KGB’s 9MFY23 results beat expectations on margin expansion stemming from account finalisation of a turnkey job and accelerated billings from high-margin ultra-high purity gas system projects. We raise our FY23-24F net profit forecasts by 45% and 53%, respectively, lift our TP by 53% to RM3.28 (from RM2.15) and reiterate our OUTPERFORM call - Kenanga Research 24112023.
Informatively , in their speciality gasses business of carbon dioxide there is no listed companies in KLSE , whereas their key business is U H P ( Ultra High Purity gasses ) ; his the key clients are (i) S M I C Semiconductor Manufacturing International Corporation (SMIC) is a partially state-owned publicly listed Chinese pure-play semiconductor foundry company. It is the largest contract chip maker in mainland China.
SMIC is headquartered in Shanghai[4] and incorporated in the Cayman Islands.[5] It has wafer fabrication sites throughout mainland China, offices in the United States, Italy, Japan, and Taiwan, and a representative office in Hong Kong.[6] It provides integrated circuit (IC) manufacturing services from 350 nm to 7 nm[7] process technologies.
State-owned civilian and military telecommunications equipment provider Datang Telecom Group as well as the China Integrated Circuit Industry Investment Fund are major shareholders of SMIC.[8][9][10][11] Notable customers include Huawei, Qualcomm,[12][13] Broadcom,[14] and Texas Instruments.[15][12] SMIC expanded in the early 2020s by building four 28 nm process fabs across China as a result of a joint venture with China's state semiconductor fund; the fabs were expected to come online in 2023 and 2024.[16]
(ii) Taiwan Semiconductor Manufacturing Company Limited (TSMC; also called Taiwan Semiconductor)[3][4] is a Taiwanese multinational semiconductor contract manufacturing and design company. It is the world's second most valuable semiconductor company,[5] the world's largest dedicated independent ("pure-play") semiconductor foundry,[6] and its country's largest company,[7][8] with headquarters and main operations located in the Hsinchu Science Park in Hsinchu, Taiwan. It is majority owned by foreign investors,[9] and the central government of Taiwan is the largest shareholder.[10]
Founded in Taiwan in 1987 by Morris Chang, TSMC was the world's first dedicated semiconductor foundry and has long been the leading company in its field.[11][12] When Chang retired in 2018, after 31 years of TSMC leadership, Mark Liu became chairman and C. C. Wei became Chief Executive.[13][14] It has been listed on the Taiwan Stock Exchange (TWSE: 2330) since 1993; in 1997 it became the first Taiwanese company to be listed on the New York Stock Exchange (NYSE: TSM). Since 1994, TSMC has had a compound annual growth rate (CAGR) of 17.4% in revenue and a CAGR of 16.1% in earnings.[15]
Most of the leading fabless semiconductor companies such as AMD, Apple, ARM, Broadcom, Marvell, MediaTek, Qualcomm and Nvidia, are customers of TSMC, as are emerging companies such as Allwinner Technology, HiSilicon, Spectra7, and UNISOC.[16] Leading programmable logic device companies Xilinx and previously Altera also make or made use of TSMC's foundry services.[17] Some integrated device manufacturers that have their own fabrication facilities, such as Intel, NXP, STMicroelectronics and Texas Instruments, outsource some of their production to TSMC.[18][19] At least one semiconductor company, LSI, re-sells TSMC wafers through its ASIC design services and design IP portfolio.[dubious – discuss]
TSMC has a global capacity of about thirteen million 300 mm-equivalent wafers per year as of 2020 and makes chips for customers with process nodes from 2 microns to 5 nanometres. TSMC was the first foundry to market 7-nanometre and 5-nanometre (used by the 2020 Apple A14 and M1 SoCs, the MediaTek Dimensity 8100, and AMD Ryzen 7000 series processors) production capabilities, and the first to commercialize extreme ultraviolet (EUV) lithography technology in high volume.
And a long list of other mutli international companies such as MICRON, Singapore Micron Semiconductor Asia Pte Ltd Micron Semiconductor Asia Pte. Ltd. manufactures memory and semiconductor equipment. The Company offers solid state storage, hybrid memory cube, phase change memory, flash, and other managed devices. Micron Semiconductor Asia serves computing, networking, server, mobile, consumer, automotive, and industrial applications worldwide.
The commencement of our second on-site gas supply scheme in 1Q2024, to supply hydrogen, nitrogen, and oxygen for an optoelectronics semiconductor giant in Kulim, Kedah, will also contribute positively to the group's earnings visibility over the next 10 years.
Comments on Prospects - Q3 Sep 23 Report dd 23112023
The Group continues to enjoy a healthy orderbook replenishment rate across the Ultra High Purity, Process Engineering, and General Contracting Segments. During the 9-month ended 30 September 2023, the Group has secured new contracts amounting to RM858 million in 2023. Including the projects carried forward from the previous years, our total orderbook stood at RM2.56 billion of which RM1.51 billion remains outstanding.
Prospects in the Industrial Gases division remain positive as demand for liquid carbon dioxide (LCO2) increases in tandem with the recovery in economic activities. We are also experiencing growing export demand for LCO2 from Oceania countries. To cater this increased demand, our second LCO2 plant in Kerteh will more than double the production capacity, further enhancing the industrial gas division's financial performance starting from 4Q2023.
Additionally, the commencement of our second on-site gas supply scheme in 1Q2024, to supply hydrogen, nitrogen, and oxygen for an optoelectronics semiconductor giant in Kulim, Kedah, will also contribute positively to the Group's earnings visibility over the next ten years.
Barring unforeseen circumstances, we are confident of delivering a commendable financial performance in FY2023 as we execute our existing orderbook across our key operating markets.
Linde plc is a global multinational chemical company founded in Germany and, since 2018, domiciled in Ireland and headquartered in the United Kingdom. Linde is the world's largest industrial gas company by market share and revenue. Wikipedia
come Q4, KGB net profit for FY2023 will hit RM100 Millions, with higher net margin of 8% and cash above 188 Millions. Lot of interest will be draw onto it.
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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....
charlie chia
2,132 posts
Posted by charlie chia > 2023-10-25 10:13 | Report Abuse
This counter is meant for long term investment, need to hold till next year