KSL +1.4%, Result Above View; RHB Ups Forecast

KSL Holdings (5038.KU) is up 1.4% at MYR1.40, outperforming the benchmark index, after reporting strong 3Q results; net profit rose 93% on-year to MYR30.0 million while revenue doubled to MYR81 million.

 With a nine-month net profit of MYR72 million, the results came in slightly above analysts expectations, accounting for about 76% of consensus forecast for FY11. 

RHB Research upgrades KSL to Market Perform from Underperform and lifts its target to MYR1.50 from MYR1.20 after raising FY11-FY13 earnings forecasts by 23%-33%. 

The house says underlying regulatory risk that had weighed on the sector has been lifted after the central bank issued guidelines to promote more prudent household lending recently. "The stronger recurring rental income should also provide KSL an additional buffer to withstand challenging economic conditions ahead," it says.