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That makes sense so this confirms that we can expect another dividend from KTIS for this reporting year
My expectations are that KWC M&E business will be stable tho nothing exceptional to expect from it anytime soon: they regularly win new M&E contracts mostly with HDB and they seem to be able to maintain a decent profit margin on their M&E business despite the tight current labor cost environment.
Meanwhile KTIS will provide hopefully good recurrent dividends. Their 20% stake in a dormitory will be exciting times that should provide additional CF (and dividends for us?) when it starts operations in 2016.

(12-08-2014, 10:14 AM)ethys Wrote: [ -> ]that's what I like about King Wan they're pretty conservative...
Having said that they categorized their KTIS share as 'available for sale' so this means they will need to post a profit or loss every quarter based on the market value of KTIS at the end of the reporting period so this means more gain from their KTIS share will be posted in the next quarter should its share price remain above 10 THB.
Also you mentioned that 4 x KTIS EPS x 50% payout, we might be looking at just about 0.5cts. How did you compute 0.5c?
By paying 30cts THB it's already 0.38cts SGD dividend per KWC share so if KTIS pays another dividend this year yep I think KWC should be able to pay now a 1c div in Dec (vs 0.5cts in 2013) which I agree would be lower than some people expectations but at least this would be more sustainable since this will not require KWC selling any of their KTIS share. Overall quite happy with their Q1 results, a bit above my expectations especially their CF from operations

Just want to point out that the KTIS dividend is for the period ending Dec 2013
So it's unlikely there'll be another div payout unless KTIS has an interim div in FY2014Q2.
Otherwise the next div payout will be next year, after 2014Q4

Also, I noticed that miss Chua eng eng is a director on the board of Ktis
It's unlikely the entire stake will be divested anytime soon unless valuations are irresistable

Skywoods project sales up to July 2014 :
Unit launched : 420
Unit sold : 116 (27.6%)
Unit unsold : 304 (72.4%)

3 Months ago, I posted below. 3 months later, share price of KTIS hit 11.70 Baht.

Khon Kaen Sugar Industry (KSL) 13.80 Baht (drop 0.20 Baht)

Khonburi Sugar (KBS) 11.50 Baht (up 1.30 Baht)

KTIS 11.70 Baht (up 1.30 Baht)

KSL share price - KTIS share price = 2.10 Baht.

In another 3 months, difference in share price < 1.5 Baht might be possible.

(14-05-2014, 09:58 PM)BestPrice Wrote: [ -> ]Khon Kaen Sugar Industry (KSL) 14.00 Baht

Khonburi Sugar (KBS) 10.20 Baht

KTIS 10.40 Baht

For the first time KTIS share price is more than KBS.

Next target is to "catch up" with KSL share price.

Is this "target" achievable? Any views?

Skywoods project sales up to August 2014 :
Unit launched : 420
Unit sold : 130 (31%)
Unit unsold : 290 (69%)

Khon Kaen Sugar Industry - KSL
3QFY14 profit short of forecast by 15%
THAILAND | FOOD | TRADE FLASH
BLOOMBERG KSL TB │ REUTERS KSL.BK
 KSL reported 3QFY14 net profit of Bt358mn, down 42% y-y and 43% q-q, largely
blaming shipment delays and mounting SG&A expenses fueled by higher transportation
costs and interest expenses.
 The prospect of rising sugar prices should brighten its earnings outlook in FY15.
 We keep a ‘BUY’ call on KSL shares with Bt16.60/share target price.
KSL reported 3QFY14 net profit of Bt358mn, down 42% y-y as quarterly sales plunged
25% y-y. The quarterly profit also fell 15% short of our forecast.
How we view this
In this period, quarterly sales plunged 22% y-y to Bt4,771mn as sugar sales volume
dropped 25% y-y to only 199,000 tons from 264,800 tons due chiefly to shipment delays.
Margin came in at 25.6% in 3QFY14, up from 20.6% in 3QFY13 but down from 35.4%
in 2QFY13 as margins from power and ethanol businesses normally shrank in 2H.
SG&A expenses rose higher than normal at 8% y-y largely because of an escalation
in transportation costs. Interest expenses also shot up 19% y-y on increased debt
load. As a result, net profit for the quarter plummeted by 42% y-y and 43% q-q to
a mere 358mn in 3QFY14.

Skywoods project sales up to September 2014 :
Unit launched : 420
Unit sold : 147 (35%)
Unit unsold : 273 (65%)

http://infopub.sgx.com/FileOpen/KWCwinsS$21millionnewMEcontracts.ashx?App=Announcement&FileID=318875

King Wan Corporation wins S$21 m worth of new M&E contracts
Order book stands at S$184.6 million, with contracts lasting to 2017
SINGAPORE, 20 October 2014: MAINBOARD-LISTED King Wan Corporation Limited (“King Wan”
or “the Group”) (庆源企业) today announced it has secured four new mechanical and electrical (M&E)
projects in Singapore during the period from July 2014 to October 2014, worth a total of S$21 million.
The four new projects are as follow:
 Plumbing, sanitary and electrical systems installation for a 9200-bed purpose built workers
dormitory, which will be outfitted with comprehensive communal, recreational and commercial
facilities specifically catereing to the needs of its residents. This dormitory is located at Tuas
South Street 13.
The Group owns a 19% stake in the consortium which is involved in the design, development
and operation of this dormitory project.
 Aircon and mechanical ventilation system installation for the New Futura located at Leonie Hill
Road (a 124-unit condominium project with basement carparks and communal facilities);
 Plumbing and sanitary installation for Assisi Hospice, a medical care building with a
basement carpark, located along Thomson Road;
 Aircon and mechanical ventilation system installation for Addition & Alteration works for an
office unit in Singapore.
These projects will commence within the next six months and are scheduled to be completed by 2016

(20-10-2014, 06:39 PM)desmondxyz Wrote: [ -> ]http://infopub.sgx.com/FileOpen/KWCwinsS$21millionnewMEcontracts.ashx?App=Announcement&FileID=318875

King Wan Corporation wins S$21 m worth of new M&E contracts
Order book stands at S$184.6 million, with contracts lasting to 2017
SINGAPORE, 20 October 2014: MAINBOARD-LISTED King Wan Corporation Limited (“King Wan”
or “the Group”) (庆源企业) today announced it has secured four new mechanical and electrical (M&E)
projects in Singapore during the period from July 2014 to October 2014, worth a total of S$21 million.
The four new projects are as follow:
 Plumbing, sanitary and electrical systems installation for a 9200-bed purpose built workers
dormitory, which will be outfitted with comprehensive communal, recreational and commercial
facilities specifically catereing to the needs of its residents. This dormitory is located at Tuas
South Street 13.
The Group owns a 19% stake in the consortium which is involved in the design, development
and operation of this dormitory project.
 Aircon and mechanical ventilation system installation for the New Futura located at Leonie Hill
Road (a 124-unit condominium project with basement carparks and communal facilities);
 Plumbing and sanitary installation for Assisi Hospice, a medical care building with a
basement carpark, located along Thomson Road;
 Aircon and mechanical ventilation system installation for Addition & Alteration works for an
office unit in Singapore.
These projects will commence within the next six months and are scheduled to be completed by 2016

Thanks for the update
We already expect KW will be doing the M&E for the dorm
Project
The other 3 contracts are definitely bonuses, although I suspect the bulk of the quantum comes from the dorm project
Still very good news to see earnings visibility for next 2 years

FY15Q2 results out!

Havent done a thorough analysis, but key points:
1) Interim dividend increased to 0.7 cents from 0.5 cents.
Looks like management is keeping to their word to increase dividend from the sale of KTIS. I am pleasantly surprised, cos I thought they'll only increase the final dividend. From the look of things, both interim and final will be increased.
Payout is at least 2.2 cents (Very conservatively, assuming final dividend is NOT increased)
which gives a yield of around 6.9%
2) Sale of part of the stake in KTIS. Again, a surprise for me. I thought they'll be holding on to the stake for long term. Not complaining though, as the share price has risen substantially, and I do agree that it should eventually be divested so that capital can be recycled. Afterall, Kingwan's supposed strength is in capital allocation and recycling.
3) Book value rose to 34.16 cents per share.
A note of caution though, the stake in KTIS is market to market every quarter, so correspondingly, there may be markdowns in future if KTIS share price falls. Havent worked out whats the share price KTIS shares are marked currently, but KW management has a track record of being very conservative. for eg. In the previous Q1 result, the stake is carried in the books at 9.28 baht per share, well below the 10+ share price then.

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