KNM; Hold
Price Target: RM0.55; KNMG MK

KNM announced that it has secured additional new order intakes worth RM307m since its last order win of RM308.6m in Tatarstan on 19 Feb 13. This takes its total order book (excluding Peterborough and Orizon projects which have yet to secure financial close) to RM2.4bn.

While order book remains healthy (1x FY12 sales), we believe that project execution remains the critical factor for KNM to deliver strong profitability given its weak profit margin. We maintain our Hold rating with RM0.55 TP (based on 8x FY13 EPS) as it lacks near-term re-rating catalyst given the weak external outlook.

Source: HwangDBS Research - 29 May 2013