Family of Four

Will KPS Fly High in 2007?

The abolition of the Real Property Gains Tax has been announced and will take effect from April this year.

For whatever it is worth, since I have written this blog entry, I must as well post it.

Kumpulan Perangsang Selangor Berhad (KPS), the vanguard for the Kumpulan Darul Ehsan Berhad (KDEB) of Selangor is strategically involved in highway infrastructure, toll operations (SPRINT), water utility operations, property, hospitality & recreation.

KPS took over the listing status of SAP Holdings Bhd in 2003 with a paid-up capital of RM431.4 million.after a restructuring exercise. Currently, KPS is focus on highway and water industries, hoping to redcue its dependence on property.

KPS is on course to become the leading water player in Malaysia..The project that KPS is patiently awaiting is the Raw Water Transfer Project from Pahang to Selangor, the largest water-related project of the 9^th Malaysia Plan For this project; the Federal Government has already signed an agreement to get it funded through a loan from the Japan Bank of International Cooperation. Kumpulan Darul Ehsan Berhad (KDEB) will expend RM2.5 billion for the construction of water treatment plants and the laying of distribution networks. KPS has been appointed the main contractor to implement this project by KDEB.

With the formation of the National Water Commission and the approval of this project under Budget 2007, a fine booty awaits KPS. The fortune of KPS is about to change beginning 2007 for the better when this project takes off.

The recent offer from Perak is again another good water project where KPS will paly a pivotal role. Meanwhile, KPS is also sourcing water projects from Indonesia and Sri Lanka.

KPS’s current involvement in the water utility sector is through its interest in its associated companies, namely Taliworks Corporation Berhad and its beneficial interests in Konsortium Abass Sdn Bhd (ABASS) and Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH). It is envisaged that KPS’s role in the sector will be significantly enhanced in the future upon securing the appointment as Main Contractor for the design and construction of the Langat 2 Scheme Infrastructure Works and the operations and maintenance of the Water Treatment Plants.

KPS paid dividends of 4% for year ending 2002; 2.0% for year ending 2003 and 3 % for year ending 2005. The had quite a good performance last year and it is possible they may declare better dividends for year ending 2006.

Today, KPS peaked at 74 sen and by the noon close lost 1.5 sen to 70 sen. I guess the selling were from those punters who have benefited substantially from yesterday's generous gains. It's only natural to profit-take.

Quote of the Day:

"Life is full of obstacle illusions." Grant Frazier

Heartsong