Stock Name: KNM
Company Name: KNM GROUP BHD
Research House: HWANGDBS
Company Name: KNM GROUP BHD
Research House: HWANGDBS
HwangDBS says that KNM has secured RM693 million wins year to date, taking its order backlog to a record high of RM5.4 billion.
It noted that of this, 41 per cent is for process equipment, while renewable & green energy constitute 40 per cent.
The new orders are equal to 23 per cent of its RM3 bilion new order win assumption for financial year 2011 forecast.
"Its current RM17 billion tender book will continue to replenish its order book, and we expect more new contracts going forward. We expect higher margins from the newer jobs with the recovery more pronounced from H2 FY2011 onwards."
KNM is poised to ride on the growing domestic and global opportunities as high oil prices will continue to spur new capital expenditure.
Valuation is undemanding at 11.2 times FY2011 earnings against peers’ 16.7 times. HwangDBS is making a 'buy' call in KNM at RM3.50. - Reuters
It noted that of this, 41 per cent is for process equipment, while renewable & green energy constitute 40 per cent.
The new orders are equal to 23 per cent of its RM3 bilion new order win assumption for financial year 2011 forecast.
"Its current RM17 billion tender book will continue to replenish its order book, and we expect more new contracts going forward. We expect higher margins from the newer jobs with the recovery more pronounced from H2 FY2011 onwards."
KNM is poised to ride on the growing domestic and global opportunities as high oil prices will continue to spur new capital expenditure.
Valuation is undemanding at 11.2 times FY2011 earnings against peers’ 16.7 times. HwangDBS is making a 'buy' call in KNM at RM3.50. - Reuters
No comments:
Post a Comment