The Board of Directors of KPower (“Board”) is pleased to announce that KPower Engineering Sdn Bhd (formerly known as Hypergize Link Sdn Bhd) (“KPEng”), a wholly-owned subsidiary of KPower, has on 26 April 2021 accepted the letter of award for contract works of approximately RM510,000,000 from the following:-
a) Cabaran Hijau Sdn. Bhd. (“CHSB”) to undertake amongst others, the engineering, design, procurement, construction, commissioning and completion of a 18.7 MW mini hydro power plant in Sg. Jelai Kecil, Mukim Jelai, Daerah Lipis, Pahang Darul Makmur, for a contract price of RM199,159,192.83 (“Project 1”) (“LOA 1”);
b) Selat Serasi Sdn. Bhd. (“SSSB”) to undertake amongst others, the engineering, design, procurement, construction, commissioning and completion of a 13.9 MW mini hydro power plant in Sg. Telom, Mukim Hulu Telom, Cameron Highland, Pahang Darul Makmur, for a contract price of RM148,038,116.59 (“Project 2”) (“LOA 2”);
c) Denai Delima Sdn. Bhd. (“DDSB”) to undertake amongst others, the engineering, design, procurement, construction, commissioning and completion of a 12 MW mini hydro power plant in Sg. Lemoi, Mukim Hulu Telom, Cameron Highland, Pahang Darul Makmur, for a contract price of RM127,802,690.58 (“Project 3”) (“LOA 3”); and
d) Koridor Mentari Sdn. Bhd. (“KMSB”) to undertake amongst others, the engineering, procurement, construction, commissioning and completion of a 5.25 MW mini hydro power plant along Sg. Kampar, Kampar, Perak Darul Ridzuan, for a contract price of RM35,000,000 (“Project 4”) (“LOA 4”).
For this financial year, inclusive of this award, KPower has secured RM1.2bil worth of projects and is confident to secure RM2bil for the financial year ending June 30, 2021.
U can c that 3-4.45pm price is press down, because they want to scare those newbie and buy cheap ticket, this show that an uptrend is coming, if not, who want purposely go press down price, too free?
why sell? This is just starting. now secured project only 1.2billion and company target is 2 billion. Management said they are confident to secure 2 billion project for the financial year ending June 30, 2021. More and more projects coming soon.
RHB Reiterate BUY, unchanged MYR3.12 TP offers 51% upside with c.1% FY21 (Jun) yield. We are upbeat on KPower winning four domestic engineering, procurement, construction and commissioning (EPCC) contracts worth MYR510m, where it will work on mini hydropower plants. This puts its orderbook growth on track. We make no changes to our earnings estimate, as the company’s YTD win of MYR1.1bn is still within our orderbook replenishment assumption. Secured four EPCC contracts worth MYR510m. KPower announced that it has accepted a letter of award for four EPCC jobs on 5.25-18.7MW mini hydro power plants, from various parties: Cabaran Hijau, Selat Serasi, Denai Delima, and Koridor Mentari (project companies). The value of these contracts range from MYR35m to MYR199m, and total MYR510m. The smallest contract has the shortest duration of <14months, while the remaining three contracts have a similar duration of <4 years (see Figure 1 for details). KPower and the project companies will enter into a definitive agreement within 60 business days, from the date of acceptance. Maiden EPCC contract win in Pahang. We are positive on the contract wins (which come up to 32% of its MYR1.6bn orderbook as of 2QFY21), as it demonstrates KPower’s capacity to secure contracts domestically. Three of these mini hydropower plants are in Pahang, while the remaining one is in Perak. This also marks its first EPCC contract win in Pahang. These contracts are related party transactions, as Deputy Chairman and Group Managing Director Mustakim Mat Nun and group CFO Amirul Afif Abd Aziz are also directors of the project companies and have intention to acquire certain stakes in the project companies. We believe these projects could fetch gross margins of 15-20%, which are comparable to other contracts secured earlier on. Forecasts. Including these wins, KPower’s YTD wins increase to MYR1.1bn. As it is still within our FY21 MYR1.3bn replenishment assumption, we make no changes to our earnings estimate. Still BUY. Our unchanged MYR3.12 TP is still pegged to 25x FY22F P/E. We believe KPower could potentially raise funds to finance its large-scale solar power (LSS4) project and for future expansion. Assuming a cash call to enlarge its share base by 10%, our TP could be diluted to MYR2.84 if we assume no incremental earnings. All in, our outlook remains positive, as Kpower has strong earnings growth potential – premised on its solid orderbook and handsome ROE. Its recent venture into solar photovoltaic installation may further strengthen growth prospects, as it could ride on the wave of interest in renewable energy in Malaysia – if it is able to establish a track record. Downside risks to our call are a lower-than-expected orderbook replenishment rate, and project cost overruns
Anson I bet you are having difficult life currently, I haven’t seen a mental guy continuosly like this for awhile, for your own benefit better go to meet psychiatrist before is too late bro.
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Posted by power88 > 2021-04-26 14:46 | Report Abuse
The Board of Directors of KPower (“Board”) is pleased to announce that KPower Engineering Sdn Bhd (formerly known as Hypergize Link Sdn Bhd) (“KPEng”), a wholly-owned subsidiary of KPower, has on 26 April 2021 accepted the letter of award for contract works of approximately RM510,000,000 from the following:-
a) Cabaran Hijau Sdn. Bhd. (“CHSB”) to undertake amongst others, the engineering, design, procurement, construction, commissioning and completion of a 18.7 MW mini hydro power plant in Sg. Jelai Kecil, Mukim Jelai, Daerah Lipis, Pahang Darul Makmur, for a contract price of RM199,159,192.83 (“Project 1”) (“LOA 1”);
b) Selat Serasi Sdn. Bhd. (“SSSB”) to undertake amongst others, the engineering, design, procurement, construction, commissioning and completion of a 13.9 MW mini hydro power plant in Sg. Telom, Mukim Hulu Telom, Cameron Highland, Pahang Darul Makmur, for a contract price of RM148,038,116.59 (“Project 2”) (“LOA 2”);
c) Denai Delima Sdn. Bhd. (“DDSB”) to undertake amongst others, the engineering, design, procurement, construction, commissioning and completion of a 12 MW mini hydro power plant in Sg. Lemoi, Mukim Hulu Telom, Cameron Highland, Pahang Darul Makmur, for a contract price of RM127,802,690.58 (“Project 3”) (“LOA 3”); and
d) Koridor Mentari Sdn. Bhd. (“KMSB”) to undertake amongst others, the engineering, procurement, construction, commissioning and completion of a 5.25 MW mini hydro power plant along Sg. Kampar, Kampar, Perak Darul Ridzuan, for a contract price of RM35,000,000 (“Project 4”) (“LOA 4”).