(Post date : 9 August 2010)
Kumpulan Perangsang Selangor Berhad (KPS) is a Malaysia-based company engaged in investment holding, contracting in the works related to infrastructure and utilities and provision of management services. KPS operates in six segments: investment holding; property development and management; infrastructure and utilities; trading; hospitality, and golf club and recreation facilities.
KPS trades equipment used in water treatment plants and waste water treatment. As of December 31, 2009, the direct subsidiaries of KPS were Kumpulan Hartanah Selangor Berhad, Hydrovest Sdn. Bhd., Titisan Modal (M) Sdn. Bhd., Viable Chip (M) Sdn. Bhd., Cash Band (M) Berhad, Perangsang Consultancy & Engineering Sdn. Bhd., Perangsang Metal Selangor Sdn. Bhd., Selangor Construction Sdn. Bhd., Selangor Tiles Sdn. Bhd., Perangsang Segemal Sdn. Bhd., Perangsang Alphasoft Sdn. Bhd., Selangor Frits & Glazes Sdn. Bhd. and Selangor Amal Holdings Sdn. Bhd.
KPS holds strategic stakes in major water supply companies namely Konsortium ABASS Sdn Bhd (100%) via Titisan Modal (M) Sdn Bhd a 55% owned subsidiary of KPS, Syarikat Pengeluar Air Selangor Holdings Berhad (30%) and Taliworks Corporation Berhad (20%). KPS is well positioned to be a full-fledged water services provider in both upstream and downstream activities. Being a water treatment operator and service provider, it is envisaged that KPS will be transformed into a major water player in the country in the near future.
Kumpulan Perangsang Selangor Berhad (KPS), is geared to become a global infrastructure and utility player in an endeavour to strengthen its earnings base and enhance shareholder value. A subsidiary of Kumpulan Darul Ehsan Berhad, KPS will leverage its experience to capitalise on opportunities that may arise in the global arena. Currently, KPS is conducting viability assessments of highway development projects and water supply projects in the region.
KPS's participation in the infrastructure sector is through its interest in Sprint Holdings Berhad, the concessionare for Sprint Highway. Subject to regulatory approval, KPS will also hold a 20% equity interest in the privatisation of the West Coast Expressway Project in Malaysia.
KPS will continue to actively look for opportunities in the infrastructure and utility sector namely water, roads, power and possibly telecommunications, locally and abroad. Since its inception on 11 August 1975 with an authorised capital of RM75 million, KPS has grown into a sizeable company with an authorised capital of RM1.0 billion and paid-up capital of RM431.4 million. KPS was listed on Bursa Malaysia (formerly known as Kuala Lumpur Stock Exchange) on 22 July 2003.
Q : Stock price has retraced below 62%, should I buy this stock now?
A : From the major shareholders list, we noticed that SKIM AMANAH SAHAM BUMIPUTERA had disposed quite a number of KPS shares since March 2009. And it seems that SKIM AMANAH SAHAM BUMIPUTERA has ceased to become the substantial shareholders in this stock since year end of 2009. From here, we would like to conclude that the price will not be swing up to above 62% retracement, whici is about RM1.75. This is due to the reason, that there is no new major shareholders show interest in this stock currently, and share is trade within thin volume.
Q : My broker said this stock is more to political issue stock? What does it means? Does it means the fluctation of the stock price is very much subject to which political party rules this country ?
A : This is a sensitive issue in Malaysia. Sorry to say we are not able to give you any anwers here. Please ask your broker in detail what he or she means. For us, we only advice investors to buy or sell a stock based on their fundamental analysis and technical analysis (mostly refer to chart, RSI, Moving average, candlestick and so on). We normally do not advice any stock based on the its political issue.
Q : If I have bought this stock at the price of RM1.43, it seems that the price of stock seldom goes up to that level. Normally, it will drop before I decided to sell it. Should I still keep it or sell it at loss price?
A : From the chart here, it show that the latest lowest price is at about RM1.20, which is at about 17% discount from the price you have purchased. There is possibility that the stock will drop to this level in near future as the whole market is not so stable in this coming few months, where the financial report will be announced soon. It also depend on how many shares on your hand now, as the loss incurred might increased if you hold more shares. For example, if it drop to RM1.30, which is about 10% discounted from the price you have bought, and if you hold 50000 unit of shares, you have incurred lost at about RM7500 (excluded fees for transaction, brokers fees and stamp duty). From the chart, it shows that recent resistance is at RM1.45, it has touched twice this resistance, it seems stock price is hard to break this price at this moment. Advice: sell if this stock drop below RM1.35, to reduce your loss.
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