It wouldnt be a big placement, given that its for 2 projects worth RM300+ million. Compare it with the earlier placement where it is for projects worth RM700+ million, at a much lower share price. Dilution would be minimal, if any
Kpower just turned around to profit last year,rising fund for projects is normal,order book around 1.3 bil in a year since karim took over,another 2 bil coming.Not many construction/epcc company can get 1.3bil order book/year.Serba dinamik secured 2 projects at Abu Dhabi on 15 apr and 6 aug for the sum of 9bil,if 20% of works awarded to kpower ,will be 1.8bil.
"modification to the Share Split together with other potential corporate exercises" Share Split -> maybe will change to 1 split to 3. other potential corporate exercises -> maybe is free warrant.
Maybe is want follow scib bonus with free warrant. because cannot simple said want follow scib. so need a reason, the reason they use is big project need raise fund.
they want push the capital to more higher then PP can get big money. This is one of reason why they want push to 1b capital. after reach 1b capital pp, can get more money for development.
i believe they will follow scib free bonus with warrant to push up capital then only pp.
I think they will modify the split to 2 to 1 bonus issue come with rights share so we could subscript,not pp to third party let them benefits.This is better than taking loan and at the same time the company share base is more liquidity,im just guessing
If u worry about the eps dilution of pp,last 3 q earning almost 100%"average" q/q,big project sure bigger profits right?Even those bil $ construction company has to take loan to run projects.
my estimation of fair share price at 113mil shares of kpower, 1.3bil revenue divided by 4 years is 325mil/y,10% net profits is 32.5mil,divided again by 113mil shares =0.287 eps. 14xpe is $4
10% profit margin too low lah. Previous quarter already 18%. Let's take 15% coz these contracts are high margin projects. 15% net margin will yield 49mil per year lah. PER 14x will give share price of RM6.86 already. PER 10x will give share price of RM4.90 already. PER 15x will give RM7.35. With this kind of earnings growth over the next few years, Who cares about dilution, share split or whatnot when earnings alone will power KPower to RM6.00 at least already. If worried about all these financial engineering like share split, dilution, please sell. I can't wait to buy.
as expected.. karim done it again.. previously when kpower reach 3.00..he dispose, now at 3.50.. than price will drop.. next, if available, sell when reach 4.00.. :-)
if u know this stock is going to $4,why not buy now after 63sen dropped from high?i bought some at 3.04 today,this is not a buy call.last correction drop from 3 to 2.50 then shoot up to 3.63,this time 3.63 to 2.90 then shoot to ?
This one can hold long term lah, negligible effect from development of vaccines or COVID-19 cases, orderbook that can last for more than 10 years if revenue remains the same. What's not to like? No-brainer. Please sell more!
Kumpulan Powernet is poised to test the RM3.24 resistance level. With its RSI indicator pointing upwards, coupled with a bullish white candlestick pattern, we think that the bullish momentum will soon push towards the short-term target price of RM3.43 followed by RM3.63. In this case, the downside support is marked at RM2.98, whereby traders may exit on a breach to avoid the risk of a further correction
2.35? If u buy at 3,your risk is 10%,i bought some this morning 2.96,average 3.45.one year after RTO,the 13.7 bil order book from june 19 to aug 20 starts to kick in,average 350mil revenue/year for 4 years.I estimate the net income for next Q to be released NOV around 10 mil
dont under this kpower's earning ability,revenue from 31mar-30june gain 20+% but the net income leaped 175%,this is like supermax,i like it,way better than scib
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....
KenKen84
285 posts
Posted by KenKen84 > 2020-09-04 10:42 | Report Abuse
thanks for good sharing info , invest !