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Chee SIong Lau
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NTA 0.87...share price 0.59.…super under value....next qr will double digit grow
Chee SIong Lau
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nice qr......huat ah
Chee SIong Lau
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wow...not bad...today up 10%...i think related to super gd QR
Kelven Chung
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Wat happened, sudden drop a lot?
Chee SIong Lau
retailers scared then run away
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Chee SIong Lau
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wow.. Blogs Headlines
RHB Investment Research Reports
Kia Lim - Bricklaying for the Development of Johor

rhbinvest
Publish date: Thu, 22 Feb 2024, 10:59 AM
MYR1.05 FV based on 10x FY24F P/E. Kia Lim is at the forefront of capitalising on Johor's booming property market, driven by major infrastructure projects such as the Johor Bahru-Singapore Rapid Transit System (RTS) and key economic zones. It is benefiting from Johor's strong demand for  bricks, while also transitioning to higher-margin operations amidst industry consolidation, record selling prices, and taking advantage of a strong SGD. Its commitment to sustainability via energy-efficient bricks makes it a compelling investment, on top of its attractive 5.7x FY24F P/E.
Johor’s largest  brick manufacturer. Kia Lim has solidified its position as one of the largest clay brick manufacturers in the southern region of West Malaysia. The top three brick manufacturers have a 60% market share in Johor – these include Kia Lim, the biggest player in the state. It has the highest production capacity in the region, at about 180m bricks pa ie equivalent to 400,000 tonnes of clay. This substantial capacity underscores Kia Lim's pivotal role in the building materials sector, as well as its capability in meeting growing demand (especially in Johor) while maintaining product quality.
About 25% of sales are for the Singapore market. The company is a pioneer in sustainable construction solutions in Singapore, and benefits from a stronger SGD/MYR rate. This success is bolstered by demand for its Clay EconBlock product, which is superior to traditional bricks due to its light weight, thermal efficiency, and better acoustic insulation. These advantages make EconBlock bricks particularly appealing in Singapore, where the construction industry prioritises sustainable and energy-efficient materials. These attributes have a direct correlation with the growing demand for innovative and sustainable building materials in Singapore's construction industry – and help to further solidify Kia Lim's market position.
Industry consolidation led to record selling prices. The brick manufacturing sector has seen notable consolidation, intensified by the property market downturn and lockdowns related to the COVID-19 pandemic. The number of players has dwindled in Johor, resulting in a significant decline in brick capacity output. The industry faces high entry barriers, primarily due to substantial start-up costs for essentials like furnaces. This environment, coupled with recent high demand from Johor property developers, has pushed brick prices in the southern region to record highs, with a significant c.25% YoY increase. The price surge also helps offset rising input the costs of electricity, raw material, and labour.
Undemanding valuation. Based on an ascribed P/E of 10x on FY24F earnings, we derived a fair value of MYR1.05. Key risks: Slowdown in the property market – especially in the southern region and Singapore, operational risks, and the loss of key customers.

Source: RHB Research - 22 Feb 2024
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Mason Khor
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Drop cause by England cut rate ? This become below value lo
Chee SIong Lau
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老板,希望你不要私有化你公司。。。你的地皮很值钱。。。。
Chee SIong Lau
@mason, where are u from ??
1 Like · 2 months · translate
Mason Khor
penang haha
1 Like · 2 months · translate
Celine Chong
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in today, look like cup, should be up again
lim anthony888
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Why drop many!?
Kelven Chung
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It will be ?