Stock Name: KNM
Company Name: KNM GROUP BHD
Research House: OSK
Company Name: KNM GROUP BHD
Research House: OSK
OSK Research Sdn Bhd and HwangDBS Vickers Research maintained their 'buy' call on KNM Group Bhd with a higher target price
of RM3.34 to RM3.50 from the previous RM3.02 price.
OSK said the company had overcome the financial downtrend and expected to see a recovery this year. "It expects to see margins improve, contributed by its process equipment business segment," OSK Research said in a research note here today.
KNM, a diversified group with its core business in the provision of process plants, modules and O&M equipment and systems provider to various industries including oil and gas, has secured RM693 million worth of contracts year-to-date taking its order backlog to a record high of RM5.4 billion.
Of this, 41 per cent was for process equipment, while renewable and green energy constituted 40 per cent.
"We expect more new contracts going forward and higher margins from the newer jobs with the recovery more pronounced from second half of 2011 onwards," said another research company, HwangDBS.
KNM is poised to ride on the growing domestic and global opportunities as high oil prices will continue to spur new capital expenditure, said HwangDBS.
KNM is expecting strong overseas contribution from its energy unit following the GBP450m Energy Park Peterborough contract. There are abundant opportunities given to the rise in the global push for green and clean energy, and KNM has the expertise to provide total solutions by leveraging on Borsig’s strong track record, HwangDBS said.
Meanwhile, Kenanga Research house which also maintained its 'buy' call on KNM, has put a lower target price of RM3.06 saying it would remain cautious of the group's earnings forecast until the company consistently met the expectations. -- Bernama
of RM3.34 to RM3.50 from the previous RM3.02 price.
OSK said the company had overcome the financial downtrend and expected to see a recovery this year. "It expects to see margins improve, contributed by its process equipment business segment," OSK Research said in a research note here today.
KNM, a diversified group with its core business in the provision of process plants, modules and O&M equipment and systems provider to various industries including oil and gas, has secured RM693 million worth of contracts year-to-date taking its order backlog to a record high of RM5.4 billion.
Of this, 41 per cent was for process equipment, while renewable and green energy constituted 40 per cent.
"We expect more new contracts going forward and higher margins from the newer jobs with the recovery more pronounced from second half of 2011 onwards," said another research company, HwangDBS.
KNM is poised to ride on the growing domestic and global opportunities as high oil prices will continue to spur new capital expenditure, said HwangDBS.
KNM is expecting strong overseas contribution from its energy unit following the GBP450m Energy Park Peterborough contract. There are abundant opportunities given to the rise in the global push for green and clean energy, and KNM has the expertise to provide total solutions by leveraging on Borsig’s strong track record, HwangDBS said.
Meanwhile, Kenanga Research house which also maintained its 'buy' call on KNM, has put a lower target price of RM3.06 saying it would remain cautious of the group's earnings forecast until the company consistently met the expectations. -- Bernama
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