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Overview
Financial Highlight
HeadlinesBusiness Background Kelington Group Bhd is a provider of gas and chemical delivery solutions for the technology industry. The company supplies various industrial gases and specialty gases in form of portable high-pressure gas cylinders or from on-site gas generators for use in the electronics, semiconductor, food processing, and oil and gas industries. Its segments include Ultra High Purity delivery systems that ensure safe handling of delivery and distribution of gases and chemicals; Process engineering that engineers and constructs mechanical and electrical systems that support industrial processes; and General contracting works providing civil and mechanical and engineering services to clean rooms and Research and Development centres.
  Bigbull99 ok. Lets see. Their big contract wins will immediately affect this next quarter results. Anyhow they are growing exponentially. Just hold until anything bad happens. 21/02/2019 8:15 PM  Kc Teh this stock is weird, price at historical high, bad market sentiment, buying force still stronger than selling force. maybe too less retailer? 23/02/2019 12:28 AM Bigbull99 why weird? fundamentally good stock movement is always like that. More and more people start noticing that's why every little drop in price is supported. 25/02/2019 1:35 PM Kc Teh overall results are good and prospect intact, but I think the share price will retrace abit due to high PE. and consider the warrant near expiry. hv sold my wa at 0.795. 26/02/2019 11:53 PM Veron_teo wendyuong even many dispose it still stay above 1.23 which for me is very healthy 11/03/2019 6:19 PM wendyuong :-) I stil hold the share, just wonder what’s happening only. Because I’m a new investor. Thanks Yu,Veron! 11/03/2019 6:37 PM Bigbull99 normally after QR will go into sleep mode for about 1-2 months. People will take profit and wait. so no worries. 17/03/2019 1:23 PM antoniomc27 why all the insiders have ben selling repeatedly? Last batch on 26-Mar 30/03/2019 1:33 AM  SuperPanda Keep moving up, when CO2 starts to contribute, it may go higher...keep holding 09/04/2019 5:26 PM  paperplane Kelington (KGRB MK, MYR1.33, Not rated): Latest orders show prospects intact; warrants are currently in-the-money • Secured several orders totalling MYR53m. • Riding on “Made in China 2025” campaign. • Trading at 14.3x consensus FY19 EPS. What’s New? Kelington has secured several orders totalling MYR53m, bringing YTD job win to MYR146m. The new contracts secured were largely for specialized engineering works under the Ultra High Purity (UHP) segments for wafer fabs in China. The majority of the contracts were awarded by global renowned semiconductor players there. With these awards, Kelington’s outstanding order book is now at MYR406m, equivalent to ~116% of FY18 revenue. Judging from the latest trend, it appears that management’s expansion into China is bearing fruit. Revenue from China jumped 93% YoY in FY18, and the group is set to further ride on the “Made in China 2025” campaign. Exports market is key. Moving forward, export markets will have a significant impact to the group’s profitability. Today, China and Singapore account for approximately 71% of its outstanding order book. Notably, these orders are mainly from the UHP division. Separately, its Industrial Gases division should also do better in FY19, underpinned by higher contribution from the new businesses: on-site gas supply and manufacturing of liquid carbon dioxide (likely to commence in 3Q19). Tender book. Against a stronger pipeline, the street is forecasting a robust 22.2% 3-year EPS CAGR for FY18-21. Note that the group is also tendering for approximately MYR1.2b of projects, across its key operating markets like Malaysia, Singapore, China and Taiwan. Valuation. Brokers are bullish on the stock with two Buys and a mean target price of MYR1.56, offering a upside potential of around 17%. Valuation wise, the stock is trading at 14.3x consensus FY19 EPS of 9.3sen, lower than its 3-year historical average P/E of 15.9x. Investors who wish to invest in Kelington may consider its warrants which are currently in-the-money (but due to expire in Jun 2019). Healthy balance sheet. Note that Kelington also has a healthy balance sheet. At end-Dec 2018, the group is sitting on a net cash of ~MYR50m (~MYR0.17/sh), which is approximately 13% of its current market capitalisation. 18/04/2019 9:35 AM shpg22 I had issued strong warning on LONBISC when its near recent peak before dive. Now I m issuing the same strong warning on KGB. 28/04/2019 12:31 PM Gabriel Khoo KWAP and now kenanga growth fund as kgb substantial shareholder. Prospect is good 29/04/2019 6:52 PM SuperPanda shpg22 i bought below 80c and still holding, it shoot to 1.30 after rakuten start covering and fund start to collect. when co2 start contribute end this year, earning will improve and next is TP 1.60 im sitting on big profit now .. ha ha 100x 01/05/2019 7:52 PM shpg22 Looks like that chicken that challenge me had deleted his post. Shame on u. 02/05/2019 1:47 PM  YAPSS Day 65 of Fundamental Daily, YAPSS will be covering Kelington Group Berhad's fundamental via a short animated video. It is solely based on my opinion and I hope it helps :) #YAPSS #FundamentalDaily #KelingtonGroupBerhad Click the on the link to find out more: https://youtu.be/2UJnsyoOu6E 07/05/2019 9:56 PM Gabriel Khoo https://www.thestar.com.my/business/business-news/2019/05/21/rhb-research-retains-buy-on-kelington-with-higher-target-price/ 22/05/2019 7:44 PM shpg22 Pls ignore all the analyst target price if you don't want to lose your hard earn money 27/05/2019 9:44 AM Gabriel Khoo KUALA LUMPUR: Kelington Group Bhd is confident of achieving another record year for the 12 months ending Dec 31, 2019 (FY19), which will mark a fourth straight year of record net profit after a blip in FY15. The integrated engineering solutions provider swung into a net loss of RM2.62 million in FY15 as it recognised impairment losses on certain projects, trade receivables and amounts owing by customers. However, it rebounded the following year and has been profitable since. Group chief executive officer Raymond Gan Hung Keng said FY19 profit growth will be driven by its ultra-high purity (UHP) business, which continues to be the group’s anchor of growth. “I am confident we will [perform] better this year, thanks to a higher proportion of UHP jobs that bring higher profit margins,” he told The Edge Financial Daily in an interview. He added that the bulk of the group’s outstanding order book totalling RM330 million will be recognised this year. Kelington reported its highest-ever annual net profit in FY18, which jumped 59% year-on-year (y-o-y) to RM18.32 million with revenue up 12% y-o-y to RM350.02 million. The record earnings had a favourable impact on its share price, which rose to an all-time high of RM1.39 on April 25. Its price has since pulled back, closing at RM1.25 last Thursday, but still up 51% from 83 sen a year ago. This brings the group’s market capitalisation to RM379.59 million. On its performance in the first quarter of FY19 (1QFY19), it is on track to meet its full-year expectations. The group’s 1QFY19 net profit was up 5% y-o-y at RM4.84 million despite a decrease in revenue to RM76.41 million from RM86.55 million in 1QFY18. Year-to-date, Kelington has clinched new projects totalling RM146 million, 87% higher than the RM79 million achieved in 1QFY18. This brings the group’s total outstanding order book to RM330 million, 70% of which are derived from UHP projects, followed by process engineering (16%), general contracting (4%) and industrial gas business (1%). Gan declined to give the group’s order book target for 2019, except to say that it is still too early to tell. The total value of projects clinched by Kelington last year hit record of RM424 million, surpassing the RM374 million achieved in FY17. Gan said the group is tendering for RM1.2 billion worth of jobs, in Malaysia, Singapore, China and Taiwan. He noted that so far, there has been no slowdown in the number of tenders from China, despite ongoing trade tensions between the US and China and negative growth data recorded on the latest worldwide spending on semiconductor equipment. Of the group’s total outstanding order book, China accounts for 15%, followed by Singapore at 59% and Malaysia, 17%. The most recent order the group secured was from China, a RM53 million new contract for specialised engineering works under the UHP segment for wafer fabrication. According to the US-based Semiconductor Equipment and Material International data, China remained as one of the top three world’s largest semiconductor equipment spenders in the first quarter of 2019 (1Q19) with billings of US$2.36 billion, down 11% y-o-y from RM2.69 billion. Still, China outperformed worldwide spending on semiconductor equipment, which declined 19% y-o-y to US$13.79 billion. Industrial gas business to take off in FY20 On its industrial gas business segment, where it made its first foray in 2016, Gan said the business is profitable albeit its contribution to the group’s revenue is still immaterial. However, he expects its contribution to take off from FY20 when the group’s liquid carbon dioxide (LCO2) manufacturing plant in Kerteh, Terengganu commences production in 4Q19. It is setting aside RM60 million in capital expenditure for the new plant, half of which will be used this year and the rest progressively over the next five years. Already, Kelington has secured orders for the new LCO2 plant, which will take up some 20% of total annual capacity of 50,000 tonnes. Additionally, it has secured a 10-year contract to supply on-site nitrogen gas to a photovoltaic manufacturer’s manufacturing plant. 17/06/2019 9:08 AM  |
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