.45 could spur greater upside towards 7.00 zones

✅Current price: RM6.02
✅Entry: RM5.65-5.85-6.00
✅Resistance: RM6.20-6.45-7.00
✅Cut loss: RM5.45
✅Risk profile: *Low*

$KSENG / 3476 (KECK SENG (MALAYSIA) BERHAD)