Friday, December 27, 2013

King Wan -10.5% Yield Sustainable (DMG)

King Wan Corp
Target Price: SGD0.43
Price: SGD0.29
10.5% Yield Sustainable

KWAN is the largest mechanical & electrical (M&E) player in Singapore with an orderbook stretching to CY16. It pays a core 5.3% yield, with KTIS potentially listing in Feb 2014. This will allow the company to double as well as maintain its dividend going forward. Management has shown investment acumen and willingness to pay dividends. Maintain BUY, with SGD0.43 TP, based on 7% yield.


¨ Largest M&E player in Singapore with strong core outlook. KWAN is Singapore’s largest M&E operator, with a healthy mix of public and private sector projects. Its investments in property and ship chartering are likely to provide strong non-core returns.

¨ Core dividend secured by large orderbook. KWAN declared a 0.5 cent interim dividend for 2Q14. We continue to expect a 1 cent core final dividend for 4Q14. Its total 1.5-cent dividend requires recurring earnings of only SGD5.2m, which KWAN will comfortably exceed in FY14, bolstered by its SGD147m-strong orderbook stretching up to CY16.

¨ Shareholders being paid 5.3% to wait. The stock’s core yield is 5.3%, which we see as sufficient incentive for shareholders to stick with KWAN while waiting for the listing of Kaset Thai Industry Sugar (KTIS).

¨ KTIS listing to unlock value and open door to 1.5-cent special dividend. In view of the political turmoil in Thailand, we see KTIS being listed around the auspicious Chinese New Year period in CY14. This will coincide with KWAN’s 4QFY14, during which we expect the company to liquidate much of its stake in KTIS and return part of the cash in the form of a 1.5-cent special dividend. This will boost the stock’s yield to 10.5%.

¨ Maintain BUY with SGD0.43 TP. KWAN is a well-run company that dominates Singapore’s M&E space. Its earnings are well supported by its core business, as well as its non-core associates. Management has investment acumen and shows a willingness to distribute dividends. Our unchanged SGD0.43 TP is based on a 7% dividend yield, which includes the upcoming special dividend. Maintain BUY.




Source/Extract/Excerpts/来源/转贴/摘录: DMG-Research,
Publish date: 23/12/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock