Stock Name: KKB
Company Name: KKB ENGINEERING BHD
Company Name: KKB ENGINEERING BHD
| Research House: MIDF | Price Call: TRADING BUY | Target Price: 1.96 |
Showing posts with label KKB. Show all posts
Showing posts with label KKB. Show all posts
April 28, 2015
November 17, 2014
Earnings dragged by margin compression and lack of new jobs
Stock Name: KKB
Company Name: KKB ENGINEERING BHD
Company Name: KKB ENGINEERING BHD
| Research House: MIDF | Price Call: HOLD | Target Price: 2.15 |
September 9, 2014
KKB -Associate bagged RM14 5m contract
Stock Name: KKB
Company Name: KKB ENGINEERING BHD
Company Name: KKB ENGINEERING BHD
| Research House: MIDF | Price Call: BUY | Target Price: 2.84 |
August 8, 2014
KKB - Lacklustre 2Q14 numbers but valuation remains
Stock Name: KKB
Company Name: KKB ENGINEERING BHD
Company Name: KKB ENGINEERING BHD
| Research House: MIDF | Price Call: BUY | Target Price: 2.84 |
May 8, 2014
KKB Engineering Bhd - Earnings lagged expectations due to low billings
Stock Name: KKB
Company Name: KKB ENGINEERING BHD
Company Name: KKB ENGINEERING BHD
| Research House: MIDF | Price Call: BUY | Target Price: 2.93 |
December 3, 2013
KKB Eng - Secured LPG Cylinder contract
Stock Name: KKB
Company Name: KKB ENGINEERING BHD
Company Name: KKB ENGINEERING BHD
| Research House: MIDF | Price Call: BUY | Target Price: 3.35 |
February 21, 2012
Valuation remains undemanding; dividends attractive
Stock Name: KKB
Company Name: KKB ENGINEERING BHD
Company Name: KKB ENGINEERING BHD
| Research House: AMMB | Price Call: BUY | Target Price: 2.38 |
November 3, 2011
KKB Engineering - Growing with Score
Stock Name: KKB
Company Name: KKB ENGINEERING BHD
KKB Engineering Bhd
(Nov 3, RM1.72)
Maintain buy with revised fair value of RM2.20 from RM2.83: The presence of KKB plus Samalaju Industrial Park's attraction to investors given its good basic infrastructure, available water supply and huge capacity to supply electricity at competitive pricing, we expect some sizeable contracts to come KKB's way in FY12 and FY13.
While we like the company's solid balance sheet and potential to reap enormous earnings from the Sarawak Corridor of Renewable Energy (Score), we maintain our 'buy' recommendation but revise lower our fair value to RM2.20 on incorporating lower earnings arising from the temporary slowdown of contracts flow this year, and on applying a more conservative 8 times price earnings ratio (PER).
Having clinched its first job in Samalaju via a water supply project in Bintulu worth RM196 million as well as the contract to carry out earthworks for OM Materials, KKB is positioned to make its presence felt in Samalaju Industrial Park. As the company has been pre-qualified to construct plants for Tokuyama, Asia Mineral Ltd, OM Materials and Press Metal's investments in Samalaju, we expect it to secure more sizeable contracts here in the near term.
Phase 1 of the company's expansion plan involves doubling the fabrication capacity of its new deepriver front yard to 30,000 tonnes per annum. This has just been completed while construction of a jetty to facilitate access to Sungai Sarawak is still in progress. Phases 2 and 3 are scheduled to be completed by 2014. By then, KKB's earnings would rise to another level, boosted by the additional fabrication capacity and logistics advantage from the deepwater front and jetty
The developments in Score slowed down in 1H to make way for the state elections. Nevertheless, we are seeing a pick-up in contracts flow of late and KKB recently secured some contracts, although these are small. We believe that Score projects will be revived in FY12 given that the construction of most plants in Samalaju will kickstart next year.
We remain positive on KKB's progress although its share price is down 21% from its 2011 peak in tandem with the market-wide correction. As we like the company's strong balance sheet and good track record, we maintain our 'buy' recommendation. However, we prefer to lower our estimates for the next two years and slash our PER parameter to 8 times from 10 times, for a new fair value of RM2.20. ' OSK Research, Nov 3
This article appeared in The Edge Financial Daily, November 4, 2011.
Company Name: KKB ENGINEERING BHD
| Research House: OSK | Price Call: BUY | Target Price: 2.20 |
KKB Engineering Bhd
(Nov 3, RM1.72)
Maintain buy with revised fair value of RM2.20 from RM2.83: The presence of KKB plus Samalaju Industrial Park's attraction to investors given its good basic infrastructure, available water supply and huge capacity to supply electricity at competitive pricing, we expect some sizeable contracts to come KKB's way in FY12 and FY13.
While we like the company's solid balance sheet and potential to reap enormous earnings from the Sarawak Corridor of Renewable Energy (Score), we maintain our 'buy' recommendation but revise lower our fair value to RM2.20 on incorporating lower earnings arising from the temporary slowdown of contracts flow this year, and on applying a more conservative 8 times price earnings ratio (PER).
Having clinched its first job in Samalaju via a water supply project in Bintulu worth RM196 million as well as the contract to carry out earthworks for OM Materials, KKB is positioned to make its presence felt in Samalaju Industrial Park. As the company has been pre-qualified to construct plants for Tokuyama, Asia Mineral Ltd, OM Materials and Press Metal's investments in Samalaju, we expect it to secure more sizeable contracts here in the near term.
Phase 1 of the company's expansion plan involves doubling the fabrication capacity of its new deepriver front yard to 30,000 tonnes per annum. This has just been completed while construction of a jetty to facilitate access to Sungai Sarawak is still in progress. Phases 2 and 3 are scheduled to be completed by 2014. By then, KKB's earnings would rise to another level, boosted by the additional fabrication capacity and logistics advantage from the deepwater front and jetty
The developments in Score slowed down in 1H to make way for the state elections. Nevertheless, we are seeing a pick-up in contracts flow of late and KKB recently secured some contracts, although these are small. We believe that Score projects will be revived in FY12 given that the construction of most plants in Samalaju will kickstart next year.
We remain positive on KKB's progress although its share price is down 21% from its 2011 peak in tandem with the market-wide correction. As we like the company's strong balance sheet and good track record, we maintain our 'buy' recommendation. However, we prefer to lower our estimates for the next two years and slash our PER parameter to 8 times from 10 times, for a new fair value of RM2.20. ' OSK Research, Nov 3
This article appeared in The Edge Financial Daily, November 4, 2011.
September 13, 2011
KKB Engineering has more contracts in the pipeline
Stock Name: KKB
Company Name: KKB ENGINEERING BHD
KKB Engineering Bhd
(Sept 13, RM1.65)
Maintain buy at RM1.64 with fair value of RM2.83: KKB Engineering (KKB) announced yesterday that it has secured RM30.7 million worth of contracts. Its subsidiary, Harum Bidang Sdn Bhd, has secured a contract worth RM14.2 million from YWP Builders Sdn Bhd to manufacture and supply MSCL Water Pipes and Pipe Specials for the Bekalan Air Luar Bandar (BALB) project in Sarawak. KKB was also awarded the fabrication, supply and delivery contract for LPG cylinders by Petronas Dagangan Bhd for one year, commencing September with an option to extend for another year. For the first 12 months, the'' estimated contract sum is RM16.5 million.
We were expecting more projects to be announced soon so this is within our expectation. We are positive on KKB's 3Q numbers as the further uptick in construction and engineering activities within Sarawak Corridor of Renewable Energy (Score) will benefit KKB.
Although the supply of water pipes and LPG cylinders fetch narrower margins than fabrication, and KKB posted weaker results for 2QFY11, we are still bullish on this counter because we believe that more projects are expected to kick in within Score, which will benefit KKB.
KKB's healthy earnings before interest and tax (Ebit) margins from its engineering and construction division, strong balance sheet with net cash and undemanding valuation, continue to justify our 'buy' call on the company, with a fair value of RM2.83 based on 10 times FY12 earnings per share. ' OSK Research
This article appeared in The Edge Financial Daily, September 14, 2011.
Company Name: KKB ENGINEERING BHD
| Research House: OSK | Price Call: BUY | Target Price: 2.83 |
KKB Engineering Bhd
(Sept 13, RM1.65)
Maintain buy at RM1.64 with fair value of RM2.83: KKB Engineering (KKB) announced yesterday that it has secured RM30.7 million worth of contracts. Its subsidiary, Harum Bidang Sdn Bhd, has secured a contract worth RM14.2 million from YWP Builders Sdn Bhd to manufacture and supply MSCL Water Pipes and Pipe Specials for the Bekalan Air Luar Bandar (BALB) project in Sarawak. KKB was also awarded the fabrication, supply and delivery contract for LPG cylinders by Petronas Dagangan Bhd for one year, commencing September with an option to extend for another year. For the first 12 months, the'' estimated contract sum is RM16.5 million.
We were expecting more projects to be announced soon so this is within our expectation. We are positive on KKB's 3Q numbers as the further uptick in construction and engineering activities within Sarawak Corridor of Renewable Energy (Score) will benefit KKB.
Although the supply of water pipes and LPG cylinders fetch narrower margins than fabrication, and KKB posted weaker results for 2QFY11, we are still bullish on this counter because we believe that more projects are expected to kick in within Score, which will benefit KKB.
KKB's healthy earnings before interest and tax (Ebit) margins from its engineering and construction division, strong balance sheet with net cash and undemanding valuation, continue to justify our 'buy' call on the company, with a fair value of RM2.83 based on 10 times FY12 earnings per share. ' OSK Research
This article appeared in The Edge Financial Daily, September 14, 2011.
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