Metro Kajang

Written on June 16, 2009 – 12:50 pm | by Kampung Boy |

Metro Kajang or in short Metrok (6114) is a property development company listed in the main board of the Bursa Malaysia. Metrok is controlled by the Chen family headed by Dato Chen Kooi Chiew as the executive chairman.

With many current projects and future projects in hand, Metro Kajang symbolizes a steady and ever growing property development company. Taman Bukit Mewah, Saville Residence just to name a few of it’s on going projects.

The interesting part about Metro Kajang is the PE and future earnings of the company. Many properties company share prices has risen almost double but Metrok is still lagging behind compared to others.

Reasons why i invested on Metrok :-

Low Pe ~ 4+
Improved quarter to quarter eps from 3.1 to 3.43 (For 2nd quarter)
Improved cumulative eps from 7.78 to 8.44 (Total for 1st two quarters)
Many ongoing and future projects
Still lagging in share price compared to Sunrise and Mah Sing

I have 3500 shares of Metrok :-

1000 shares (RM1.07) - Monday 15th June 2009
1000 shares (RM 1.06) - Monday 15th June 2009
1500 shares (RM 1.00) - Tuesday 16th June 2009

Average price ~ RM 1.04

Fundamentally Metro Kajang is strong. With such a low PE plus good earnings coming up, i couldn’t see why Metro Kajang can’t catch up with the price of Sunrise and other property company.

Just imagine the price of Metro Kajang if the PE of Metrok is 8! At least RM 1.50… The short fall currently for Metrok is that it’s under the property sector which is still quite stale due to recession.

Nonetheless, with time on my side, i couldn’t see why investing in Metro Kajang couldn’t beat a 3% early fixed deposit return UNLESS we are going to another spell of recession.

Feng Shui will always turn (Feng shui lun lui juan) like my sifu always say. Now is not the property boom but when the time come, be prepared for a tsunami wave!

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