MK Land declares 1 sen dividend for FY15
By theedgeproperty.com | March 25, 2015 5:49 PM MYT
KUALA LUMPUR (Mar 25): Property developer MK Land Holdings Bhd has declared a first interim single tier dividend of 1 sen per share for the financial year ending June 30, 2015, to reward its shareholders.
In its filing with the bourse, MK Land (fundamental: 1.6 valuation: 3) said its shares will trade ex-dividend on April 7. The dividend is payable on April 23.
In its latest quarterly results, MK Land reported a 4% fall in its net profit to RM13.22 million for the second quarter ended Dec 31, 2014 (2QFY15), from RM13.81 million a year earlier, on the back of an 18% decline in revenue to RM115.35 million, from RM140.45 million.
Meanwhile, for the first half of its financial year (6MFY15), net profit was up 8% at RM20.82 million, from RM19.27 million in 6MFY14 while revenue fell 14% to RM222.33 million, from RM259.24 million.
MK Land closed unchanged at 42 sen, with a market capitalisation of RM505.93 million.
(Note: The Edge Research' s fundamental score reflects a company&rsquo s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
MK LAND BHD Total Land Bank :
2023.4 Hectare (5000 Acre)
MK Land (BUY) - The Value Of Land
Stock Name: MKLAND
Company Name: MK LAND HOLDINGS BHD
Research House: PUBLIC BANK Price Call: BUY Target Price: 0.80
MK Land' s fall from grace was due to years of earnings disappointments and bad press from poor workmanships, LAD issues and frequent change of management. In the heydays, MK Land' s market capitalization was higher than RM4bn before it collapsed to current sub-RM400m level. However, MK Land, in our view deserves to be back on investors' radar again with its huge landbank in Damansara Perdana, earnings improvements, and stronger balance sheet post the 3-year turnaround stage announced in 2008.
&bull MK Land' s main landbank include 170 acres of undeveloped net land in Damansara Perdana and 55acres in Setiawangsa, Kuala Lumpur. On our estimates, these plots of land alone should be worth at least RM1.6bn as compared to its market cap of RM360m.
&bull Main launches target for CY2012 are new phases of its maiden landed properties, Semi-Ds in Rafflesia, which has a total 454 units or combined GDV of RM1bn (ASP RM600psf, 160 units sold so far), 2 remaining condominium blocks in Metropolitan Sq with RM200m GDV (ASP RM500psf, 444 units) and clearing the remaining inventories in Armanee Terrrace (ASP RM385psf,100units). Unbilled sales are c.RM500m.
&bull We value MK Land at RM0.80, c.50% of its RNAV estimate of RM1.56. The stock is currently trading at a steep discount even to its book value (c.61%), suggesting investors are still skeptical. We believe MK Land, the largest landowner near TTDI-LDP interchange could see its land prices increase further with the completion of more commercial projects, especially by the Empire Mammoth Group which has spent more than RM600m on land acquisition alone in Damansara Perdana.
Source: PublicInvest Research Research
MK Land Bhd
Public investResearch
TARGET PRICE : 80 SEN
MK Land delivered a decent performance in Q3FY15,
after registering a net profit of RM15.7 mil (0% year-on-
year [yoy], +18.9 quarter-on-quarter [qoq]). The earnings
were again driven by property sales from its flagship
development, Damansara Perdana, and its project in
Meru, Perak. To recap, MK Land is expected to launch a
project in Damansara Perdana this year to replenish the
waning unbilled sales, which are now at RM300 mil, due
to the lack of launches and slow sales of existing project,
ie Rafflesia. The project to be unveiled is said to have a
gross development value (GDV) in excess of RM200 mil
(average selling prices: RM700 psf).
No indication yet is given as for the timing of the
launch due to the difficult trading environment currently.
The group has also planned to unveil a 2.8ha develop-
ment in Damansara Damai and a 6.8ha development
(three phases, RM500 mil [current] GDV) in Damansara
Perdana in the near term. Maintain buy and a target
price of 80 sen. The new catalyst in our view will come
from launching more projects, especially at Damansara
Perdana to maximise returns from its prime landbank.
Thursday, 5 March 2015
PETALING JAYA: Property developer, MK Land Holdings Bhd, will launch two projects this year with a combined Gross Development Value of RM600mil, says group chief executive officer Lau Shu Chuan.
" There are still some pending approval pertaining to the projects but once we obtain them, we will launch the projects between April and June," he told reporters at the company' s Chinese New Year celebration here today.
The projects comprise serviced-apartments costing RM450,000 onwards in Damansara Damai and apartments in Damansara Perdana, priced above RM600,000 per unit.
He said these areas remained the company' s best sought-after places by discerning house purchasers, either to live in or for investment.
" This is because the areas are easy to access, therefore, we hope the project would enjoy good sales and contribute positively to our next quarter," he said.
MK Land recently reported a lower net profit of RM13.22mil for the second quarter ended Dec 31, 2014, attributable to lower revenue from its property development and leisure businesses.
Lau said the company witnessed a slowdown in its product sales even in the second half of last year as consumers had shifted their interest from high-end properties to affordable properties.
Realising this, he said MK Land would balance its product mix in order to survive in the market where 70-80% of sales came from the Klang Valley.
Lau also said MK Land was currently planning other affordable housing projects in Meru Perdana, Klebang Putra and Lembah Beriah (all in Perak), declined to elaborate. - Bernama
MK Land to develop land Damansara Perdana land with Mammothpsj
Saturday, 31 January 2015
PETALING JAYA: Saujana Triangle Sdn Bhd, a unit of MK Land Holdings Bhd, and Mammoth Empire Land Sdn Bhd have inked a deal to jointly develop a mixed development project on an 11.78-acre plot of land in Damansara Perdana here.
In a filing with Bursa Malaysia, MK Land said under the agreement, Saujana Triangle wasentitled to RM82.12mil for contributing the leasehold land - at RM160 psf - or 22% of the gross development value (GDV) of the development project, whichever shall be the higher. Mammoth Empire Land will be the developer of the project.
It said Mammoth Empire Land was expected to settle Saujana Triangle&rsquo s entitlement within a year from the date of the joint development agreement.
&ldquo The joint development will complement our plans to expedite the development of our landbank in Damansara Perdana,&rdquo MK Land said in a statement yesterday, adding that the deal also represented a strategic opportunity for the group to venture into property development with other reputable developers.
It said the joint development was also expected to contribute positively to MK Land, adding that no source of funding was required from MK Land or Saujana Triangle.
It said Mammoth Empire Land would be responsible to provide the necessary financial strength and resources to meet the development costs of the land.
