KELINGTON GROUP BERHAD

KLSE (MYR): KGB (0151)

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Last Price

2.49

Today's Change

-0.12 (4.60%)

Day's Change

2.47 - 2.61

Trading Volume

4,522,900


18 people like this.

6,074 comment(s). Last comment by waorangsiam 1 day ago

OTB

11,023 posts

Posted by OTB > 2 months ago | Report Abuse

According to my whatsapp messages, foreigners are net buyers in KLSE from 5/2/2024 till 8/2/2024.
Hope for a bull market in 2024.
Hope for a CNY rally in next week.
Good luck.
Gong Xi Fa Cai to all readers here.
Thank you.

Posted by waorangsiam > 2 months ago | Report Abuse

agree with otb!

syuraizat

46 posts

Posted by syuraizat > 2 months ago | Report Abuse

Hope new QR which will come out this February will show profit more than 40 million as new LCO plant resume 100%

gohkimhock

2,941 posts

Posted by gohkimhock > 2 months ago | Report Abuse

based on the last six quarterly earnings, the street estimates that:-

below 15m is considered below expectations
15.1m - 25m is within expectations
25.1m above is above expectations

I am estimating revenue should be above 320m to continue with any uptrend for the future.

OTB

11,023 posts

Posted by OTB > 2 months ago | Report Abuse

I want to see the FBMKLCI index up today on the first day of trading after CNY.
This phenomenon will confirm my belief that 2024 is a bull market in KLSE.
The higher the FBMKLCI index rises, the better will be our KLSE performance.
Good luck and pray hard.
Thank you.

Posted by waorangsiam > 2 months ago | Report Abuse

grow bigger, grow and grow, keep on growing. maybe 1 day it become big chips like inari, penta not only grow in value but also give handsome dividend

Posted by waorangsiam > 2 months ago | Report Abuse

if they can achieve that, still got plenty of room

Markv572421

3,037 posts

Posted by Markv572421 > 2 months ago | Report Abuse

nice to buy this stock steady, recommended.

Zhuge_Liang

2,360 posts

Posted by Zhuge_Liang > 2 months ago | Report Abuse

KGB, breaks new high soon.
High is 2.37.

ChloeTai

1,058 posts

Posted by ChloeTai > 2 months ago | Report Abuse

For sure it will (break new high). I think KGB will release its 4th quarter earnings on the last trading day of February. It is expected to be better than the 3rd quarter results.

Posted by waorangsiam > 2 months ago | Report Abuse

https://kelington-group.com/wp-content/uploads/2023/12/20231130-Kenanga-Conviction-Call-Update.pdf

interesting analysis from kenanga.

FYE Dec (RM m) 2022A 2023F 2024F
Net Profit 55.4 90.4 100.3
EPS (sen) 8.6 14.1 15.6

now cumulative Q3 already 66.92millions. so meaning kenanga tp of 3.28 is base on coming Q4 profit at 23.48million only?

Posted by waorangsiam > 2 months ago | Report Abuse

but 23.48million sound good enough though. maybe can expect more profit in Q1 2024 results releasing in May where the new plant has just been operating in early 2024. "Plant 2, with capacity of 70k tonnes/year or 1.4x of
Plant 1", that 140% is a lot. Still got long way to wait to see a greater results in May.

dawchok

459 posts

Posted by dawchok > 2 months ago | Report Abuse

By HLebroking on 19Feb:
UHP segment to perform strongly, supported by the anticipated rebound in
semiconductor sales (with the WSTS forecasting a 13% increase for 2024) and the China +1 strategy benefiting Southeast Asian (SEA) players like Malaysia and Singapore. With an order book of RM1.5bn as of November 23, KGB is poised to report strong earnings for FY24-25, with additional opportunities for order replenishment in the future, supported by a high tender book of RM2.17bn. Management sees plenty of job opportunities in Singapore, Malaysia, and China markets. This optimism is bolstered by the ongoing expansion pipeline in global semiconductor players such as GlobalFoundries, SMIC, and Infineon, announced in 2023, despite the down cycle in semiconductor sales. This expansion is mainly driven by the China +1 strategy and the prolonged US-China trade war, which has prompted China to invest in its semiconductor capabilities. These events have opened up more UHP contract opportunities, as these gases are crucial for semiconductor fabrication processes such as photolithography and etching.

Second LCO2 plant to come online. To recap, KGB has committed to invest RM45m in setting up its second LCO2 plant (P2) in Kerteh, Terengganu, following the success of its first LCO2 plant which began operations in 2019 and achieved an 80% utilization rate in 1H22. With P2 currently in the final stage of testing and expected to come online soon, the addition of 70k tonnes per year (bringing total capacity to 120k tonnes per year) will boost the group’s FY24 earnings. With P1 currently operating at full capacity, P2 will alleviate this bottleneck, enabling the group to capitalize on the increasing demand for LCO2 in the Asia and Oceania region, given the worsening shortage of LCO2 following the closure of petrochemical plants globally. Additionally, it's worth noting that the industrial gas business offers stable recurring income with a superior margin (industrial gas GPM: 30% vs UHP: 15%).

New wave on the making. KGB is poised to establish a higher high formation, reinforced by bullish indicators. A successful breakout above RM2.40 will spur the price toward RM2.50-2.57-2.68. Cut lost at RM2.09

Posted by waorangsiam > 2 months ago | Report Abuse

Q4 results profit 23.48million will be good enough

Posted by waorangsiam > 2 months ago | Report Abuse

and give nice dividend, enough to make funds and long term investor like me keep it as favorite stock

ChloeTai

1,058 posts

Posted by ChloeTai > 2 months ago | Report Abuse

Today (19.02.2024 Monday) not happy. It is red. Q4 results must be > RM31,668 million. If not, it could drop more. Hope for miracle today. Can the red turn to green? Hopefully.

OTB

11,023 posts

Posted by OTB > 2 months ago | Report Abuse

Posted by ChloeTai > 10 minutes ago | Report Abuse
Today (19.02.2024 Monday) not happy. It is red. Q4 results must be > RM31,668 million. If not, it could drop more. Hope for miracle today. Can the red turn to green? Hopefully.
------------------
The technical chart is very bullish.
Even the PAT in Q4 2023 is lower than 31,668, I still believe the share price will not drop more.
I believe KGB will make > 100 million in FY 2024.
Thank you.

Posted by waorangsiam > 2 months ago | Report Abuse

i agree with otb, as long as PAT around 100 million in fy2023, it is good enough. because it is a growth stocks. to me 23.48million is within expectation and in fact is 30% of growth compare to Q4 2023 17.8million, making kenanga tp reasonable enough. but of course we wishing for more, the more the better. we dont rule out it may be double growth since this stocks always post double growth compare to previous year. fast growing company

Posted by waorangsiam > 2 months ago | Report Abuse

Comparing preceeding year PAT
Q421 8.1million Q422 17.8million
Q322 15.7million Q323 31.7million

Posted by waorangsiam > 2 months ago | Report Abuse

my highest bet for its coming Q423 PAT is double of Q422, that is 17.8x2=35.6 million.
hahaha, but its a super over optimistic figure

Posted by waorangsiam > 2 months ago | Report Abuse

maybe this coming Q423 is just ok only, I have more expectation for Q124

ChloeTai

1,058 posts

Posted by ChloeTai > 2 months ago | Report Abuse

19.02.2024 Monday: Close in white (unchanged) also considered OK. Hopefully, the operator of KGB will let this counter a chance of breaking ATH (RM2.37).

ChloeTai

1,058 posts

Posted by ChloeTai > 2 months ago | Report Abuse

I am just an ordinary person, not as good as all the sifus in I3.
Q1 (16,188 mil) < Q2 (19,064 mil) < Q3 (31,668 mil) < Q4 (> 31,668 mil)

chai2145

75 posts

Posted by chai2145 > 2 months ago | Report Abuse

i guess 22.1mil

ChloeTai

1,058 posts

Posted by ChloeTai > 2 months ago | Report Abuse

My remisier (CGS CIMB) this morning whatsapped all her clients the following:
Kellington Group Berhad (KGB)
Technical buy: at RM2.32.
Targets: RM2.46, RM2.52, RM2.61
Stop loss: RM2.20

If like this, it could break the ATH (all time high) of RM2.37 already. Just 5 sen away.

OTB

11,023 posts

Posted by OTB > 2 months ago | Report Abuse

I am very impressed with the growth of higher margin UHP gas systems and in time LCO2 plant 2 expansion.
KGB guided for its boosted margins to sustain in the coming quarters given the delivery of high-margin ultra-high purity (UHP) gas systems.
Its LCO2 plant 2 is coming online by the end of FY 2023, just in time to capitalise on the current LCO2 shortages in the market.
The semiconductor industry will grow 12% in 2024 and 24% in 2025 respectively. KGB will benefit a lot from these high growth periods to increase the earnings of KGB.

Q4 2023, PAT > 25 million is good enough.
I expect higher PAT in all quarter results of FY 2024.
I believe total earnings for FY 2024 will be around 120 million.
Thank you.

Posted by waorangsiam > 2 months ago | Report Abuse

thank you for sharing. thumbs up

ChloeTai

1,058 posts

Posted by ChloeTai > 2 months ago | Report Abuse

CGS-CIMB is expecting a sequencially stronger 4th quarter to wrap up FY23 to be driven by billings from completing projects.

ChloeTai

1,058 posts

Posted by ChloeTai > 2 months ago | Report Abuse

Please be green today (20 Feb 2024).

OTB

11,023 posts

Posted by OTB > 2 months ago | Report Abuse

I believe the PAT will increase from 100 million in FY 2023 to 120 million in FY 2024.
There is a growth of 20% in PAT for FY 2024.

PAT will increase to 120 million for FY 2024 due to the following reasons :-

1.) The current outstanding order book = 1.5 billion.
2.) Higher margin of Ultra-high purity (UHP) gas system makes up 68% of its current outstanding order book of 1.5 billion compared against 59% as reported in Q3 2023. There is an increase of 9% margin in FY 2024.
3.) Its LCO2 Plant 2 with a capacity of 70k tonnes/year or 1.4x of Plant 1, has been completed and commissioned in FY 2024.
4.) The semiconductor industry will grow 12% in 2024 and 24% in 2025 respectively. KGB will benefit a lot from these high growth periods to increase the earnings of KGB.

Let us wait and see is it possible to increase the PAT from 100 to 120 million in FY 2024 ?
Thank you.

OTB

11,023 posts

Posted by OTB > 2 months ago | Report Abuse

If the share price of KGB can break 2.37 (ATH), it means the Q4 2023 result must be good.
Let us wait and see the Q4 2023 result soon.
Thank you.

Cakes Moon

6,799 posts

Posted by Cakes Moon > 2 months ago | Report Abuse

There is 1 call warrant CD going to expired on 26-Feb'24, I believe banker will sustains share price at this level to minimize payout.
Better collect KGB after the financial report announcement, be patient.

OTB

11,023 posts

Posted by OTB > 2 months ago | Report Abuse

ChloeTai must be very happy today because the share price of KGB breaks 2.37 (ATH).
ChloeTai is a very good investor here.
She is capable of picking good fundamental stock.
Keep up the good work.

Good luck to all.
Thank you.

Posted by waorangsiam > 2 months ago | Report Abuse

wow, today like this! i like growth stocks! yes fast fast grow and become gigantic! lets see how u do in FY2024! u will do better this year! as u have the right things in every aspects and 2024 is a good year for u!

Posted by waorangsiam > 2 months ago | Report Abuse

recently saw some gurus start posting on semiconductor industry, citing they are undervalue and recovery is coming in. indeed they are laggard and behind compared to international market where they already ridding on AI trend. plus Malaysia should have beneficial factors on weak USD/RM. maybe 2024 is a year for semiconductor industry for malaysia. space for growth for malaysia!

ChloeTai

1,058 posts

Posted by ChloeTai > 2 months ago | Report Abuse

Thank you very much Mr Ooi Teik Bee. You are most welcome.

Posted by Permutation > 2 months ago | Report Abuse

KGB WB is trading at a discount and has 2 more years to expiry. Perhaps it is a better buy than the mother share.

OTB

11,023 posts

Posted by OTB > 2 months ago | Report Abuse

Yes. You are right.
I also prefer to buy KGB-WB.
You have a higher ROI if you buy WB.
Thank you.

ChloeTai

1,058 posts

Posted by ChloeTai > 2 months ago | Report Abuse

@waorangsiam forcast of 17.8 X 2 = 35.6 Q4 earnings is needed to break RM2.40. All TA analysts forecast is above RM2.40.

Thealanor

43 posts

Posted by Thealanor > 2 months ago | Report Abuse

buying more WB now

ChloeTai

1,058 posts

Posted by ChloeTai > 2 months ago | Report Abuse

I too have converted all my KGB mother shares to WB.

Posted by waorangsiam > 2 months ago | Report Abuse

@ChloeTai I also hope the earnings the higher the better. For myself, I will give it time to expand and grow for now and I am looking at longer term like FY24 especially and maybe FY25. Plus I think they might give handsome dividend in future. Because many funds in this share. Top 30 all funds. They are strong holder. Especially dividend growth stocks. Which is rare

ChloeTai

1,058 posts

Posted by ChloeTai > 2 months ago | Report Abuse

Sunway Construction posted a record high 4th quarter results which are better YoY and QoQ. I have only 1,000 shares of SUNCON. But I really hope KGB can perform as well especially the QoQ which many are doubtful that KGB can do it.

cgtan2020

640 posts

Posted by cgtan2020 > 2 months ago | Report Abuse

Q4 result out on 28Feb2024

ChloeTai

1,058 posts

Posted by ChloeTai > 2 months ago | Report Abuse

Another new day, another new hope. Hope that WB can go up nearer to RM1.

OTB

11,023 posts

Posted by OTB > 2 months ago | Report Abuse

Foreign funds are net buying stocks listed in KLSE everyday since February month.
I hope a bull market is coming to KLSE.
We have not seen a bull market in KLSE since 1993/4.
I hope it is a real one.
The share prices of KGB and KGB-WB breaks new high, it is a very good news here.

The promoter of plantation stocks attacked KGB with a faked news.
I hope the share price of KGB will hit 3.28 as recommended by Kenanga IB.
Good luck to all investors here in 2024.
Thank you.

ChloeTai

1,058 posts

Posted by ChloeTai > 2 months ago | Report Abuse

The premium of WB (RM0.975) is now -2.5% against the mother share (RM2.41).

Posted by Permutation > 2 months ago | Report Abuse

Soon WB will be trading at a premium instead of discount. Time will tell.

Posted by waorangsiam > 2 months ago | Report Abuse

the more fake news or evil comments they make, the more we know their true evil face and mind. last time i still dont know who they are and how they do. now i know. dont believe at all what they say. whatever they post, i will just ignore, not even a glance.

Posted by waorangsiam > 2 months ago | Report Abuse

zero credibility

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