News by Kenanga Research

In terms of sales, Matrix has performed exceptionally well, recording total sales of RM612 million for 9MFY15, which accounted for 98% of our total estimates of RM625 million.

The land is located at the Western Suburbs of Pretoria, which is in close proximity to the Lansaria Airport and just north of the N14 Highway. It takes about 20 minutes’ drive from Blue Valley Golf & Country Estate via the R562 or R55 roads.

The scope of works, such as earthworks, sewerage reticulation and sewerage treatment plant is for site preparation for the development of Kwasa Damansara township in Sungai Buloh, Selangor, which will span over 52 weeks and is expected to be completed by October 2017.

10MFY15 sales were at RM2.37 billion which are within expectations, accounting for 79% of both our and management’s FY15 target of RM3 billion. Major drivers are from Klang Valley projects, consisting 57% of sales such as Eco Majestic and Eco Sanctuary.

KSL remains an “outperform” albeit the lowered TP as its dividend yield for FY16E remains attractive at 7.7% vs its peers’ average of 5.9%. At our current TP, it implies a 77% discount to its RNAV of RM7.07.

The construction segment contributed 74% of the group’s Ebit in 1HFY15, which grew by 110.7% to RM39.7 million

We were surprised by the termination of the proposed land acquisition, as this was part of Hua Yang’s landbank replenishment target in the Klang Valley