Batu Kawan may be a stock that you never heard of, and yeah that's why the liquidity is low...
BUT there's something worth highlighting about the Company. These are quoted from Kenanga Research:
1. We view BKAWAN as a cheaper proxy to Kuala Lumpur Kepong (“KLK”) since BKAWAN’s 47%
stake in KLK is worth more than its own market capitalization.
2. It also trades at undemanding valuations of 8.5x FY11E PER vs. KLK’s 15.5x. We are expecting FY11E dividend yield of 5.9% and recommend a Sum-of-Parts fair value of RM19.38, implying total upside of 32.4%.
My view: Seriously, at the current market, it is hard to find Company with 5.9% dividend yield and trading at 8.5x PER only... But take note of the share low liquidity. So this stock is good for long term investor interested at dividend, rather than trading play...
This blog is related to observations regarding stocks traded in Malaysia. Disclaimer: The company analysis that appear in this blog is merely facts gathered from different sources and the author's personal view. It is not a buy or sell recommendation. The author do not guarantee the accuracy of the facts being presented. Please consult your investment advisors before acting on any information provided by the analysis above.
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