Forget about 3.00 lah...this will never happen

More projects to come i heard

7164 KNM KNM GROUP BHD
OTHERS

OTHERS

Award of Contract to KNM Process Systems Sdn Bhd amounting to RM17.480 million

You are advised to read the entire contents of the announcement or attachment.

To read the entire contents of the announcement or attachment, please access

the Bursa website at http://www.bursamalaysia.com

I suspect KNM-WB

Mother is running as normal with higher accumulation by potential buyers,


but KNM-WB, is speculated by another party to take advantage of Mother.

KNM price for consideration, Before choosing the right TP as follow

Based on it 1st quarter result with profit, assuming we put PER 15 and the fair price should be at RM 0.35

Because of its future growth and we forecast a continue return with profit and we should have based on RM 0.35 for the minimum price.

Meaning to say, RM 0.35 has just started, and we should forget about the past any prices below RM 0.35 and we must look forward the possible RM 0.35 to RM 1.00

MY TP IS SET AT RM 1.00

Not forgetting also

IMPORTANT!!!!

Recovery of OIL AND GAS INDUSTRY

Everything will be back to normal and recently the awarding of contract is an evidence. More and More contract will come.



THE LEGEND OF KNM IS BACK

Not forgetting Impress Ethanol 72% owned by KNM in bangkok. This unit will run full capacity in 2nd quarter of 2020 according to AGM. Which is 500,000 Litres of ethanol perday. Currently is on 200,000 litres capacity per day and the price for ethanol is RM 2.90 per litre.

500,000 litres x RM 2.90 per litre x 365 DAYS X 72% = RM 381 Million revenue.

Even though, UK Peterborough Green Energy has yet to kick off for construction. If KNM intends to sell its unit WTE in UK with compound approved land and proposal. Easily can sell at RM 500 million. Unless KNM kick off the project and complete with RM 1.9 Billion and pledge to finance institution or go raising fund through IPO easily can get RM 2.2 - 2.5 Billion.

With one borsig can settle all debts, somemore got extra cash nearly RM 1 Billion

If this RM 1 Billion refund to share holder, each share can get RM 0.384

Today, KNM is at RM 0.365, Which means.....this yet to include other assets

Borsig can make RM 200 Million yearly profit for KNM

if Based on PER 15 (Taking into consideration of strong revenue growth yearly of 10-15%)

Borsig is worth of RM 3 Billion

RIKO....We have been talking about Borsig since 7 cents, but you didn't follow our rhythm, apparently expected to go lower than 7 cents.

RIKO.....You are in a mess...don't just tembak buta ya.....later kena people fX Backside..

Please do not put high hope on silly price as you mentioned. My expectation to KNM price as follows:


RM 0.35 is for sure with average 1st quarter report base on PER of 15

RM 0.40 to RM 0.60 is for sure because the recent awarding of many contracts and recovery of oil and gas industry.

RM 0.65 reflecting on KNM NTA

RM 0.65 to RM 1.00 If the above mentioned are continuing, provided 2nd quarter report still profitable and more and more intuition, group investment will be In which has already met their investment criteria with increase of revenue and 2 consecutive quarterly profit.

RM 1.00 to RM 1.30 if the company intends to exercise the warrant by pushing mother share up. so that the warrant holder will subscribe to mother share.

RM 1.30 to RM 2.00 depending how far KNM can generate its profit and revenue. with RM 2.00, KNM Market capital is already RM 5.2 Billion i think is not possible to achieve within the next 2 year. unless KNM can generate yearly profit of RM 347 Million basing on PER 15

Let's put our hope to surpass RM 0.40, 0.65, If any positive news with 2nd quarter profit by end of August 2019, then we should hold until RM 1.00

In fact, we are not buying KNM shares, in fact, we are buying Borsig Germany, FBM Hudson italianna Italy and Impress ethanol Thailand.

With these 3 assets easily worth of more than RM 3.5 Billion

Cassava is very easy to grow with dry condition of soil and it is very cheap to maintain. In fact Nigeria is the biggest having plantation of cassava globally but for Thailand is the biggest exporter.

Impress Ethanol KNM has no problem to get feed material like cassava to produce ethanol. Also, KNM has their own plantation land with 80 over acres land surrounding the factory to plant cassava.

Thailand is the world largest cassava (ubi) exporter which contributes 60% globally. Cambodia and myamar is about 20% with 3 countries combined together will be 80% worldwide.

Impress ethanol - KNM ethanol factory is located 100km away from Cambodia and no problem to get an easy source for such raw material to produce ethanol.

KNM ethanol with hightech equipment is producing 99.99 a standard purity ethanol and 40% of their ethanol with fixed supply contract to Oil and gas industries for 5 years.

Today may be no show

There is a rumour saying that EPF has increased its stake in KNM, Many are saying...i am not sure.....wait for the real announcement is better

IDSS Short selling is suspended yesterday evening

Borsig is doing well in china. Borsig yearly increasing revenue of 20% with average profit 19%

KNM is testing to break 0.30, if it can break 0.30, Next tp is 0.36.

IDSS suspended? sure bo?

Just now a minor correction was due to IDSS. Don't know who did IDSS....Sure kena kill later at 4pm

Jasontan777...no UMA because...KNM is profitable and it is undervalued. It reflects the actual flow in going up.

IDSS all will die lah

IDSS will buy back today before 4pm...forced to buy back...KNM will jump after 4pm

Right Now, KNM yearly revenue is about RM 1.5 Billion to RM 2 Billion which is think if not to far to achieve the goal.

What we are hoping that:
1) KNM must reduce its operational cost and increase the productivity and KNM has put on target to achieve this.

2) To increase the recurring income such as WTE and ethanol and KNM is working on this, Ethanol will in full operational with 500,000 litres daily production next year.

3) To secure more contracts in oil and gas or petrochemical industries globally and i foresee is very positive.



What we expect from? Increase revenue as follows:

1) Borsig 100% subsidiary - recurring supply parts with long term contribution of RM 1.25 Billion (Base on its record yearly increment of 20% sales) this is for sure. We expected Borsig will hit RM 1.5 Billion of revenue by end of 2020


2) Impress ethanol thailand 72% subsidiary - If full operational 500,000 litres with 99.9% a standard purity of ethanol is selling at RM 2.90 per litre = RM 2.90 X 500,000 litres X 365DAYS X 72% = RM 381 Millon of revenue by end of 2020

3) WTE - Waste to energy - We still have to look into this as whether KNM is in her position to become the operator or specialist contractor. So far, i can not foresee this because to become the operator will have to wait and take time after 3 years. If KNM manages to get on contract basis to build WTE, then, we have a very big high hope to generate some contract revenue and we are hoping that KNM will secure more contract from the government of Malaysia being a top market player.

4) As of today within the first six months since the beginning of November 2018 to June 2019 , KNM has nearly secured RM 500millon worth of contract and i expected another RM 500 Million to be in for second half of 2019 and this will generate in a total of RM 1 Billion for contract basis basing on the recovery in O&g market.

I estimate KNM group will generate RM 2.88 Billion (2.5billion at least)of revenue by the end of 2020


Looking forward, when we talk about RM 3.00 for KNM, i think it is possible if KNM provided WTE can come at the right time within the short period.

I be frank to you, if you are talking about RM 3 For KNM. The moment KNM if has reached RM 3.00, its market cap will reach RM 7.76 Billion which is about a little big higher than YINSON and 2 times lower than Dialog.

In order to achieve a reasonable RM 3.00 which you think it is going to be, then KNM must atleast make RM 513 Million of profit per year taking into consideration of PER 15.

Let's say for PER 20, at least RM 385 Million profit per year.

I would say RM 385M - RM 513M profit making per year only can achieve RM 3.00 for KNM

With this, KNM must have at least RM 2.1 Billion to RM 3 Billion revenue per year.

The legend of KNM is back, be ready

Seriously, KNM is now testing to break 0.30, Once the resistance is broken, it will definitely fly without wings.

KNM Being an energy and engineering stock which has a similar scope capacity like dialog and yinson. When these 2 companies are profitable, market will take a reference for similar industry to refer and judge KNM. Now, the transformation from contract base to recurrent base has made people start to think of KNM therefore will be outperformed on day just like dialog and yinson is doing.

YINSON
Market cap = RM 6.66 Billion
Revenue per annum = RM 1 Billion

Dialog
Market cap = RM 18.32 Billion
Revenue per annum = RM 3 Billion

KNM
Market cap = RM 0.66 Billion
Revenue per annum = RM 1.5 Billion


Let's forget about the profit first, it will turn better. If we look at the revenue against its market capitalisation. KNM is so much cheaper.

Borsig group a 100% subsidiary of KNM of yearly increasing revenue 20% minimum every year and achieving 19% profit of revenue.

Impress ethanol a 72% subsidiary of KNM will increase its production of ethanol from 200,000 litres to 500,000 litres in June 2020. Basing on RM 2.90 selling price for ethanol per litre. Try to imagine 500,000 litres x RM 2.90 x 365 days x 72%

The above excluding the recent contracts and the coming up more contracts for petrochemical industries. Not forgetting the WTE projects in UK and lately our government is very keen to build at least 1 WTE in every state and a proposal is being submitted to the house of parliament according to YB Zuraida.

We know many of you disposed off at 0.225 and wanted to wait it goes down and grab back. Because your mind is already set with 7 cents in the history and you wish to buy back at this price. Just forget about it, this will never happen.

Sorry....Apparently, KNM is on the right track and keep moving forward with high revenue and lately the recovery of oil and gas segment.

James Ng is only suitable for those who are interested to know the summary of the stock. He is well prepared basing on the news and report. About analyzing the stock, in fact he is not qualified as he doens't know head and tail of the company including the subsidiaries etc.

He should not have commented KNM is at high side and with troumendous of a sudden increase of KNM price on last Friday. Because if we compare with 7 cents the lowest with RM 700Million 4th quarterly loses against the recent 1st quarter with profit which is totally different.

We need to forget about the past 7 cents to 15 cents. Unless KNM still in a loss. Apparently, KNM is not on the right track and keep moving forward with high revenue and lately the recovery of oil and gas segment.

Forget about the right issues. I went for AGM and the board of directors have no intention to go for right issue. They also mentioned about raising fund and reducing company's borrowing can be done by listing up Borsig, whether or not they want or don't want only.

May be win arbitration........but europe at night how to win?

news don't come first.....up first....

If this is real......no need to say already...just buy

With high volume must be institution buying like EPF....if EPF buying....sure WTE project will give to KNM. Because EPF wishes to make profit from dividend and distribute to account holders.

Institution starts buying....buy looking at its MACD above, Distribution / accumulation all passed

don't be so childish lah....you thought today make love tomorrow get baby born...kah......

Base on what i calculate the value for borsig as follow

Revenue for borsig per year RM 1.25 Billion
Profit 19% according to annual report = RM 237.5 Million before tax

Say about PER 10 on before tax
RM 2.38 Billion

Say about PER 15 on before tax
RM 3.56 Billion

share buy back will not involve alot. As of today about 1% of total if i am not mistaken.

Most importantly, increase in revenue, new business diversification model, improvement in O & G globally, WTE opportunity ..these should have enough to boost the profit.

Ya....better go and buy more knm now. otherwise.....next selling price will be 500 million euro already.

damien...they passed all resolutions, means....passed lah

THE COO of the company managed to answer all questions being raised up and the given answers are acceptable and reasonable. Except the question regarding to share price and the previous right issue with FREE warrant which is going to expire with ex-price of RM 1.00.

I can only say, subscription with right issue at wrong timing. Because 5 years is really short for conversion. Moreover for the past 3 years was a bad year for Oil and Gas and now we only can see the sun. Unfortunately, time is running short. Unless, KNM manages to hit above RM 1.00 which i think is not possible within the next 12 months.

Those are holding KNM-WB, better let go and buy mother share. When KNM hit RM 1.00 is already 500%, but if mother hits RM 1.00, The value of KNM-WB is still zero on expire date.

Question on how stable the current financial situation of KNM especially dealing with debt.

Replied in AGM
Yes, it is at the comfortable level as you can see, most of the financial institution is willing to grant a credit facility based on the inflow and outflow of turnover. Otherwise, Knm will not gain a support credit facility if the financial condition does not comply with.

Nothing to move up. At least price is stable. Wait more project announcement and most importantly coming quarter results.

I went there

Outcome of meeting as follows:

1) The compliance environmental stage is on going. To kick off General preliminaries work at Peterborough WTE on July 2019. Targeted construction stage within 6 months for infrastructure work and another 30 months to complete the whole WTE. The return of investment will take 8 years with a concession period of 25 years.

Note: I think we can't benefit the incurring income within a short term period but it does report the contribution of revenue for building the WTE in the group.

2) Thailand Impress Ethanol - On going expansion for phase 2 (300,000 litres perday) and targeted completion will be on 2nd quarter 2020.

Note: The recent Private placement more or less would help in financing the project and 40% of purity 99.99% ethanol has got a potential buyer for a period of 5 Years. I can see this will generate an immediate income to the group.

3) Reported the Borsig is doing well with heat exchanges system and will continue an increase of revenue to the group.

4) To foresee improvement of Asia segment with recent awarding of contract expected to increase due to recovery of petrochemical industries in relation to Oil and Gas sector.

5) Malaysia WTE - reported that will not let go any changes of getting WTE in every state in Malaysia under new government. Also informed that KNM is leading the market in WTE would have an advantages and priorities.

6) The previous financial losses are a non-cash losses. Also informed that The recent production lines are busy with new contracts.

7) Minority shareholders required directors to cut their own salary on willingness for poor performance.