At the AGM of KSH Holdings recently (26 July 2019), a shareholder stood up and asked the chairman if the company could continue to pay dividends in future years. 

The shareholder said he counted on that, given that the company had a great track record of paying dividends.

The shareholder noted that anyone who has held KSH shares since its 2007 IPO would have gotten back his initial capital and more.  

Now, that is something -- especially for a construction contractor-cum-property developer. 


After some digging and number crunching, I have these details: 

From $36,000 to …

$208,710
(in 12 years)


• Assume you bought 100,000 shares of KSH at 36 cents apiece during its IPO. Your outlay: $36,000.

• Since then KSH has given out bonus shares and done a stock split, so the number of shares you hold has ballooned by 3X to 302,500.

• KSH has paid out $66,535 in dividends to you.

• Your current shareholding is worth $142,175 at 47 cents a share.

• Total gain: $66,535 in dividends + $142,175 current market value of shares = $208,710.

That's a 5.8X return in 12 years, or 15.8% compounded annual growth rate!

Payment date

Dividend/bonus

No. of shares

$ received

14 Dec 2018

SGD 0.01

302,500

$3,02.50

20 Aug 2018

SGD 0.012

302,500

$3,630

08 Dec 2017

SGD 0.01

302,500

$3,02.50

BONUS 1 FOR 4

14 Aug 2017

SGD 0.015

242,000

$3,630

14 Aug 2017

SGD 0.005

242,000

$1,210

09 Dec 2016

SGD 0.0125

242,000

$3,025

22 Aug 2016

SGD 0.015

242,000

$3,630

22 Aug 2016

SGD 0.005

242,000

$1,210

 

BONUS 1 FOR 10

08 Dec 2015

SGD 0.0125

220,000

$2,750

08 Dec 2015

SGD 0.003

220,000

$6,600

21 Aug 2015

SGD 0.015

220,000

$3,300

08 Dec 2014

SGD 0.0125

220,000

$2,750

08 Aug 2014

SGD 0.0175

220,000

$3,850

29 Nov 2013

SGD 0.0125

220,000

$2,750

21 Aug 2013

SGD 0.0115

220,000

$2,530

21 Dec 2012

SGD 0.0135

220,000

$2,970

BONUS 1 FOR 10

23 Aug 2012

SGD 0.005

200,000

$1,000

01 Dec 2011

SGD 0.01

200,000

$2,000

23 Sep 2011

SGD 0.01

200,000

$2,000

08 Dec 2010

SGD 0.01

200,000

$2,000

30 Aug 2010

SGD 0.01

200,000

$2,000

08 Dec 2009

SGD 0.01

200,000

$2,000

28 Aug 2009

SGD 0.01

200,000

$2,000

28 Aug 2009

SGD 0.01

200,000

$2,000

11 Dec 2008

SGD 0.015

200,000

$3,000

28 Aug 2008

SGD 0.011

200,000

$2,200

 

STOCK SPLIT
2 FOR 1

24 Aug 2007

SGD 0.025

100,000

$2,500

Total dividends

$66,535

Basic data: SGX website


• The returns would be much higher if you had subscribed for warrants in 2009 and exercised them. I have excluded the effects of this from the above calculation. 


From $58,000 to …

$409,940
(in 12 years)

 

Now, let's assume you did subscribe for your entitlement (post stock split) of 200,000 warrants (1-for-1 at 1 cent each) and you subsequently (pretty quickly exercised them at 10 cents apiece, as did a number of shareholders).

Your cost was 200,000 warrants x 11 cents each = $22,000.

Thus your shareholding has now surged to 400,000 shares, and after 3 bonus issues, you have a total of 605,000 shares for which your capital investment was $36,000 + $22,000 = $58,000.

The dividends you would have received add up to an astonishing $125,590!

In absolute dollars: 

You stock holding's current value = 605,000 x 47 cents = $284,350.

Total gain: $125,590 + $284,350 = $409,940. What a windfall!

That's a 7.1x return, or a 17.7% compounded annual growth rate!

Payment date

Dividend/bonus

No. of shares

$ received

14 Dec 2018

SGD 0.01

605,000

$6,050

20 Aug 2018

SGD 0.012

605,000

$7,260

08 Dec 2017

SGD 0.01

605,000

$6,050

BONUS 1 FOR 4

14 Aug 2017

SGD 0.015

484,000

$7,260

14 Aug 2017

SGD 0.005

484,000

$2,420

09 Dec 2016

SGD 0.0125

484,000

$6,050

22 Aug 2016

SGD 0.015

484,000

$7,260

22 Aug 2016

SGD 0.005

484,000

$2,420

BONUS 1 FOR 10

08 Dec 2015

SGD 0.0125

440,000

$5,500

08 Dec 2015

SGD 0.003

440,000

$1,320

21 Aug 2015

SGD 0.015

440,000

$6,600

08 Dec 2014

SGD 0.0125

440,000

$5,500

08 Aug 2014

SGD 0.0175

440,000

$7,700

29 Nov 2013

SGD 0.0125

440,000

$5,500

21 Aug 2013

SGD 0.0115

440,000

$5,060

21 Dec 2012

SGD 0.0135

440,000

$5,940

BONUS 1 FOR 10

23 Aug 2012

SGD 0.005

400,000

$2,000

01 Dec 2011

SGD 0.01

400,000

$4,000

23 Sep 2011

SGD 0.01

400,000

$4,000

08 Dec 2010

SGD 0.01

400,000

$4,000

30 Aug 2010

SGD 0.01

400,000

$4,000

08 Dec 2009

SGD 0.01

400,000

$4,000

28 Aug 2009

SGD 0.01

400,000

$4,000

28 Aug 2009

SGD 0.01

400,000

$4,000

Exercise of warrants

11 Dec 2008

SGD 0.015

200,000

$3,000

28 Aug 2008

SGD 0.011

200,000

$2,200

STOCK SPLIT
2 FOR 1

24 Aug 2007

SGD 0.025

100,000

$2,500

Total dividends

 $125,590

Basic data: SGX website



There is a 1.2 cent final dividend for FY2019 to be paid on 16 Aug 2019. 

KSH choocheeonnKSH co-founder, executive chairman and MD Choo Chee Onn, 68. Photo: CompanySo what did Mr Choo Chee Onn, the executive chairman, reply to the shareholder's question on future dividends?

"Since our IPO, we have not failed shareholders when it comes to dividends. Currently, our balance sheet is strong. I can't predict for the next 5-10 years but over the next 2-3 years we definitely can pay dividends."


Mr Choo is one of the founders of KSH, and clearly has created tremendous shareholder value as executive chairman and MD since IPO. 


KSH is likely to benefit from a confluence of big catalysts: 

→ KSH: Bulk of en bloc redevelopments yet to award construction contracts


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