Tuesday, May 21, 2024

KTI LANDMARK BERHAD

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***Important***Blogger is not wrote any recommendation & suggestion. All is personal
opinion and reader should take their own risk in investment decision.


Open to apply: 21 May 2024
Close to apply: 04 Jun 2024
Balloting: 07 Jun 2024
Listing date: 19 Jun 2024

Share Capital 
Market cap: RM240 mil
Total Shares: 800 mil shares
First day tradable shares: 205mil shares

Industry CARG
Value of property transactions in Sabah, 2018 – 2023: 5.59%
Volume of property transactions in Sabah, 2018 – 2023: 3.18%
Overhang residential properties 2018 – 2023: 8.47%
Overhang shops 2018 – 2023: 8.21%
Industry competitors comparison (PBT%)
1. KTI Landmark: 14.40% 
2. Hapseng: 18.71% (PE14.09)
3. SBCcorp: 1.57% (nett PE, losses))
4. WMG: losses 
5. IJM land Berhad: 10.65% (PE28.58)
6. Hohup Group: losses 
7. Asiapac: 6.31% (PE42.39)
8. Others: 6.59% to 21.19%  

Business (FYE 2023)
Property developer, principally involved in the provision of design and build construction services and property development. 

Fundamental
1.Market: Ace Market
2.Price: RM0.30
3.Forecast P/E: 17.65 (FYE2023, EPS RM0.017)
4.ROE(Pro Forma III): 8.34% 
5.ROE: 10.12%(FYE2023), 7.6%(FYE2022), 12.27%(FYE2021), 11.28%(FYE2020)
6.Net asset: 0.20
7.Total debt to current asset: 0.697  (Debt: 218.920mil, Non-Current Asset: 70.527mil, Current asset: 314.200mil)
8.Dividend policy: no formal dividend policy.
9. Shariah status: -

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FYE 31Dec): RM120.167 mil (Eps: 0.017), PAT: 11.5%
2022 (FYE 31Dec): RM112.880 mil (Eps: 0.013), PAT: 9.3%
2021 (FYE 31Dec): RM98.518 mil (Eps: 0.020), PAT: 15.9%
2020 (FYE 31Dec): RM90.193 mil (Eps: 0.016), PAT: 14.0%

Major customer (2023) 
Nature of business didn’t have single large major customer. 

Major Sharesholders 
1. Chin Mee Leen : 60.7% (direct)
2. Loke Theen Fatt: 13.7%% (direct)

Directors & Key Management Remuneration for FYE2024
(from Revenue & other income 2023)
Total director remuneration: RM2.883 mil
key management remuneration: RM1.05 mil – RM1.20 mil
total (max): RM4.083 mil or 11.47%

Use of funds 
1. Acquisition of land for development: 37.5%
2. Upgrading existing / expansion of our casting yard / IBS facility for our building division: 4.5%
3. Upgrading software and systems: 0.7%
4. Working capital for project development: 43.1%
5. Repayment of bank borrowings: 6.3%
6. Estimated listing expenses: 7.9%
Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall that is possible is an overvalued IPO. 

*Valuation is only personal opinion & view. Perception & forecast will change if any new quarter result release. Reader take their own risk & should do own homework to follow up every quarter result to adjust forecast of fundamental value of the company.