KING WAN CORP -- loads of cash

KTIS has continued to rise. Hit 12.20 baht. This increases the value of King Wan's stake in KTIS. If it continues to rise, the greater the realised value of its KTIS shares will enable King Wan to pay out a higher dividend in the near term.

King Wan ($0.315, unchanged) announced that it had secured
S$21 mln worth of new M&E contracts which will commence
within the next six months and are scheduled to be completed by
2016. The company’s order book now stands at S$184.6mln with
contracts lasting to 2017.

Share price performance has been boring. Now company has announced 0.7 cent interim dividend. It's higher than the normal 0.5 cent.

We expect the final dividend to be 2.3 cents, up from 1 cents normally.

It's a big expectation which can only be met if they start selling KTIS shares in the next few mths. The cash level is S$6+million, which means they have yet to sell KTIS shares.

I will hold King wan long term if it do generate div every year for 2 to 3 cts.

At the price of 29 to 32 cts brought in why not.

Haha infact KTIS do generate quite a lot of profit for KW.

I do hope KW hold it rather to get only 1 times special div from KW by selling it.

This money tree do generate $$$ by shaking it.

Hehe surgar sweet sweet well branded by japanese.

hp3000: You are a steady long-term investor. Personally, I would like to see King Wan share price rise in the short term because many people have bought in and held it in anticipation of a jump in dividends from the sale of KTIS shares by King Wan. This has been delayed for too long. KTIs is now at 12 baht, already 20% higther than IPO price. HOpe KW sells off a portion, and pay 2.3 cents as final div.

I agree 0.7c div this is a good surprise but I don't think this is allowed by the sale of KTIS shares. They only sold 126 750 SGD of KTIS so that's really marginal. I am actually quite happy that they keep most of their KTIS shares. At the moment KTIS dividends paid to KWC allow an additional 0.5c div. KTIS did quite well the last 2 quarters so hopefully they will be able to raise substantially their dividends.

My expectation is 2.5c div for 2015 but this is assuming a very small sale of KTIS shares. If they sell 10% every year then 3c div/year can be easily paid but again I would be happy to see their holding in KTIS kept so as a more sustainable driver for future growth in FCF. Especially that KWC associates (mostly from the construction sector) are not really doing well and giving much to KWC at the moment.

But who knows going forward these associates can finally show some good return to KWC