Posted by Lightsaber > 2014-08-07 11:33 | Report Abuse

Price has not factored in entirely. Maybank's TP of RM1.00 is excluding Peterborough and Rapid project. HLB's TP of RM1.35 is inclusive of the two. Hence, make your judgement.

Posted by crawler > 2014-08-07 11:34 | Report Abuse

sell on news

Posted by anontrader > 2014-08-07 11:39 | Report Abuse

Maybank's TP is now RM1.50

Posted by Fei HK > 2014-08-07 11:40 | Report Abuse

1.35 should be achieved by end of year. watch out for cm n cn warrant.

Posted by gymkhana > 2014-08-07 11:48 | Report Abuse

Zmh540... where are u...

as predicted... after raya, KNM show time...

Posted by Lightsaber > 2014-08-07 11:50 | Report Abuse

Anontrader ... can share link to Maybank's report ?

Posted by kytan > 2014-08-07 12:01 | Report Abuse

Top Picks

To capitalise on the RAPID theme, our top pick is KNM (BUY: TP:RM1.35). Our TP have not factored in value from EnergyPark Peterborough yet. Phase 1 (23% of total 80MW) will add RM0.39 to our TP.

Source: Hong Leong Investment Bank Research - 7 Aug 2014
Mean Hong Leong TP should 1.35+0.39= 1.74 if included Peterborough

Posted by kytan > 2014-08-07 12:03 | Report Abuse

Catalysts
• Announcement of RAPID contract win.
• Financial closing of EnergyPark Peterborough.
• Strong quarterly earnings due to lower finance cost.
• Relisting of Borsig to unlock value.

Risks

Fluctuation in the oil price; Project execution ability; Delay in contracts award.

Valuation

We initiate coverage on the company with a target price of RM1.35 based on 16x FY15 P/E, premium to its peers’ average target of 14-15x given its strong earnings growth prospect (CAGR of 55% from FY14-FY16). Our TP have not factored in value from EnergyPark Peterborough yet. BUY.

Source: Hong Leong Investment Bank Research - 2 Jul 2014

Posted by anontrader > 2014-08-07 12:06 | Report Abuse

KNM Group - RAPID ready (BUY, TP MYR1.50, KNMG MK, Oil & Gas)

Estimated to secure USD280m worth of works from Sinopec’s USD1.3b package win.
Raising 2015/16 earnings by 44%/40% to account for higher jobs wins (+MYR1b to MYR3b p.a.).
Changed valuation methodology to backlog-based; TP raised to MYR1.50 (+50%) on 0.7x EV/backlog. BUY.

What’s New
RAPID's mega packages are finally out. Sinopec Engineering has secured a Letter of Award from PETRONAS for the RAPID package 2 job. This EPCC contract is valued at about USD1.33bn. KNM is one of Sinopec's selected subcontractors for this package, having been involved in the bidding process with Sinopec. While not stated in the Bursa announcement, we believe that KNM’s effective portion is c.USD280m. Works are likely to start in early 2015, over 2 years.

What’s Our View
This is positive development for KNM. Apart from this package, we understand that KNM would also have exposure to several other packages. According to market sources, apart from Sinopec, CITC, Technicas Reunidaf, Petrofac and Toyo are the EPCC winners for the other 4 RAPID-related packages.
In total, we expect KNM to secure about USD800m-USD1b worth of jobs from RAPID alone over the next 3 years (2015-17). We expect subsequent contract flows on RAPID works over the next few months, in favour of KNM. For this, we have raised our 2015-16 earnings forecasts by 44%/40%, taking into account the higher backlog orders (+50% to MYR3b p.a.) expectations.
Similar to our other cyclical, order-driven oil & gas stock coverage, we now adopt the backlog-based valuation method on KNM. Orders momentum should drive price performance and this new approach best reflect KNM’s prospects. For this, we have raised our TP to MYR1.50 (+50sen), based on 0.7x EV/backlog multiple for 2015. The 0.7x reflects its 3-year historical threshold. We have assumed a MYR3b order backlog for 2015.

Source: Maybank Investment Bank Research - 7 August 2014

Posted by Fei HK > 2014-08-07 12:08 | Report Abuse

so rm2 by yr2016?

Posted by gorengqueen > 2014-08-07 12:09 | Report Abuse

Excerpt from Maybank report this morning

What’s New
RAPID's mega packages are finally out. Sinopec Engineering has secured a Letter of Award from PETRONAS for the RAPID package 2 job. This EPCC contract is valued at about USD1.33bn. KNM is one of Sinopec's selected subcontractors for this package, having been involved in the bidding process with Sinopec. While not stated in the Bursa announcement, we believe that KNM’s effective portion is c.USD280m. Works are likely to start in early 2015, over 2 years.

What’s Our View
This is positive development for KNM. Apart from this package, we understand that KNM would also have exposure to several other packages. According to market sources, apart from Sinopec, CITC, Technicas Reunidaf, Petrofac and Toyo are the EPCC winners for the other 4 RAPID-related packages. In total, we expect KNM to secure about USD800m-USD1b worth of jobs from RAPID alone over the next 3 years (2015-17). We expect
subsequent contract flows on RAPID works over the next few months, in favour of KNM. For this, we have raised our 2015-16 earnings forecasts by 44%/40%, taking into account the higher backlog orders (+50% to MYR3b p.a.) expectations. Similar to our other cyclical, order-driven oil & gas stock coverage, we now adopt the backlog-based valuation method on KNM. Orders momentum should drive price performance and this new approach best reflect KNM’s prospects. For this, we have raised our TP to MYR1.50 (+50sen), based on 0.7x EV/backlog multiple for 2015. The 0.7x reflects its 3-year historical threshold. We have assumed a MYR3b order backlog for 2015.

Posted by kangcs > 2014-08-07 12:22 | Report Abuse

Ho Shei Liow...

Posted by FX Lee > 2014-08-07 12:24 | Report Abuse

good news

Posted by Stockman > 2014-08-07 12:25 | Report Abuse

KNM got Petronas job valued at RM4.26 billion


http://www.theedgemalaysia.com/business-news/301689-hot-stock-knm-rises-10-on-rm426b-petronas-contract.html

Posted by Stockman > 2014-08-07 12:26 | Report Abuse

TP: 1.35

Posted by Lightsaber > 2014-08-07 12:27 | Report Abuse

TP1.50 by maybank

Posted by jackkyip > 2014-08-07 12:51 | Report Abuse

reload...prepare bullet

Posted by zan122208 > 2014-08-07 13:02 | Report Abuse

zhm540..where are you? Tipu dan lari?

Posted by wcs0201 > 2014-08-07 13:04 | Report Abuse

more pathetic that is somebody even believed what he spread, lol ...

Posted by Fei HK > 2014-08-07 13:05 | Report Abuse

stockman. sinopec gets the 4.26b knm is the sub contractor

Posted by Fei HK > 2014-08-07 13:17 | Report Abuse

guys pls forgive n let go of zmh540 ok. 节哀顺变. we just continue our prosperous journey n not look back.

Posted by Hotrod > 2014-08-07 13:37 | Report Abuse

RAPID proj is just the beginning ..... watchout for the qtr results next. Strong Hold guys .... .

Posted by gymkhana > 2014-08-07 13:52 | Report Abuse

ok look forward... life must go on... :-)

Posted by kytan > 2014-08-07 14:17 | Report Abuse

Zelan when secure new project also go higher and come down on 25/7.....BUT next day continous up from 0.32 to 0.4 today price.Will Knm follow the pattern after people take profit..and continous uptrend.
Sumatec after Private placement also drop to 0.47 (5 Jul)...but next day go up to 0.49 today 0.5.

Bu when the price start stable..

Posted by Brahims > 2014-08-07 14:21 | Report Abuse

@ zhm540 How sumatec can fly? fly to what price? Can you provide data to say that it can fly?

Posted by maxmax > 2014-08-07 14:27 | Report Abuse

dont listen to him....zhm540....once out of PN 17....will go above 0.60

Posted by kytan > 2014-08-07 14:46 | Report Abuse

hope sumatec can better than cliq 0.64

Posted by Hotrod > 2014-08-07 16:26 | Report Abuse

Yes i agree. Watchout for qtr results. You won't regret.

Posted by squirt > 2014-08-07 16:42 | Report Abuse

Zhm540 spreading false rumours. Stupid ppl who listen to u yesterday will regret like hell today

Posted by valuemaster > 2014-08-07 16:44 | Report Abuse

hold or top up, tomorrow those analyst will revise their target price, as I told you KNM is going to bag RM3b, now it surprises me on RM4b, my target is RM1.50

Posted by AhHuat50 > 2014-08-07 16:56 | Report Abuse

cibai Zhm540, go die la...

Posted by kytan > 2014-08-07 17:09 | Report Abuse

since EPF holding this share..should be good, today price not up maybe control by EPF again just like Skpetro..

Posted by Fei HK > 2014-08-07 17:38 | Report Abuse

how can knm announced while still begging the job from sinopec? is that guy crazy or what. someone must hv shxt on his head while giving birth

Posted by Husainuddin Yaakub > 2014-08-07 18:10 | Report Abuse

See my luck esok....hope ada gud news from knm...

Posted by alexisvics > 2014-08-07 18:32 | Report Abuse

Penipu Zhm540,nasib I tidak "take profit" spt yg dicadangkan oleh you.

Posted by FatBigBen > 2014-08-07 19:32 | Report Abuse

Ya loh .. Big liar zhm540..

Posted by riff > 2014-08-07 19:33 | Report Abuse

those who are hating knm are those who wished they have some shares there. ha2, huat ah.

Posted by chiongster1234 > 2014-08-07 20:11 | Report Abuse

Knn zhm, really penipu!!!

Posted by jasonlim84 > 2014-08-07 20:25 | Report Abuse

is the partner, not knm. may be end up just few million sub con job

Posted by special4u > 2014-08-07 21:16 | Report Abuse

From the annoucement tat KNM is a selected subcontractor of SEG, so the total contract USD1.329 billion how much wil go to KNM? Part of it or All contract value?

Posted by kytan > 2014-08-07 21:52 | Report Abuse

Looking ahead, we see two clear catalysts emerging. Firstly, KNM is a direct proxy to RAPID. With seven major tenders worth e.MYR60b in the pipeline, the addressable process equipment bid size is MYR18b (over a 4-year period). Assuming a 20-25% win rate, KNM’s potential RAPID orders of MYR4b-5b (MYR1b p.a.) would improve its annual orderbook by 50% to MYR3b (4-5 years visibility).

Secondly, executing the Peterborough project in 3-years’ time would transform its current cyclical business model to one with a more recurring income base. With an 18MW (Phase 1) waste-toenergy plant, KNM could generate MYR40m-MYR50m in net profit p.a. from FY17, based on a 10% IRR and 80% equity stake. Total capacity is 80MW.

Source: Maybank Research - 5 Jun 2014

Posted by kytan > 2014-08-07 21:55 | Report Abuse

http://www.orientaldaily.com.my/~oriental/index.php?option=com_k2&view=item&id=131162:42&Itemid=198
（吉隆坡7日讯）中石化炼化工程（集团）有限公司（SINOPEC Engineering（Group）Co Ltd）从国家石油子公司--PRPC提炼公司，以及Cracker私人有限公司手中，接获总值42亿5900万令吉的合约通知书。

另一方面，科恩马集团（KNM，7164，主板工业股）向大马交易所呈报的文告指出，其独资子公司--KNM Process Systems私人有限公司（KNMPS）被选为中石化炼化工程的分包商，以执行后者所贏取的该项合约。

Posted by gymkhana > 2014-08-07 22:08 | Report Abuse

sleep tight tonite after wait a few year ago...

Posted by Fei HK > 2014-08-07 23:28 | Report Abuse

gymkhana. same here n pleasant dreams. but should we be greedy n expect more to come?

Posted by MarilynMonroe > 2014-08-07 23:38 | Report Abuse

You shot! I love you.

ZHM540:
Muhammad Hafiz Aiman bin Zulfikri Halim
Hafiz.zhm540@gmail.com

Posted by Fei HK > 2014-08-07 23:45 | Report Abuse

someone famous n royalty?

Posted by tankahban > 2014-08-08 03:05 | Report Abuse

TP 2.00 within 5 month !

Posted by squirt > 2014-08-08 04:47 | Report Abuse

Tmrw reach new high!

Posted by gymkhana > 2014-08-08 07:18 | Report Abuse

today's my besday... hepi besday to myself... :-p

Posted by kangcs > 2014-08-08 09:11 | Report Abuse

hope hope