u see ah most of the project lead time need 3 to 4 year per calculate, the best revenue per Q i think wouldn't more than 100mil, so the best pat i think no.more than 10mil
Reiterate BUY, new TP of MYR5.70 from MYR4.13, 20% upside with c.2% FY22 (Jun) yield. We believe Kumpulan Powernet is on track to deliver phenomenal earnings growth in FY21, and will double its orderbook by end-FY21F. The company, in our view, may undergo a further rerating if it can penetrate the solar industry, which fetches premium valuations. 1QFY21 earnings growth expectations. Conservatively, we expect 1QFY21 core earnings to at least match 4QFY20’s MYR7.3m, on the back of continuous project billings from contracts in hand, coupled with higher revenue from property development. KPOWER’s only commercial project in Sentul, Kuala Lumpur – with a GDV of MYR41m – was 70%-completed as of end-September. Due to the disruption caused by the Movement Control Order, the expected completion date has been pushed back further to Jun 2021. The company’s unbilled sales of MYR12m will be recognised largely in FY21. Eyeing the Large Scale Solar 4 (LSS4) pie. Together with its partner, KPOWER has put in bids as an asset owner for 50MW capacity in the LSS4 project, whereby the award could be announced by the end of this year. We estimate the capex needed for a 50MW capacity at c.MYR180m. As such, we do not discount the possibility of potential cash calls, if KPOWER is able to secure this project. At the same time, the company is also seeking for engineering, procurement, construction and commissioning job opportunities from LSS4. On track to meet its end-FY21 orderbook target of MYR2bn. KPOWER’s orderbook stood at MYR1.4bn as of October, and it has secured MYR248m in contracts YTD. The company aims to grow its orderbook value to MYR2bn by end-FY21, implying a replenishment of >MYR1bn. Its current bid value stands at MYR3.2bn, of which 67% is from the energy segment, followed by infrastructure, at 32%. Both logistics and utilities jobs account for less than 1% of its total tenderbook. Still BUY. We maintain our earnings estimates, but lift our TP to MYR5.70 from MYR4.13, after rolling forward our valuation base year to FY22 (pegged to an unchanged 15x P/E). KPOWER has proposed a 4-for-1 share split and a 1-for-3 free warrants issue, after the share split adjustment. The warrants will have a 5-year tenure, with the exercise price fixed at MYR2.50. We have yet to impute the warrants into our projections, as we do not expect it to be exercisable in the near term. We are upbeat on this stock, as KPOWER offers strong earnings growth – premised on the potential doubling of its orderbook by end-FY21, as well as its superior ROEs. Downside risks to our call are a lower-than-expected orderbook replenishment rate, and project cost overruns
Will the market crash if budget 2021 cannot be passed this coming Thursday (26/10/2020)? These are the 4 possible scenarios:
1. Parliament will be dissolved and a snap election will be called 2. A state of Emergency in the whole country will be declared by YDPA 3. Muhyiddin will resign and YDPA will appoint an interim PM 4. YDPA will appoint a new PM who has majority MPs support. A new budget 2021 also will be tabled by the new appointed PM.
Will the market go down? Will it crash? Take profit now or wait?
@AnsonLiew run market crash. Are U newbie? Do U know what is market crash? Ppl say if U r a fool don't open mouth bcos ppl think u r a fool but once u open mouth ppl KNOW U R A FOOL
Kpower high lighted by bursa and other investment houses calling a buy based on the current and future earnings potential. Look at their report based on pure numbers and qtrs result
Based on Q4 2020, PAT Margin was 18.6%. KPower earned higher PAT margin as its also "design" the power plan in addition to typical EPCC margin. The price will be well supported at 4.65-4.70 before marching higher.
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....
DreamMarauder
1,094 posts
Posted by DreamMarauder > 2020-11-22 20:13 | Report Abuse
Okay also la