Our Consumer Foods Division under Ibufood Corporation Sdn. Bhd. and its subsidiary companies (“Ibufood Group”)

The Bedding Products Division under Kaiserkorp Sdn. Bhd. and its subsidiary companies (“Kaiserkorp Group”)

Our Building Materials Division under Agrow Malaysia Sdn. Bhd. and its subsidiary companies (“Agrow Group”).

UHP DELIVERY SYSTEMS

We serve industries that require ultra high purity (UHP) gases and chemicals in specialized applications. Having a strong understanding of the unique characteristics of these specialty gases and chemicals, we engineer solutions that ensure safe handling of the delivery and distribution of these substances all the way from source to equipment to waste disposal.

The use of gas purification and abatement technologies are critical to ensure that gases fed into the UHP delivery system are of specified purity level, while the waste gases produced as a result are treated accordingly prior to disposal.

BULK GAS DELIVERY SYSTEM

SPECIAL GAS DELIVERY SYSTEM

CHEMICAL DELIVERY SYSTEM

GAS DETECTION & SCADA

FACILITIES HOOK UP

EXHAUST SYSTEM

CHAPTER 4

Kenanga forecasts higher orders for Kelington in FY21

TheStar Wed, Jan 20, 2021 08:56 am.

KUALA LUMPUR: Kenanga Research has upgraded its earnings outlook on Kelington Group Bhd on expectation of another year of record high orders.

In FY20, the group secured an all-time high order of RM490mil with SMIC continuing to award more jobs.

Existing SMIC jobs at hand are expected to keep the group busy until June, excluding on-going 2021 tenders.

"We came away from a conference call with the management feeling pumped-up over the group’s prospects.

"With increased expansions among wafer fab players taking place this year due to a surge in demand for semiconductor components, we believe that FY21 could yet be another record year, building upon the existing all-time high order of RM490m secured in FY20," said Kenanga.

It said Kelington as the incumbent has the advantage in winning the 2021 tenders, which will consist of UHP holl-up in all four SMIC fabs.

The group has also secured sub-contract jobs from TSMC via a partner as well as Micron, which is looking to expand due to the global memory shortage.

Kelington's tender book currently stands at RM900mil, spread equally across Malaysia, Singapore and China.

"Being regarded as a preferred vendor among large MNCs, the group is in a favourable position to benefit from various on-going expansions by the likes of WD Penang (announced RM2.3b investment), Micron SG (new fab construction), and Lam Research," the research house added.

Meanwhile, Kelington's LCO2 plant is expected to be halal-certified in a month's time, which will further increase demand as the group penetrates the food and beverage industry.

The plant utilisation has recently increased to 100% from 50% due to strong orders from Singapore, leading to higher average selling prices.

Kelington's operations in all 17 sites in Malaysia are on-going despite the movement control order as it has received approval as an essential service.

Kenanga maintained "outperform" on the counter while raising its target price to RM3.10 from RM2.30 based on a higher FY21 forecast price-earnings ratio of 32x.

"We believe KGB deserves to be traded at a higher multiple due to its exclusive exposure to the front-end semiconductor boom, which is very rare given that Malaysia is a back-end centric market," it said

SEE_ Research 

Latest update on the 

Short Term 

Target Price RM 1.50 to RM 1.60 

 ===================================================================

KELINGTON GROUP BERHAD ("KELINGTON" OR "THE COMPANY")
- AWARD OF CONTRACT WORTH APPROXIMATELY RM50 MILLION

-A+A

 

 

KGB

1.170

+0.07 (+6.4%)

MULTIPLE PROPOSALS KELINGTON GROUP BERHAD ("KELINGTON" OR THE "COMPANY") I. BONUS ISSUE OF SHARES; II. ISSUANCE OF FREE WARRANTS; AND III. DIVERSIFICATION (COLLECTIVELY REFERRED TO AS THE "PROPOSALS")

KELINGTON GROUP BERHAD

Type	Announcement
Subject	MULTIPLE PROPOSALS
Description	KELINGTON GROUP BERHAD ("KELINGTON" OR THE "COMPANY") I. BONUS ISSUE OF SHARES; II. ISSUANCE OF FREE WARRANTS; AND III. DIVERSIFICATION (COLLECTIVELY REFERRED TO AS THE "PROPOSALS")
The terms used herein, unless the context otherwise stated, bear the same meaning as those defined in the earlier announcements in relation to the Proposals. We refer to the earlier announcements dated 6 April 2021, 23 April 2021, 27 May 2021, 17 June 2021, 2 July 2021 and 5 July 2021 in relation to the Proposals. On behalf of the Board, UOB Kay Hian wishes to announce that the Board had on 6 July 2021 ("Price-Fixing Date") resolved to fix the exercise price of the Warrants at RM1.38 per Warrant ("Exercise Price"). The Exercise Price represents a premium of approximately 29.03% to the 5-day volume weighted average market price ("VWAP") of Kelington Shares of RM1.0695 per Kelington Share up to and including 5 July 2021, being the last trading day before the Price-Fixing Date. Further, on behalf of the Board, UOB Kay Hian wishes to announce that the Board, had on 6 July 2021 executed the deed poll constituting up to 215,082,317 Warrants to be issued pursuant to the Issuance of Free Warrants.   This announcement is dated 6 July 2021.

===========================================================

KUALA LUMPUR (April 6): Kelington Group Bhd has proposed a one-for-one bonus issue of up to 322.62 million new shares. Upon completion of the bonus issue of shares, the company will also undertake a bonus issue of up to 215.08 million warrants on the basis of one free warrant for every three shares held by then.  

The entitlement dates for the bonus issues would be determined later. 

In addition, Kellington, which provides ultra-high purity (UHP) gas delivery solutions to the electronics and semiconductor industry, also revealed its plans to venture into manufacturing, distribution and trading of industrial and specialty gases.

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The expansion is in accordance with the group's business and growth strategy to further enhance the operations and financial performance of the industrial gases business, which could potentially provide sustainable revenue and income stream moving forward.

The group said the proposed bonus issues are to reward the shareholders, improve trading liquidity and encourage greater participation by investors.

For illustration purposes, assuming that all warrants are exercised at the indicative exercise price of 97.5 sen per warrant, the company will raise gross proceeds of up to approximately RM209.71 million.

The proposals are expected to be completed in the third quarter of 2021.

Kelington dropped three sen to close at RM2.11 today, valuing it at RM678.16 million.

By Kathy Fong

 Remarks 

A.  LCO2 = Liquid carbon dioxide

B. SMIC = Semi-conductor Manufacturing International Corporation, China

C. TSMC = Taiwan Semiconductor Manufacturing Company, Taiwan

D. UHP = Ultra high purity

Thanks for reading and see you in the next post.

THE ABOVE IS NOT A BUY OR SELL CALL AND IS ONLY A PERSONAL OPINION, WRITTEN AS ARTICLE FOR SHARING PURPOSES TO KLSE COMMUNITY MEMBERS.

DISCLAIMER: Investment involves risks, including possible loss of investment and other losses. 

This article and charts are provided for information only and should not be construed as a solicitation to buy or sell any of the instruments mentioned herein. The author may have positions in some of these instruments. The author shall not be responsible for any losses or profits resulting from investment decisions based on the use of the information contained herein. If investments and other professional advice is  required, the services of a licensed professional person should be sought.

 ISSUED BY SEE RESEARCH 

(SENSING EAGLE EYES RESEARCH)