Keck Seng (Malaysia) Berhad

MONTHLY PRODUCTION FIGURES (MINING / PLANTATION / TIMBER)

$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)

$KSENG / 3476 (KECK SENG (MALAYSIA) BERHAD): An Understated Company with High-Value Assets

KSENG is a Malaysia-based company primarily engaged in palm oil cultivation and manufacturing. Additionally, it is involved in property development, investment, and ownership of hotels and resorts. The company generates stable income every quarter, except during the pandemic when it suffered losses. KSENG is known for its conservative approach, with minimal corporate exercises despite having a net cash position of RM1.11 billion according to its FY23 annual report. The dividend yield is also low at just 2.49%, which has led to a lack of investor interest. However, this could present an opportunity for value investors.

According to the FY23 annual report, besides the RM1.11 billion in net cash (about RM3.06 per share), KSENG has significant property holdings, particularly in Johor. The land in Johor has appreciated considerably due to developments like JS-SEZ and data centers. KSENG owns approximately 8,000 acres of land in Johor, with the carrying value mostly recorded in the 1980s. The company’s NTA is around RM7.77, but the actual value is likely higher as there has been no land revaluation for decades. Additionally, KSENG owns properties in KL and hotels in the US and Canada, which also haven't been revalued. Thus, the company’s net asset value is likely far above the stated NTA. Based on estimates, the Johor land alone could bring billions of ringgit in returns to KSENG over the next decades. The final question is how management plans to reward shareholders?

MONTHLY PRODUCTION FIGURES (MINING / PLANTATION / TIMBER)

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

General Meetings: Outcome of Meeting

$KSENG / 3476 (KECK SENG (MALAYSIA) BERHAD) has meletup, but it has quite a low float/liquidity I think, hence easy to run.

MONTHLY PRODUCTION FIGURES (MINING / PLANTATION / TIMBER)

Annual Report & CG Report - 2023

Statement to Shareholders in relation to the Proposed Renewal of Shareholders' Mandate for Share Buy-Back

General Meetings: Notice of Meeting

MONTHLY PRODUCTION FIGURES (MINING / PLANTATION / TIMBER)

DISCLOSURE ON QUARTERLY PRODUCTION

KSENG - Notice of Book Closure

OTHERSKeck Seng (Malaysia) Berhad (the "Company") - Proposed Renewal of Shareholders' Mandate for Share Buy-Back

Final Dividend

Special Dividend

Good spot on $KSENG / 3476 (KECK SENG (MALAYSIA) BERHAD)

They have 3 business pillars, and quite a number of tailwinds for them:
1. Integrated player with oil palm plantations, mill, refinery and manufacturing operations based in Johor, Malaysia. (CPO price increase should benefit them, as this is actually their main revenue driver)
2. Property developer focusing in Johor, Malaysia
3. They also own hotels in North America and operate a golf resort in Malaysia.

Attaching a snapshot of their financial position taken from their FY2022 AR

MONTHLY PRODUCTION FIGURES (MINING / PLANTATION / TIMBER)

Quarterly rpt on consolidated results for the financial period ended 31/12/2023

MONTHLY PRODUCTION FIGURES (MINING / PLANTATION / TIMBER)

MONTHLY PRODUCTION FIGURES (MINING / PLANTATION / TIMBER)

DISCLOSURE ON QUARTERLY PRODUCTION

Changes in Director's Interest (Section 219 of CA 2016) - MR HO CHUNG KAIN (HE CHONGJING)

Change of Company Secretary - FONG SOK YEE

Change of Company Secretary - KUAN HUI FANG

Change in Boardroom - MR HO CHUNG KAIN (HE CHONGJING)

Quarterly rpt on consolidated results for the financial period ended 30/09/2023

WINDING UP / RECEIVER & MANAGER / RESTRAINING ORDER / SPECIAL ADMINISTRATORKECK SENG (MALAYSIA) BERHAD ("KSM" OR "THE COMPANY")
- CREDITORS' VOLUNTARY WINDING UP OF TANJONG PUTERI GOLF RESORT BERHAD - UPDATE

DISCLOSURE ON QUARTERLY PRODUCTION