KSL Holdings Berhad is well positioned to benefit from Johor’s structural economic growth, supported by major infrastructure catalysts such as the Johor Bahru-Singapore Rapid Transit System (RTS) Link and the Johor-Singapore Special Economic Zone (JS-SEZ), according to Hong Leong Investment Bank (HLIB) Research.
HLIB said KSL’s sizeable landbank of about 5,972 acres, predominantly located in Johor, provides the group with a structural low-cost advantage. Land costs average only around 5.5% of gross development value (GDV), supporting property development earnings before interest and tax (EBIT) margins of more than 30%.
The research house identified Riveria Garden, KSL’s 1,026-acre integrated township in Iskandar Puteri, as a key growth driver for the group over the coming decade. The development has an estimated GDV of RM15 billion.
Early take-up at Riveria Garden has been strong, translating into solid sales momentum and putting KSL on track to exceed its FY2026 sales target of RM1.6 billion, HLIB said.
KSL’s focus on the mid-market owner-occupier segment is also expected to support demand, particularly as cross-border interest in Johor continues to grow.
Beyond property development, HLIB highlighted KSL’s recurring-income portfolio as an important earnings buffer. Its flagship KSL City Mall is fully occupied, with average rentals of RM23 per square foot and strong daily footfall.
The group’s hospitality operations provide another source of recurring income, led by KSL Hotel & Resort, which has an occupancy rate of about 90%.
HLIB said future assets, including KSL City Mall 2 in Nusa Bestari, could provide additional growth opportunities. Meanwhile, KSL Esplanade Mall & Hotel remains in its ramp-up phase, with softer occupancy but potential for improvement as operations mature.
The combination of recurring-income assets and a sizeable property development pipeline provides KSL with a balance between cash-flow stability and longer-term growth, HLIB said.
From a technical perspective, HLIB noted that KSL’s share price had corrected 23.2% from its year-to-date peak of RM3.58 to RM2.75 before stabilising at RM2.84.
Selling pressure has begun to ease, with the stock approaching oversold territory. Momentum indicators are also showing signs of a potential bullish crossover, suggesting scope for a technical rebound.
HLIB said a decisive breakout above the RM2.96 downtrend line, which coincides with the 100-day moving average, would strengthen the reversal case. This could open the way towards RM3.10, corresponding to the 50% Fibonacci retracement level, followed by RM3.30.
On the downside, key support levels are identified at RM2.75, RM2.68 — the 10-month low — and RM2.60. HLIB recommends a disciplined cut-loss level at RM2.67.
Overall, HLIB sees KSL as a beneficiary of Johor’s structural growth story, with its low-cost landbank, Riveria Garden development pipeline and recurring-income assets providing multiple avenues for earnings growth.
