Kelington Group Bhd's wholly-owned unit, Kelington Engineering (Shanghai) Co Ltd, has bagged a contract to perform gas hook up works in Beijing, China.
In a filing with Bursa Malaysia, Kelington said the 123 million yuan contract (worth approximately RM80 million), was awarded by China's largest semiconductor foundry.
Now with chip shortage and demand more than supply, manufacturer is expanding and Kgb is in good position to obtain lots of projects with good profit margin..
Given that the orderbook replenishment falls within our expectations, we made no changes to our earnings forecast, pending their 1Q22 quarterly results release in coming weeks.
Therefore, we maintained our BUY recommendation on KGB with an unchanged target price of RM2.10. We derive our target price by assigning targeted P/E multiple of 28.0x to FY22f EPS of 7.5 sen.
The assigned targeted P/E multiple is slightly above with the valuations of the technology sector that is trading at 25.3x for 2022f. The slight premium is justifiable due to KGB’s niche business model.
Risks to our recommendation and target price include weaker-than-expected targeted orderbook replenishment of RM700.0m for FY22f.
Any slowdown in semiconductor sales may dampen the large scale UHP projects delivery to China and Singapore, given that the UHP segment plays an integral role towards the total revenue contribution and earnings growth.
WASHINGTON DC: Malaysia is expected to garner RM14.62 billion in new investments from the United States (US) following the Trade and Investment Mission (TIM) led by Senior Minister and International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali.
Azmin said many US-based companies had expressed their commitments to expand their operations and footprint in Malaysia during his 10-day US TIM which began on May 8.
"We are going to make some major announcements in the next few days in terms of the total new investments that have been committed by these companies," he told Bernama and TV3 reporters here, Tuesday.
Thus far, Azmin had met several high-technology (hi-tech) companies such global semiconductor company Texas Instruments Inc. and global materials supplier to the electronics assembly and semiconductor packaging industries Indium Corporation, and he is scheduled to engage with more hi-tech industry players on his next visits to San Francisco, Seattle and Los Angeles.
KGB contract in Sarawak too cheap and cannot deliver as such counter proposal deviation... Chinaman will not let KGB loose... just like the joke of the prostitute in the corner selling cheap cheap cheap.!!! Can someone confirm this rumours.??
The semiconductor sector continues to be favoured by analysts, especially the outsourced semiconductor assembly and test (Osat) providers.
The Osat companies have got it going with a strong sales pipeline and earnings growth prospect, anchored by their expansion roadmap and robust balance sheet, said TA Securities Research in its latest report.
“We also expect them to continue benefiting from the global structural growth in chip demand, alongside the ongoing acceleration in digitalisation and proliferation of secular technology trends like 5G, artificial intelligence, cloud computing, Internet of Things, robotics and vehicle electrification,” it said.
It maintained its “overweight” stance on the technology sector.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
vale0111
160 posts
Posted by vale0111 > 2022-05-10 18:03 | Report Abuse
keep an eye before making any decision