The contracts are also related party transactions, as deputy chairman and group managing director Mustakim Mat Nun (pic) 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
PETALING JAYA: A potential fund raising exercise could be in the offing for KPower Bhd to finance its large-scale solar power (LSS4) project and for other future expansion, say analysts. The sustainable energy and utilities business related group on Monday announced that it secured four domestic engineering, procurement, construction and commissioning (EPCC) contracts worth RM510mil, where it will work on mini hydro power plants.RHB Research, in its latest report, said that it is upbeat on KPower winning the EPCC contracts. This will put the group’s order book growth on track, the research unit said. “We make no changes to our earnings estimate, as the company’s year-to-date win of RM1.1bil is still within our order book replenishment assumption, ” it added. Assuming a cash call to enlarge its share base by 10%, RHB Research’s target price for KPower could be diluted to RM2.84 “if we assume no incremental earnings. “All in, our outlook remains positive, as KPower has strong earnings growth potential – premised on its solid order book and handsome return on equity.” “We are positive on the contract wins which come up to 32% of its RM1.6bil order book as of Q2’21 as it demonstrates the group’s capacity to secure contracts domestically. “Three of these mini hydro power plants are in Pahang, while the remaining one is in Perak. “This also marks its first EPCC contract win in Pahang, ” it added. The contracts are also 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. RHB Research believed the projects could fetch gross margins of 15%-20%, which are comparable to other contracts secured earlier on. In addition, the group’s recent venture into solar photovoltaic installation may also further strengthen its 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. The research unit is maintaining a “buy” call on KPower with an unchanged target price of RM3.12. It noted that the downside risks to its call include lower-than-expected order book replenishment rate and project cost overruns.
The contracts are also 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.
Don't understand why people have bad intentions for others. They will sell their mother to make money....Don't you people understand that what you do to others you will get it back twice fold! Be careful. Let's all make money..
agreed. collection mode... Anson faster board this rocket before it launched . I think previously anson liew rugi a lot may be he bought at 2.8 and cutloss at 2... so now he day day sing bad kpower and scib. haha
haha AnsonLiew... how to lose money o.. my cost price below RM1 and i already earned from selling the warrant. hahaha.. u see got people sapu up. I think higher chance for u to lose ur money in jaks then kpower. Jaks right issue to pay debt... kpowe private placement to expand business... can u see the different?
Today seems like got big player collecting Kpower & Scib at low price and eventually push them up to opening price before market closing. However, Kpower still close red $2.07. Worth to take a look if the price is able to rise above 2.10.
will the rise in raw material price (eg. steel) affect the profit margin of Kpower? since the order book of Kpower is quite huge, if the raw material price keep increasing wouldnt it be very bad for Kpower? please correct me if i am wrong. maybe the purpose of fundraising is to ease the cash flow of Kpower's project?
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AnsonLiew
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Posted by AnsonLiew > 2021-04-28 08:24 | Report Abuse
tis con stock no hope oredy tp only 2.31 by 2023