With the realisation of the importance of chips/ semicon in the context of technology competition, various countries are ramping up their capability / capex for this industry.
Hence KGB will surely benefits from capex expansion by these chips/ semicon players. At least next 2 -3 years..
Embrace yourself for potentially much higher prices for this stock… ! Up up up
Noticed MalaccaSecurities downward revised TP today, from 1.90 down to 1.71, any sifu here able to enlighten why so? project win and revised downward TP?
Read the full sentences la sifu georgeting not the tajuk only like malaysians always do.... "Given that the orderbook replenishment exceeds our expectations, we made revised our earnings forecast higher by 1.4% and 5.9% to RM29.6m and RM43.2m for FY21f and FY22f respectively after taking into account of the aforementioned win. Consequently, we maintained our BUY recommendation on KGB, with a higher target price of RM2.01 (from RM1.90)"
Kelington Group - Seals 100% Win Rate Author: kiasutrader | Publish date: Wed, 6 Oct 2021, 9:18 AM
KGB extends its winning streak, securing its third job award from the world’s third largest semiconductor wafer foundry player. This job is worth RM40m, for the supply of an abatement system in the foundry’s upcoming wafer fab in Singapore.
All three awards totalled to RM134m, representing a 100% win rate
GlobalFoundries Inc. (GF) is an American multinational semiconductor contract manufacturing and design company headquartered in Malta, New York.[4] GlobalFoundries was created by the divestiture of the manufacturing arm of Advanced Micro Devices (AMD) and is currently privately owned by Mubadala Investment Company the sovereign wealth fund of the United Arab Emirates.
Thomas Caulfield the chief executive officer (CEO) declared that GlobalFoundries plans to become a publicly traded company in 2022.[5] GlobalFoundries plans to list under the ticker "GFS" on the Nasdaq and submitted an initial public offering (IPO) filing to the U.S. Securities and Exchange Commission.[6]
This brings YTD job wins to a new high of RM841m while its order-book hits a record RM979m.
KGB remains our top hidden gem pick owing to its healthy job pipeline and secular growth story. Reiterate our OUTPERFORM call with a
Target Price of RM2.50.
Extending its winning streak. Just three weeks after surprising us with its largest ever job win, Kelington Group (KGB) announced another contract award yesterday worth RM40m, marking its third job win from this single customer (world’s third largest semiconductor wafer foundry) for a new wafer fab construction in Singapore.
Hits a home run. The latest contract is for the supply and installation of an abatement system, complimenting the earlier two awards (for specialty gas and bulk gas) which involve designing and building the delivery systems for ultra-high purity gasses used in the fabrication process of semiconductor chips. All three awards from this particular customer totalled to RM134m, representing a 100% win rate for KGB. The group will commence work in a week’s time and targets to complete it by the end of 2022. Coincidentally, this customer has also on yesterday filed for IPO and is targeting to be listed on the Nasdaq Stock Exchange by the end of the year.
Order-book swells to RM979m. On YTD basis, KGB’s order replenishment of RM841m has more than surpassed its previous record in FY20 of RM490m, further strengthening our thesis of a secular growth story. Meanwhile, its outstanding order-book has swelled to another all-time high of RM979m, which is close to 2.5x of FY20 revenue.
Buoyed by the secular growth for chips. More than a year into the chip shortage scene, we are convinced that the demand surge for semiconductors is coming from a new wave of demand rather than a temporary supply glitch, in line with increasing components in: (i) enddevices to facilitate the adoption of 5G connectivity and (ii) electric vehicles. Therefore, we expect more fab expansion to be announced in Asia and KGB is in a favourable position to benefit from more UHP jobs given its strong presence in China, Singapore, Malaysia and Taiwan. Despite having RM979m worth of jobs at hand, the management is showing no signs of slowing down as the group’s tender-book remains elevated at RM1.1b.
Maintain FY21E and FY22E earnings at RM32.3m and RM47.0m, representing growth of 85% and 46%, respectively.
Maintain our OUTPERFORM call with an unchanged
Target Price of RM2.50 on FY22E PER of 33x (+1SD to 3-year peer mean), justified by the group’s healthy job pipeline and secular growth story.
Risks to our call include: (i) slower revenue recognition due to Covid-19, (ii) downturn in semiconductor sales, and (iii) delay in liquid CO2 ramp up.
who want to sell just sell and move on lah. not need ask why this why that, talk 3 talk 4, rsi lah , macd lah no need act like u are so concern/ worry other people lose money
I think some people here don't really study many background of KGB such as the trend of fab expansion , the increase of production from the new factory, the effect of recovery from pandemic to this company, the new oversea market of this company, the new client segment of this company, the end-to-end solutions offer by this company, the major shareholder of this company, the foreseeable increase in profit margin....Please sell to me
Same OM, daily one push up and done for the day. Morning glory...and trapping above 1.80...always falling back. All false start, never follow through. IB said 2.50...1.90 also cannot smell...
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....
imvu
7,888 posts
Posted by imvu > 2021-10-05 22:40 | Report Abuse
waahh.. us market rebound tinggi malam ni .. harap pagi besok naik lagi tinggi ..