RHB Research upgrades KNM to outperform

RHB Research upgrades KNM to outperform

Written by RHB Research Institute
Thursday, 21 January 2010 09:19


KUALA LUMPUR: RHB Research Institute has upgraded KNM to outperform from underperform on potential stronger orderbook in FY10-11.

“We have raised our fair value to 91 sen a share (from 65 sen a share previously) which is now based on 13 times FY10 PER (vs 11x FY10 PER previously).

“Given potential upside of 17% to our new fair value, we have upgraded the stock to Outperform (from Underperform previously),” it said on Thursday, Jan 21.

RHB Research said KNM management expects FY10-11 orderbook to rise from RM2.8 billion given stronger demand for process equipment arising from new oil sands investments as well as increase in petrochemical plants and refineries.