MKLAND ( 8893 ) - A Hidden Gem To Discover




Property stocks continued their recovery from last week. We can monitor that most of the property stocks doing well such as ECOWLD, MAHSING, IOIPG, SUNSURIA, CRESBLD and GOB. If you all got follow me last week, GOB is one of the stock I recommended and it hit the highest of RM 0.41 ( + 7% ) from the RM 0.38 ( the price as I recommended ). 


More detail in : 
http://klse.i3investor.com/blogs/gob/125200.jsp

Today, I wish to share another undervalue property company which is MKLAND ( 8893 ), this company attract me and current price is fully undervalue among so much property companies. 

MKLAND Highlights
  • The group recorded steady performance of YTD, which registered RM12.5m (+2.5% YoY).
  • The Group plans to use RM47mil from the proceeds of the Perak land sale as working capital and the remaining RM25mil for ongoing and future development project expenses.
  • We expects the company’s net cash to increase to about RM122mil.
  • MK Land has close to 5,000 acres of land, with more than 4,000 acres in Perak, of which 3,000 acres are located in Lembah Beriah.
  • MK Land’s Damansara Perdana near the bustling Taman Tun Dr Ismail-Lebuhraya Damansara Puchong interchange area is its crown jewel. The company bought most of the land and started developing it in 1996, just prior to the 1997/1998 Asian financial crisis.
  • The Group plans to resume development at the 3,000-acre mixed development project, Bandar Teknopolis Perdana (formerly known as Lembah Beriah) in Perak, after halting the project following the launch of the first phase of residential homes 10 years ago.
  • The Group recorded net asset per share of RM 0.97.

Techincal Review



  • Target price RM0.295, RM0.31
  • Last closing price RM0.285
  • Support RM0.28
Possible for Bottom Fishing. MKLAND's share now it well supported above RM0.28 with anticipation of continuous improvement in its momentum and should the price rebound, it may continue to lift price higher to the next resistance levels of RM0.295 and cover the gap of RM0.31.

Conclusion
We believe that MKLAND has good prospect and it's currently trade at undervalue as it's Net Asset per share recored at RM 0.97. MKLAND's share price gapped down on 23rd May due to subsidiary Saujana Triangle Sdn Bhd gets surprise tax bill yet STSB disagreed with the assessment raised by the IRB and will appeal accordingly. We believe it's  minor impact to the company as Mkland's strategically located projects in the Klang Valley and Perak are expected to be the key drivers for the Group. 
Technically, MKLAND is well support at RM 0.28 and it ready to challenge the immediate resistance to lift the price higher to cover back the gap of RM 0.31. 

http://klse.i3investor.com/blogs/Mkland/125608.jsp