TSMC and other wafer fab players had in recent earnings call stated that they are planning to build more capacity for the automotive industry which typically takes 12-18 months, this explains why automotive semiconductor players (e.g. Infineon, ST Micro and Renesas) are already locking in orders 1-2 years in advance. Such development continues to favour our hidden gem pick, Kelington Group (OP; TP: RM2.50), as a prime candidate to benefit from fab expansions in Asia. Even with share price surging more than 3.2x (inclusive of free warrants) since our non-consensus initiation report on 11 Nov 2020, it still remains as our high conviction buy as the group is expecting more ultra-high purity gas system (UHP) job awards from fabs in China and Singapore.
Maintain OVERWEIGHT stance on the technology sector. Our top picks are:
(i) Kelington Group (OUTPERFORM, TP: RM2.50). Kelington Group recently clinched its largest job win worth RM420m, doubling its existing order-book which was already at an all-time high level prior to this win. The job entails a turnkey construction of a new semiconductor fab in Kuching for a US-listed memory company which will begin immediately as the US client is scrambling for capacity to keep up with the surge in memory chip demand. This brings YTD order wins to a new high of RM764m while its order-book hits a record RM822m, nearing its current market cap. We expect more fab expansion to come and KGB is in a favourable position to benefit from more UHP jobs, with the management showing no signs of slowing down in terms of securing new jobs. The group’s tender-book remains elevated at RM1.1b.
@aa1234 yes. All warrants are speculative in nature. Last time more than 15 years ago, there was this warrant called Sinmah-wa. Its price was at least 30% above the mother share.
TSMC and other wafer fab players had in recent earnings call stated that they are planning to build more capacity for the automotive industry which typically takes 12-18 months, this explains why automotive semiconductor players (e.g. Infineon, ST Micro and Renesas) are already locking in orders 1-2 years in advance. Such development continues to favour our hidden gem pick, Kelington Group (OP; TP: RM2.50), as a prime candidate to benefit from fab expansions in Asia. Even with share price surging more than 3.2x (inclusive of free warrants) since our non-consensus initiation report on 11 Nov 2020, it still remains as our high conviction buy as the group is expecting more ultra-high purity gas system (UHP) job awards from fabs in China and Singapore.
Maintain OVERWEIGHT stance on the technology sector. Our top picks are:
(i) Kelington Group ( TP: RM2.50). Kelington Group recently clinched its largest job win worth RM420m, doubling its existing order-book which was already at an all-time high level prior to this win.
it still remains as our *** high conviction buy ***as the group is expecting more ultra-high purity gas system (UHP) job awards from fabs in China and Singapore.
READ CAREFULLY
*** high conviction buy ***
and not a technical buy ; or outperform call.
Can you examine the difference ?
Target Price RM 2.50 for mother share When the mother reaches the desired Target Price : RM 2.50
WB will be at least RM 1.30 level to RM 1.40 level.
It's obvious we're going into correction based on today's movement and unable to clear up sellers side at closing. MAcD also indicates we're going down.
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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....
Start_0f_the_bull
7,405 posts
Posted by Start_0f_the_bull > 2021-09-30 15:55 | Report Abuse
Morning up afternoon down, it happen almost everyday. More like a goreng stock.