WHY U BUY AT 0.57... if WTI crude up..can fly to 0.60+ (if green too) , if not..all run.. IVAN2222 aiya...everyone bought high today ..i bought lump sum hantam 68000 shares at 0.57 when everyone was syok syok..now i sakit kepala la
KUALA LUMPUR: Maybank Research is maintaining its “buy” recommendation on oil and gas services provider KNM Group Bhd, with an unchanged target price of RM1.
The brokerage on Thursday said KNM’s recent win of an engineering, procurement, construction and commissioning (EPCC) job worth £88mil (RM581mil) in the United Kingdom was a positive development, as it showed KNM’s commitment and progress to transform its business model.
“We are positive on this development as KNM is committed and on track to remodel its business, from cyclical to steady-income base type,” Maybank Research said.
To recap, KNM received a letter of award from UK-based Drenl Ltd for the EPCC of a waste-to-energy facility at Beddington Lane, Croydon, UK. Drenl is a developer of materials recovery and low carbon renewable energy (RE) projects.
In addition to the EPCC contract, which was expected to take about 27 months to complete, KNM had also been awarded the Operations & Maintenance (O&M) job of the same WTE facility, subject to the finalisation of the terms and conditions.
“The EPCC works (its bread-and-butter) will provide a profit base to the group over the next two years whilst the O&M contract, once finalised, will offer KNM a recurring earnings base,” Maybank Research said.
“KNM was expected to register a 20%-25% gross margin from this EPCC RE job, decent in our view and a net profit contribution of RM25mil to RM35mil per annum,” it added.
Maybank Research said its forecasts remained unchanged for KNM, as it had incorporated RE wins of RM350mil-RM450mil per annum for 2015 to 2016.
“Apart from an earlier Cypark (RM278mil) and the recent Drenl RE job wins secured to-date, KNM is confident of bagging several more works over the next few months (four to six jobs locally and abroad),” it said.
Maybank Research said the key re-rating catalyst for KNM would be the crystallisation of the much-awaited BOO Peterborough WTE project.
Crude oil surge 1.5%. With the news of oil battle by US with releasing higher inventory still could not stop the oil price to drop... It means Russia will win the ultimate game now and Oil will continuous to rocket up
not just green only, DJ + Oil + KLCI + everything rally ~~~ fed interest hike go back MARS dy.. coming back 2017 or 2018...
oh ya, 581M..remember 581M contracts on 50cents counter.. 60cents next week, 70cents next next week, 80cents next next next week. wish everyone huat huat !
Hong Leong TP of 0.67 is good number. Today, KNM needs to break the 0.575 or higher. If today, oil rig count drops again, Monday will break the 0.60. If not, life still needs to goes on.
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....
pang72
52,241 posts
Posted by pang72 > 2015-10-08 18:33 | Report Abuse
i fell still have 2nd and 3rd waves... Let the banker with big position to goreng the price