A leading Ultra-High Purity (UHP) Gas and Chemical Delivery Solutions Provider in Malaysia, China, Taiwan and Singapore. KGB is an integrated engineering solutions provider specializing in ultra-high purity (UHP) gas and chemical delivery systems, mechanical process engineering, mechanical systems and electrical systems. The Group provides end-to-end engineering solutions ranging from system design to fabrication and installation of equipment to testing and maintenance.
Outstanding orderbook about RM277m. Yesterday, KGB announced that it has secured RM24m contract to Givaudan Singapore (a leading flavour and fragrances manufacturer). Together with the RM19m contract to a China global semiconductor MNC (secured on 3 Apr) and its first industrial gas supply contract of RM20m (secured on 28 Mar) to Hanwha Q CELLS (one of the world’s largest manufacturers of solar cells and modules), KGB’s has an outstanding orderbook of ~RM277m.
Serving diversified industries. Established since 2000, the Group serves customers in the high technology industry across different sectors such as Industrial Gases, Wafer Fabrication, Solar Energy, TFT-LCT, Bioscience and Light Emitting Diode (LED). KGB has also expanded its industry focus to include the F&B, pharmaceutical, healthcare and oil and gas sectors. In FY2016, Singapore contributed 39% to the revenue, followed by Malaysia (38%), Taiwan (10%), China 98%) and other (5%).
Potential downtrend reversal. KGB is currently trading at 8.3x FY16 P/E (7.1x if excludes 7.9 sen netcash). The stock has retraced from 52-week high of RM0.64 (5 Apr) to a low of RM0.53 (14 Apr) before ending at RM0.565, above the 30-d SMA level (now at RM0.545). Short term rebound seems taking shape and we expect prices to bottom up amid the formation of hammer-liked candlestick. A decisive breach above RM0.59 (10-d SMA) is likely to spur prices higher towards RM0.64 and our long term objective of RM0.70 (123.6% FR). Key supports are RM0.53-0.545. Cut loss at RM0.525.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....