Guys look up for this stock.... sense it would go high in near term.....
Project represents firm’s drive into renewable, clean energy sector
PETALING JAYA: Oil and gas process equipment maker KNM Group Bhd's wholly-owned subsidiary KNM Process Systems Sdn Bhd (KNMPS) has secured a 450mil (RM2.196bil) engineering, procurement, construction and commissioning (EPCC) contract for a biomass and waste recycling centre project in England.
KNM told Bursa Malaysia that KNMPS yesterday entered the agreement for the EPCC of works towards the development of an 80MWe gross capacity energy from biomass and waste recycling centre project called EnergyPark Peterborough in Peterborough.
The contract with Peterborough Renewable Energy Ltd spans four years.
“This project represents KNM's drive into the renewable and clean energy sector,” KNM said.
The company said it was not expected to have any material impact to KNM Group's financial performance for this year ending Dec 31.
However, the project was expected to contribute positively to its earnings for the next four financial years.
“The project is subject to certain risks mainly in the power and renewable energy industries and legislation on clean energy in the United Kingdom.
“These include changes in general economic conditions such as, but not limited to, inflation, taxation, foreign exchanges, interest rates, labour and material supply, changes in business and operating conditions such as, but not limited to, government and statutory regulations and deterioration in prevailing market conditions,” KNM said.
KNMPS is mainly involved in the design, engineering, procurement and manufacturing of process equipment, including without limitation pressure vessels, reactors, columns and towers, drums, heat exchangers, air finned coolers, process gas waste heat boilers and specialised shell and tube heat exchangers.
It also provides technical and project management services in relation to process equipment, plant facilities and general facilities for the oil, gas, petrochemicals, minerals processing and renewable energy industries.
Last month, KNMPS won a RM680mil bid to supply technical documentation, equipment and services for the development of gas condensate fields in Uzbekistan.
Showing posts with label KNM. Show all posts
Showing posts with label KNM. Show all posts
Tuesday, December 21, 2010
Wednesday, December 1, 2010
KNM climbs on South Africa pact (reverse split done at 2.08)??
KNM Group Bhd, an oil and gas services provider, advanced 1.4 per cent to RM2.11, its first increase in three days.
The company and Aveng Ltd agreed to form a joint venture related to the fabrication of steel products in South Africa.
The joint venture will allow KNM to tap Aveng’s marketing and networking relationship, the Malaysian company said in a statement. - Bernama
The company and Aveng Ltd agreed to form a joint venture related to the fabrication of steel products in South Africa.
The joint venture will allow KNM to tap Aveng’s marketing and networking relationship, the Malaysian company said in a statement. - Bernama
Wednesday, November 24, 2010
KNM rises on higher Q3 net income
KNM Group Bhd, a Malaysian oil and gas services provider, rose the most in seven weeks in Kuala Lumpur trading after reporting a 76 per cent jump in third-quarter net income.
Its shares climbed 3.5 per cent to 45 sen at 9:03 a.m. local time, set for their biggest gain since October 4. -- Bloomberg
Its shares climbed 3.5 per cent to 45 sen at 9:03 a.m. local time, set for their biggest gain since October 4. -- Bloomberg
Thursday, November 18, 2010
KNM wins US$216m job in Uzbekistan
KNM Group Bhd, a Malaysian oil and gas services provider, said in a statement it won a US$216 million contract to supply equipment and services for the development of gas condensate fields in Uzbekistan. -- Bloomberg
Sunday, October 3, 2010
4-10-2010 Hwangdbs KNM Group (RM0.46; Buy; Price Target: RM0.55; KNMG MK) Second lease
Second lease of life
• Better times ahead, with money ploughing back into
E&P and O&G development
• Growth opportunities reflected in rising tender book
with c. RM3.0b worth of jobs at 20% hit rate
• Upgrade to Buy; valuation is attractive given strong
earnings growth ahead
British American Tobacco (RM48.40;
• Better times ahead, with money ploughing back into
E&P and O&G development
• Growth opportunities reflected in rising tender book
with c. RM3.0b worth of jobs at 20% hit rate
• Upgrade to Buy; valuation is attractive given strong
earnings growth ahead
British American Tobacco (RM48.40;
Monday, May 3, 2010
KNM Group expects to perform better this year Read more: KNM Group expects to perform better this year
PROCESS equipment manufacturer KNM Group Bhd (7164)expects to perform better this year on lower tax rates and higher exploration and production activities.
"We recently spoke to the management of KNM following the breakdown of its proposed takeover offer. We believe that investors have overlooked the business aspect in the last few months after the takeover news first broke off back in February 2010," wrote HWANGDBS Vickers Research Sdn Bhd (HDBSVR) analyst Lee Wee Keat in a note to clients yesterday.
KNM's substantial shareholder and group managing director Lee Swee Eng had recently aborted his proposed offer via Bluefire Capital Group to buy KNM's entire business at RM0.90 per share.
Last year was a bad year for KNM as oil majors held back spending in view of low and volatile oil prices.
"We understand that KNM managed to secure only RM1.5 billion worth of jobs last year, and capacity utilisation was only 65 per cent compared with 80 per cent in 2008.
"(Profit) margins for the jobs secured were also slimmer as intense competition over the modest number of jobs available led competitors to cut prices," he said.
Lee expects margins for the next few quarters to remain sluggish as the company completes jobs secured last year. He estimated that the average completion ranges from 15 to 18 months per project.
"We gather that margins have improved since, but have yet to recover to previous levels."
Lee also said concerns over KNM's orderbook replenishment persists.
"KNM has a RM2.4 billion orderbook, with RM400 million of new contracts secured thus far. This is slow, but we foresee a rise in exploration and production activities in the second half of this year to trigger contract flows."
The group currently has a RM11 billion tender book comprising jobs mostly in the Middle East and Europe.
However, Lee has cut his new wins assumption for KNM to RM1.7 billion from RM1.8 billion previously for the financial year ended December 31 2010 (FY10), based on current tender book and historical hit rate of 15 per cent.
KNM's FY09 audited net profit stood at RM260.6 million after adjusting for the tax incentive, which was granted by the Finance Ministry on April 7 2010 to its subsidiary KNM Process Systems Sdn Bhd for the acquisition of Borsig.
Totalling RM1.4 billion, the tax incentive will apply for a period of four years from 2009.
"We expect a lower tax rate going forward as local operations will be spared from paying taxes. Also, there was no impairment charge for Borsig. Borsig contributed about 45 per cent of total FY09 earnings," said Lee.
The research firms has upgraded KNM to "hold" from "fully valued", but lowered its target price to RM0.60 from RM0.65.
"We expect some overhang in the share price given the EPF's recent heavy selling, but at the current price level, we believe that most of the negatives have been priced in. KNM has also started to buy back its shares.
"We believe KNM's strong RM571.7 million cash balance should support more buyback on share price weakness," said Lee.
Read more: KNM Group expects to perform better this year http://www.btimes.com.my/Current_News/BTIMES/articles/03knm/Article/index_html#ixzz0mvq0ZOgg
"We recently spoke to the management of KNM following the breakdown of its proposed takeover offer. We believe that investors have overlooked the business aspect in the last few months after the takeover news first broke off back in February 2010," wrote HWANGDBS Vickers Research Sdn Bhd (HDBSVR) analyst Lee Wee Keat in a note to clients yesterday.
KNM's substantial shareholder and group managing director Lee Swee Eng had recently aborted his proposed offer via Bluefire Capital Group to buy KNM's entire business at RM0.90 per share.
Last year was a bad year for KNM as oil majors held back spending in view of low and volatile oil prices.
"We understand that KNM managed to secure only RM1.5 billion worth of jobs last year, and capacity utilisation was only 65 per cent compared with 80 per cent in 2008.
"(Profit) margins for the jobs secured were also slimmer as intense competition over the modest number of jobs available led competitors to cut prices," he said.
Lee expects margins for the next few quarters to remain sluggish as the company completes jobs secured last year. He estimated that the average completion ranges from 15 to 18 months per project.
"We gather that margins have improved since, but have yet to recover to previous levels."
Lee also said concerns over KNM's orderbook replenishment persists.
"KNM has a RM2.4 billion orderbook, with RM400 million of new contracts secured thus far. This is slow, but we foresee a rise in exploration and production activities in the second half of this year to trigger contract flows."
The group currently has a RM11 billion tender book comprising jobs mostly in the Middle East and Europe.
However, Lee has cut his new wins assumption for KNM to RM1.7 billion from RM1.8 billion previously for the financial year ended December 31 2010 (FY10), based on current tender book and historical hit rate of 15 per cent.
KNM's FY09 audited net profit stood at RM260.6 million after adjusting for the tax incentive, which was granted by the Finance Ministry on April 7 2010 to its subsidiary KNM Process Systems Sdn Bhd for the acquisition of Borsig.
Totalling RM1.4 billion, the tax incentive will apply for a period of four years from 2009.
"We expect a lower tax rate going forward as local operations will be spared from paying taxes. Also, there was no impairment charge for Borsig. Borsig contributed about 45 per cent of total FY09 earnings," said Lee.
The research firms has upgraded KNM to "hold" from "fully valued", but lowered its target price to RM0.60 from RM0.65.
"We expect some overhang in the share price given the EPF's recent heavy selling, but at the current price level, we believe that most of the negatives have been priced in. KNM has also started to buy back its shares.
"We believe KNM's strong RM571.7 million cash balance should support more buyback on share price weakness," said Lee.
Read more: KNM Group expects to perform better this year http://www.btimes.com.my/Current_News/BTIMES/articles/03knm/Article/index_html#ixzz0mvq0ZOgg
Thursday, September 17, 2009
KNM unit takes 50pc stake in Verwater
KNM GROUP Bhd announced today that its wholly owned subsidiary KNM International Sdn Bhd has completed its subscription for 100 ordinary shares of RM1.00 each, representing 50 per cent equity stake in a joint venture company known as Verwater Industrial Services (Malaysia) Sdn Bhd (VISM) for RM100.
VSIM was incorporated on August 11, 1992, as a private limited company under the Companies Act 1965, the group said in a statement.
It is presently dormant although its main activities are in the business of relocating and jacking of tanks, catalyst change-out and chemical cleaning works. - Bernama
VSIM was incorporated on August 11, 1992, as a private limited company under the Companies Act 1965, the group said in a statement.
It is presently dormant although its main activities are in the business of relocating and jacking of tanks, catalyst change-out and chemical cleaning works. - Bernama
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