Dividend is coming!

KGB does offer construction service under GC

Newbie. Within core biz. A turnkey project including uhp, gc and etc

40m project

82

Malaysia Plantations 12MP: Accelerating the circular economy Opportunity to help green and grow the economy The oil palm sector has a role under the 12MP (2021-2025) to accelerate the circular economy initiatives by turning waste into energy and higher value biomass products while helping to reduce overall GHG emissions. The use of green fuel via higher B30 mandate at the end of 12MP may just be possible if a carbon tax is introduced to provide sustainable funding to the government. Farmers are expected to accelerate the adoption of modern technology (ie smart farming) to raise productivity. Stay POSITIVE on the sector. Top BUYs are KLK, SOP and BPLANT. Biomass and biogas potentials identified On average, ~80 million dry tonnes of biomass were produced annually from oil palm plantations, of which five states, namely Sabah, Sarawak, Johor, Pahang and Perak accounted for 85% of the palm biomass. During the 11MP, a total of 29 biomass-based projects with investments amounting to MYR1.0b were implemented. About 15% of the available biomass was used. The government recognizes the biomass potentials while cognizant of the existing issues and challenges to achieve higher export of biomass-based products. Under the 12MP, a national biomass policy will be formulated as a comprehensive framework to ensure the sustainable development of the industry and unlock its economic potential. And on the renewable energy (RE) front, apart from large hydro and solar projects, focus will now be on increasing the contribution from other renewable sources, such as biomass and biogas (ie generated from palm oil mill effluent (POME) waste). Under the 12MP, a new mechanism for green energy will be explored to encourage corporate consumers to buy energy directly from RE generators to meet their ESG obligations. Carbon tax to help raise biodiesel mandate to B30? To promote greater usage of cleaner fuel, the plan is to raise biodiesel blend for the transportation sector from B15 to B20 (in stages), and eventually to B30 at the end of the 12MP. As for the industry sector, the biodiesel programme will be expanded from B7 to B10. Besides the reluctance of engine manufacturers to warranty the use of B30, the industry was skeptical of the government’s commitment to fund the higher mandate given the wide POGO (palm oil-gas oil) spread (28 Sept: USD641/t). Unlike Indonesia which collects palm oil export levy to fund its B30 mandate, Malaysia lacks similar sustainable funding mechanism. Under the 12MP, a feasibility study will be conducted on carbon pricing, such as carbon tax and the Emission Trading Scheme. A carbon tax may just be the solution to address the biodiesel funding gap. Smart farming – accelerating adoption of technology A dedicated smart farming fund will also be introduced to support the acceleration of modern technology adoption in the agriculture sector. For instance, the application of precision agriculture technology in plantations under FELDA through geospatial information systems will be rolled out to improve operational efficiency. This initiative will enable FELDA to utilise detailed plantation data including tree counts, vacant areas and tree health indicators to optimise resources use.

Olom fpso from 85k bpd to 100K bpd.

https://www.google.com/amp/s/www.oedigital.com/amp/news/490873-eni-brings-online-another-oil-field-in-angola-via-armada-olombendo-fpso

Biodisel part of 12th mp plan.

https://www.google.com/amp/s/www.theborneopost.com/2021/04/13/lee-greater-miri-development-plan-in-the-offing/%3famp

Look beyonds palm oil. Miri estate gonna boom with more development fund going into miri

https://www.klsescreener.com/v2/news/view/884021

A tech company like frontken

Pls check back all my comments for KGB. While many said this not recurring that not recurring over the past

Halal cert is important. The group want 30% of biz from industrial gas. GPM 30% double from other segment.

The group also want to be a bigger player so they will continue to targer bigger project

Firing on all cylinders China operation has been uninterrupted despite the rise in recent Covid-19 cases. SMIC, which currently makes up c.25% of its outstanding order book, is on track to have all its work completed by end-2021. Elsewhere, KGB is currently tendering for a separate fab expansion contract, and will look forward to tender for the 2022 hook up package to replenish its order book from SMIC. Malaysia operation (which accounts for 30% of revenue) was the most impacted in the recent concluded 2Q21 results, seeing a 14% YoY revenue decline. With the relaxation in lockdown measures, its Malaysia operation is now running at 100% capacity since late August and should see revenue normalise in 4Q21.

We estimate the LCO2 plant utilisation to rise to 75% in 2022 through securing 1-2 MNC clients in the F&B industry KGB has successfully secured the halal certification from JAKIM after much delay due to the Covid-19 outbreak affecting its application process. KGB had intended to secure the certification last year, in time to negotiate with potential MNC customers upon the expiry of its contract with their current supplier, Linde. However, we gather that a couple of its F&B customers have already signed a renewed 3-year contract with Linde which could complicate a potential offtake agreement. Nevertheless, management remains confident that MNCs will resort to using dual suppliers to mitigate the single supplier risk. We believe that KGB can achieve an average 75% utilisation rate in 2022, and the need to expand into a second LCO2 plant in 2023 could be a re-rating catalyst. We have yet to factor in the second plant’s contribution into our forecasts.

3/9/21
Kelington (KGRB MK) BUY (maintain) Price Target: RM1.50 Up/Downside: +13% Previous Target (Rating): RM1.42 (BUY) The year has yet to end  Kelington’s (KGB) outstanding order book has grown to RM402m while its tender book stands at a record RM1.5bn  China and Singapore operations are running at optimum efficiency. Malaysia operation has resumed 100% capacity since August 2021 following the easing of the lockdowns  We raise our 2022-23E earnings by 3-6% imputing a higher contract replenishment. Reiterate BUY rating with a higher target price of RM1.50 Expect some contracts to materialise from its RM1.2bn tender book KGB has secured a total contract value of RM264m in 8M21, representing 54% of the wins last year and bringing the current outstanding order book to RM402m. Its prospective tender book has hit a record high of RM1.5bn (from RM900m as of end December 2020) in August. We gather that the tender results for a few of the Ultra High Purity (UHP) bids are expected to be finalized by end-2021, which could help with KGB’s 2022 earnings. Taiwan (which make up small 2% of order book) has gained traction lately after securing contracts worth <RM10m. The UHP segment will continue to be the main earnings growth contributor moving forward. Secured halal certification for its LCO2 plant The utilisation rate for the liquid carbon dioxide (LCO2) plant fell to 40% in 2Q21 (1Q21: 60%) as both domestic and export market demand weakened. Domestic construction activities were halted amid the lockdown measures, and border restrictions have affected export sales. With the recent resumption of economic activities, the plant utilisation has returned to the 50-55% level. KGB has received approval for its halal application from JAKIM, which is a positive moving forward as it would allow KGB to start marketing its product to larger F&B MNC clients.

Affin hwang reports dated 3/9

KGB has received
approval for its halal application from JAKIM, which is a positive moving forward as
it would allow KGB to start marketing its product to larger F&B MNC clients.

Osat not ems. Their esg compliance very high especially inari.

Shared the reporr link in klsescreener. Tq

In a solid balance sheet
position
Undervalued. BUY!
While SOP has revised down its FFB output guidance for FY21E, it is still
anticipating better HoH output in 2H21. And SOP will likely continue to
enjoy the high CPO ASP thus far in 2H21 given its minimal forward sales.
We are keeping our earnings forecasts, and TP of MYR5.80 on unchanged
14x FY22E PER peg, its 5Y mean. It trades at just 8x FY21E PER and
unadjusted EV/ha of MYR28,000 (near replacement cost). BUY.
Briefing takeaways
We hosted a briefing for SOP last week. Key takeaways: (1) SOP has
minimal forward sales. It will continue to reap the benefits of high spot
CPO prices presently; (2) FY21E’s FFB output target is now revised down
to 1.25m-1.30mt (MKE: 1.32mt) from 1.40mt due to shortage of
harvesters. This revised forecast translates to 1H:2H output ratio of 47-
49:51-53; (3) Overall, SOP is experiencing a 30-35% shortage in workers;
(4) It has decided to stop its replanting plan for 2021 (2020: 419 ha) to
capture the high CPO ASP; (5) SOP expects to be in a net cash position by
year end (June-21: 6% net gearing); (6) With improving balance sheet
and limited capex planned (FY21E: MYR100m-150m), it will likely
establish a dividend policy soon to reward shareholders; (7) Downstream
margins will be more challenging in 2H21 compared to 1H21.
Major shareholder has further raised its stake to 46%
SOP’s major shareholder, the Shin Yang Group, has further raised its
stake to 46.4% in Apr 2021 (May 2020: 45.3%; Mar 2019: 43.3%) whereas
the State Government of Sarawak has maintained its 2nd spot at 28%.
SOP is clearly undervalued
Although we doubt there is any impending plan to privatise SOP, the
gradual accumulation of stocks by the major shareholder is a testament
of SOP’s undervaluation. We believe the formulation of a generous
dividend policy will help to re-rate SOP’s equity value over time. The
market is currently attaching zero value for the property development
potential of its 4,858ha Taniku Estate, located at the fringe of Miri city.

Sarawak plantation no where near SOP. SOP is an intergrated plantation company. When CPO hit 2900 3000 theu can still make 250M and above. Looking at this number. SOP is rank no 6 in plantatiom industry. So its about whether who want to drive this stock price

What to do enning22.

Globalfoundries awarded 45M to KGB in Aug21. Now another 49M to KGB. More to come

Key takeaways(cimb)
● The group attributed the lower qoq sales from RF division in 4QFY6/21 mainly to lower
workforce availabilities, which were capped at 60% during the full movement control
order (FMCO) implementation in Jun 21. However we expect a stronger qoq RF
division performance in 1QFY6/22F, in view of higher workforce availabilities, given
that Penang has moved into Phase 2 of the national recovery plan on 7 Jul 2021,
which allows the group to operate with a higher 80% workforce capacity. In addition,
management highlighted that over 90% of its workforce in Malaysia has completed two
doses of Covid-19 vaccine as at early-Aug 2021.
● We expect a higher contribution from value-added processes, such as electromagnetic
(EMI) shield coating for the RF division, in FY22F, following positive feedback from
Inari’s customer. The group expects a higher percentage of RF chips to undergo EMI
shield coating process in FY22F. Inari is allocating RM100m capex in FY22F, mainly
for three new system-in-package lines, eight EMI shield systems and wafer processing
equipment.
● The group is upbeat about the new integrated system for its module division at P55, a
new 50k sq ft 5-storey building extension, located next to P13 in Bayan Lepas. The
group is preparing for the pilot line to qualify for assembly and testing of automotive
power module for a new US customer. We estimate this could be a new growth engine
for Inari — contributing 15% of the group’s revenue within the next three years.

KGB warrant has 5 years duration vs 3 years
KGB is building their recurring incomes which is why funds are into it

“Semiconductor players will always be our major clients. What we love about semiconductors is that the industry has to keep expanding as technology evolves. It is not the typical manufacturing industry where you build a factory and it could last for 20 years. For semiconductor firms, they have to keep investing in new wafer fabs, which means more projects for us. It is like a forever sunrise industry, because we are always chasing them,” says Ong.

Different production line will require different hook up to support

Its about technology changes or production line expansion both required UHP...whenever there is a change in product due to different process new UHP will come in

M&A + organic....sizeable...double top and bottom line

Dawchok...u play again after 7min

I watched live version

In uob research report. It stated that their management is targeting double up top and bottom line by 2022. However, kc lau said during bursa conference that they want to double their top line within 3 yrs...

https://focusmalaysia.my/leveraging-repeat-customers-the-awesome-kelington-groups-experience/

The Board of Directors of the Company is pleased to announce that Kelington Technologies Sdn Bhd (“KTSB”), a wholly-owned subsidiary of Kelington had on 14 July 2021 received an award of contract from Stolthaven (Westport) Sdn. Bhd. to undertake the engineering, procurement, and construction works of oil products storage tanks for Tank Pit 8 Expansion Project at Port Klang (“the Contract”).



The Contract value is worth approximately RM50 million subject to the final variation and engineering options.



The Contract is for a period of 15 months commencing from 14 July 2021 and expected to be completed by October 2022.

high oil price doesn't really matter to armada but sustainable oil demand and oil price

Warrant should be around 30 to 35c during 1st listing day

EPF emerged as substantial shareholder

Upstream player cannot bull for long term...only intregrated player can sustain high earnings

Hoe said Sarawak Oil Palms is guiding for RM220 million in capex for FY21, which comprises new refining capacity of 800 tonnes/day (to be completed in 3Q21) and extra 300 tonnes/day for its biodiesel plant expansion (completed by end-2020), on top of the usual upstream maintenance — she revised FY20-22 earnings forecasts by 4-13%.
7 Jan 2021 RHB...

https://www.theedgemarkets.com/article/india-removes-restriction-import-refined-palm-oil

8. Low cash balance not a big deal. With pre-existing debt facilities yet to be drawn down from, as well as numerous debt offers from banks, the group believes that it will not run into significant issues with its current cash holdings.

unbilled sales 266m as at 31/3/2021 compared to 245 as at 31/12/2020

Ruili Integrated Circuit Co Ltd's

sign of competency

not just SMIC in china, they secured 30M+ project from china largest memory chip company

https://farmpolicynews.illinois.edu/2021/06/biden-administration-reportedly-considering-rfs-relief-for-oil-refiners/

pls share ya, i failed to registered eagm in time.

https://www.klsescreener.com/v2/news/view/840075