Actually, if possible, I hope the management can totally change into green technology segment in the future. This is because green technology segment can generate stable income but engineering segment usually affected by the unstable costs.

Besides that, if KNM totally changes to green technology company with stable profit record, I can say its share price can shoot to at least RM 1 because company related to green technology normally has higher P/E ratio (normally P/E 20). However, engineering company usually has lower P/E ratio. (normally around P/E 10).

Besides that, in fact, I am also optimistic for KNM's future and I expect KNM can also report profit in financial year 2020.
There are also some reasons for supporting my opinion:
1. The management of KNM wants to change KNM's business segment from Oil and Gas segment to Green Technology segment. (In short term, its management wants 50% of KNM's revenue was contributed by green technology.)
2. 3rd stage of Ethanol of KNM has commenced and expected to generate profit beginning from financial year 2020.(If 3rd stage of Ethanol has commenced, this segment is expected to contribute 15% of revenue to KNM)
3. KNM's product - Heat Exchanger. Heat Exchanger Market are expected to grow around 6% each year in the world.(Especially in China)
4. Oil price can be expected to remain $ 60 in the long term. (If OPEC maintain the oil price)

Risk exposure to KNM in the future.
1. Although KNM's management want to change KNM's business segment to Green Technology, it is still a contract-based company in the short term.
2. Oil price dropped sharply in these few days ( It may impact the performance of 1st quarter report of 2020).
3. In the short term, if KNM does not get any contract, it may suffer loss again.

In fact, from annual report of 2016 to 2018, I saw the effort of the management to try their best to change the company to green technology segment in order to get rid of the impact on the unstable business segment.(Contract-based company).

In my opinion, I don't think KNM paid around RM 1.7 billion for Borsig was a good deal. It paid the large amount for acquiring Borsig but it can't generate significant profit by using Borsig.

In fact, I feel optimistic for this company because the company wants to change the segment to green technology. If KNM really achieve its expectation in the future, it means it can generate very stable earning. As long as KNM has a stable earning record, it will attract the long term investor to enter into the counter. Then the stock price only can get the support.

In my opinion, I thought the performance of KNM in 4th quarter report of 2019 can remain profitable.
There are few reasons for me to assume 4th quarter of 2019 for KNM can be profitable:
1. Oil price from September to December of 2019 remain above $60 or even touch $70.
2. KNM bagged a lot of contracts in financial year 2019 and these contracts were estimated to contribute this 4th quarter report of 2019.
3. KNM already reported a huge impairment loss of asset in 2018 so there is no reason for it to reported again a huge impairment loss of asset again.(Unless the management report the goodwill as impairment loss)
4. Ethanol segment is expected to contribute stable income.(I expect)

Risk exposure for 4th quarter report of 2019 to make loss
1. Foreign exchange loss because Thai baht remain relative higher rate to ringgit. (KNM has around RM 330 million denominated in Thai baht.)
2. Operating cost. (If look at the past annual report of KNM, it many times recorded loss due to higher operating cost.
3. Report a huge impairment loss of asset such as goodwill. (I thought this risk is quite small because the management actually can report the impairment loss together at the financial year 2018.)