Bought more Kfima at a price of RM0.92 after disposing Genting at RM7.27 the other day. This purchase happen when i manage to salvage some extra money out of the disposal of Genting. I believe there will be more upside for Kfima especially when time draw nearer for its 5sen dividend around August or so. This definitely serve as an attractive catalyst beside the good earnings that they have garner so far.
Low valuation is where making Kfima attractive, with EPS of 22.32sen with just price at RM0.95 currently is some how quite safe to buy in. Of course many good financial figures recently should somehow justified that Kfima would at least trading at PE of 5 and above. I maintain my target price of RM1.10 in short term of 3 months time. We will just have to wait patiently and accumulate more if it dip and we are playing around dividend time which i think is a safe heaven period to buy as the dividend of 5% or more is good enough to serve as a cushion after all.
Again, this of course does not represent a buy call from me. Buy at your own risk.
10 comments:
horse, you seem to like Kfima very much, just like I do. I cannot help liking this counter. Considering the following 1-year and 5-year growth of Kfima in:
Revenue: 11% and 8%
Earnings: 28% and 14%
Operating cash flows: 109% and 36%
Its Return of Invested capital: 23%
ROE: 15% and improving
At 95 sen, it is selling at:
PER: 4.3
Price-to-sale: 0.7 < 1
Price-to-book: 0.6
Price-to-operating cash flow: 2.1
However, a discount cash flow analysis with reasonable assumptions will easily give a fair price of RM 2.60. Give generous margin of safety of 50% will still give a value of RM1.30, a 37% upside.
Hopefully Mr Market will discover its potential and we can make some money, hopefully. Good luck.
exactly kc, it is just a matter of time for Kfima to realise it true value. THe coming Q result is equally important other than the 5sen dividend, as this will somehow signify the sustainability of Kfima's earnings. I still believe at such earning level trading at 5 and above is not too much to ask for, so for Kfima to go up to RM1 is just any time soon. :)
Lets hope the market will react positively toward this.
Update portfolio + Ultramargin line
1. Kfima 88% (cost: 94.5sen)
2. AZRB 44.5% (cost 78sen)
3. MBF 42% (cost 70sen)
4. PJ devel 41.2% (cost 72sen)
5. CYL 11.2% (cost 53sen)
6. OKA 7.2% (cost 58.8sen)
Second portfolio + Margin line
1. MBF holding 38.5% (cost 68.5sen)
2. AZRB 25% (cost 77sen)
3. Chuan 16.2% (cost 60.5sen)
4. Bolton 11.1% (cost 70sen)
5. PJ deve 10% (cost 71.5sen)
5. Encorp 9.4% (cost: 1.01)
BJtoto finally declares 8sen div. :)
hng, start disposing Kfima ? saw yr % reduce.
horse
As trader, time is essence, i need to trade often and realize gain; boost capital and compound again for next trade.
I've realize all kfima paper profit on second portfolio at cost 92sen; sold off at 97sen and also reduce some stake on first portfolio at cost 94.5sen; sold also at about 97sen. As previously point out, i'll sell some kfima stake on strength, and buy back later if on weakness again.
I've channel some of the margin to increase stake of PJ development, bought at 71-71.5sen to further average down holding cost and try to reverse paper loss to paper gain. AT current level. all stock in both portfolio are in paper profit already except Chuan, which will be my next target to do so :D)
hng..
wat's ur say on PJ dev? any reason behind this? mart lately been going up and up.. not sure will this be sustainable... just a bit doubt
Urban
The main criteria to pick PJ development are of its undemanding valuation, PE < 7x; price/asset <0.4x; yield >5%.
Another + factors are anti-dilution warrant which is going to expire very soon, get rid of earning dilution effect. PJ development also planning to list its cable division and all property are progressing well e.g. Swiss Residence, higher progress billing is expected in its final quarter result.
Update portfolio + Ultramargin line
1. Kfima 88% (cost: 94.5sen)
2. MBF 42% (cost 70sen)
3. PJ devel 41.2% (cost 72sen)
4. AZRB 24.6% (cost 78sen)
5. CYL 16.4% (cost 53.5sen)
6. OKA 7.2% (cost 58.8sen)
Second portfolio + Margin line
1. MBF holding 51.3% (cost 70sen)
2. AZRB 25% (cost 77sen)
3. Chuan 16.2% (cost 60.5sen)
4. Bolton 11.1% (cost 70sen)
5. PJ deve 10% (cost 71.5sen)
5. Encorp 5% (cost: 1.01)
hi hng..
thanks for the explanation. will do further study on this. recently looking for room to collect some nice counters for the next wave..
Update portfolio + Ultramargin line
1. Kfima 76.8% (cost: 94.5sen)
2. MBF 55.9% (cost 71sen)
3. PJ devel 41.2% (cost 72sen)
4. CYL 20.5% (cost 53.5sen)
5. AZRB 10.6% (cost 78sen)
6. OKA 7.2% (cost 58.8sen)
Second portfolio + Margin line
1. MBF holding 60.1% (cost 71sen)
2. Qcapital 42.6% (cost 1.01)
2. AZRB 25% (cost 77sen)
3. Chuan 16.2% (cost 60.5sen)
4. Bolton 11.1% (cost 70sen)
5. PJ deve 10% (cost 71.5sen)
5. Encorp 4% (cost: 1.01)
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