OSK Research maintains a 'Trading Buy' view on KNM Group Bhd with its target price remaining unchanged at RM2.22 based on a price-earning ratio of nine times financial year ending 2011 earnings per share.

OSK said the worries over its liquidity have been successfully addressed and going forward, it expects KNM's outlook to gradually improve in line with the recovery of the global oil and gas and petrochemical industries.

On Monday, KNM finally held an analyst briefing after pausing for a few quarters as the management believes the company's operations are finally turning around and the outlook for its process equipment segment was getting brighter.

Going forward, it will expand its services business and go into nuclear energy. 'KNM is still supported by strong orderbook of over RM2 billion,' said OSK in a research note today.

Meanwhile, ECM Libra also maintains 'Buy' call on KNM and increased the target price to RM2.29. 'We are taking our financial year 2011 estimates up a notch to reflect better utilisation (60 per cent to 71 per cent) next year, particularly from Canada,' it said.

ECM Libra said that apart from KNM's new venture into Africa, which would only bear fruit in nine months, the group is making some headway in countries, which have failed them previously with Canada, most importantly, seeing pick-ups in orders (some RM100 million so far). -- Bernama