KSL (BUY) - A Transition Year

Stock Name: KSL
Company Name: KSL HOLDINGS BHD

Research House: HLG

Price Call: BUY

Target Price: 2.16

KSL (BUY)

A Transition Year

• FY11 core net profitrose 48% yoy to RM87.9m, making up 94.5% of HLIB's full-year estimates. 
• 4Q earnings wereparticularly weak, which we believe is related to work progress for KSL City. Earnings are currently undergoing a soft patch, and KSL needs their Klangproject to make a meaningful contribution this year.
• We were alsosurprised that no dividends were declared in 4Q or for FY11 as a whole.
• Rolling over ournumbers, we keep our earnings forecast and price target of RM2.16 unchanged(based on 30% discount to RNAV).  Maintain BUY.

 Source: HLIB Research 1 March 2012