KPOWER is mini Serba Dinamik which involved in green energy industry while the latter involved in oil & gas industy.
The current order book of Serba Dinamik is RM10 billion, they earned profit of more than RM400 million this year. Let us say that KPOWER has order book of RM1 billion, they also can earn more than RM40 million per year.
RM40 million / 76.15 million shares x 10 per = RM5.25
Now the chairman of KPower is Datuk Dr. Abdul Karim, the CEO of Serba Dinamik. I am very confident of his ability to win RM1 billion order book in FY2020, it means by 30 Jun 2020.
The current order book is RM265 million, they still need to secure RM735 million order book within 6 months.
Now its tender book (not order book) stands at RM2.5 billion, they only need to secure 30% of the tender book, then its targeted order book of RM1 billion should be able to achieve.
KPower is net cash company. The stock price still lagging behind if compared to SCIB. Whole world know that Datuk Dr. Abdul Karim acquired KPower & SCIB at RM1.00 & RM1.10.
I am quite sure KPower is mini model of Serba Dinamik. Nobody cares this green energy company until it secured RM1 billion order book and shocked the market.
RM1.76 is not considered high. The total shares of KPower merely 76.15 million shares.
Let us say that they complete the RM1 billion order book in 2.5 years. In first year, they will execute RM400 million order book, based on profit margin of 10%, the earnings will be RM40 million.
RM40 million / 76.15 million shares x 10 per = RM5.25
I thought they want to launch cash call via rights issue. Now no any rights issue, just 10% private placement, it means we as shareholders no need to pay extra money to KPower, but the earnings per shares will be diluted max. 10%.
OTHERS KUMPULAN POWERNET BERHAD ("KPOWER" OR THE "COMPANY") LETTER OF AWARD IN RELATION TO THE DESIGN, SUPPLY, CONSTRUCTION, COMMISSIONING AND COMPLETION OF AN EIGHT (8) MEGAWATT ("MW") SMALL HYDROPOWER PLANT AT NAM SAMOY, KASI DISTRICT IN VIENTIANE PROVINCE OF THE LAO PEOPLE'S DEMOCRATIC REPUBLIC ("LAO PDR").
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....
Jengacam2
523 posts
Posted by Jengacam2 > 2020-01-08 10:49 | Report Abuse
time to let go