Kim Lun Corporation Bhd (-ve)

SHARES of Kimlun (Fundamental: 1/3, Valuation: 1.8/3) remained unchanged at RM1.30 yesterday with 544,300 shares changing hands. It was featured in The Edge Malaysia weekly dated June 15.

Johor-based Kimlun, a well-established building contractor and concrete products supplier, is seen as a cheaper proxy to major infrastructure projects in Iskandar Malaysia as well as Mass Rapid Transit (MRT) developments in Malaysia and Singapore.

For 1Q2015, core net profit grew 72% y-o-y to RM14.1 million — excluding one-off gain on land disposal in 1Q2014 — boosted by higher construction work progress and sales of higher margin products to Singapore. Current order book stands at RM1.24 billion — RM1.01 billion for construction and RM0.23 billion for manufacturing. Also, it has an unbilled sales of RM73 million from property development.

The stock trades at a trailing 12-month P/E of 9.8 times and 0.94 times book. The company proposed a final dividend of 3.8 sen (ex-entitlement on July 21), giving a net yield of 2.9%.

This article first appeared in The Edge Financial Daily, on June 16, 2015.