waaa to reach RM 8 is maybe la in 4 years time who knows. But i agree with Koi King Ng that the price will be hovering around 0.50 - 0.80 or 1.00 by end of this year as KNM movement are directly impacted by oil price and hopefully oil price could move above 70 USD by end of this year.
KNM’s order book currently stands at around RM4bil, including the renewable energy project, called the EnergyPark Peterborough and which is worth around RM2bil.
Hong Leong Investment Bank (HLIB) Research estimates that KNM’s earnings will grow to RM127mil in 2015 and to RM141mil on 2016.
However HLIB’s projections have yet to factor in the potential profits from Peterborough and Thailand’s renewable energy business.
“In addition, the completion of acquiring Thailand’s ethanol business should add RM22mil to KNM’s bottomline in FY16 for the first phase,” it says.
Note that KNM has not completed its purchase of the biofuel project in Thailand.
The plant is estimated to produce 200,000 litres of ethanol per day for the first phase and has a capacity of up to 400,000 litres per day.
KNM is currently bidding for over RM13bil worth of jobs of which RM4bil-RM5bil are related to the Refinery and Petrochemicals Integrated Development (Rapid) project.
HLIB notes that KNM has a good chance of securing RM400mil subcontract jobs from the planned refinery in Rapid. It also notes that KNM had won RM1.2bil worth of contracts from the Rapid project last August.
Lee Swee Eng, KNM’s chief executive officer, is the single largest shareholder of the company with a 16.74% stake.
Other shareholders of KNM include the Employees Provident Fund (1.87%) and Norges Bank (1.56%).
As for its planned bond issuance, analysts aren’t concerned about it potentially raising KNM’s gearing levels.
Maybank IB Research says a full drawdown of the latest bond would increase KNM’s debt to RM1.45bil, giving it a net gearing ratio of 0.69 times.
“It is manageable in our view.
“We understand that the bond would be done in a few tranches on per-need basis,” it says in a report.
HLIB says for the first quarter of 2015, KNM’s net debt over earnings before interest, taxes, depreciation and amortisation had fallen to 1.7 times while its interest coverage ratio improved to 7 times as of March 31.
In the past, KNM had been on the radar of many investors, but the company was hit by the 2008 global financial crisis due to cashflow problems and delays in some of its projects.Since 2013, the company has been embarking on a series of restructuring exercises and disposing of its unprofitable operations.
As at March 30, KNM has total borrowings of RM1.28bil, with 43% or RM551.34mil made up of short-term loans.
It sat on RM118mil cash as at the first quarter ended March 30 from RM208.51mil in the previous quarter.
Earnings wise, KNM’s net profit had doubled to RM39.75mil in 2014 from RM19.9mil in 2013. At its current share price of 59.5 sen, it is trading on a historical price earnings ratio of 14.3 times.
Again? dang it if this is true wat 3rd time in 3 years? so WC coming soon :( :(
halo General Lee, please la let your poor bravehearts go la - dun repeatedly torture them - yes they're dumb but they are also loyal to u - how many times u want to ask them to support u - why buy the Thai %^$# when u have no money. Pls clean your house first before going on another project using OPM in this case your LOYAL Bravehearts - when the reporter wrote shareholders had been enduring a lot - dunno whether to cry or laugh - what a joke :( :( :( hope above article is juz a rumor but knowing the Big Bad General will not be surprised if it's true.
Frank, you just read the 7/11 news?? LOL... it is third time within 14months... it seems to be a risk there, but also meaning that company is expanding aggressively??
LOL hissyu2 I was being kind - to the loyal bravehearts :) Risk? the last time they expanded aggressively I lost my pants this time if it happens again - I'll tell the bravehearts I told u so - never mess with the big bad General LOL Any good luck - need plenty of that when u're dealing with part of the Axis of Evil :)
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....
k8118k
981 posts
Posted by k8118k > 2015-07-02 10:08 | Report Abuse
today affin tp 0.9