AmResearch has maintained its 'sell' recommendation on KNM Group with an unchanged fair value of RM0.42 per share.
The research firm notes that 'KNM trades at a premium FY10F PE of 15x compared to its peers 10x'.
'We think that this is unjustified given that a major portion of the group's FY10F earnings stem from a Borsig deferred tax writeback,' says AmResearch.