KNM

 

Before 2008, this was a company in the O&G sector with fast growth.  It was growing very fast due to frequent acquisition.  The market players gave it a high PE.  Then it swallowed Borsig.  This was a very large company and KNM financed this acquisition with a lot of debt.

When 2008 came, its business declined.  Its business shrunk and EPS dropped.  Together with contraction of its PE, its share price dropped quickly.  It dropped from RM 2.13 per share at the end of  2010 to RM 0.42 at end of 2012.  Its huge debt became a big burden.

Its business has not recovered since.

Recent moves by other significant shareholders are interesting.

The lesson here is to recognise that not all growth is good.  Growth maybe good increasing the intrinsic value of the company.  Growth can also be bad, destroying the intrinsic value of the company.  Growing its existing business organically is generally safer than growth engineered through acquisition.  Acquiring another has its associated risks.

KNM’s orderbook balloons to above RM4 billion

by Jonathan Chia jonathanchia@theborneopost.com. Posted on December 23, 2010, Thursday

KUCHING: KNM Group Bhd’s (KNM) orderbook of above RM4 billion should be able to keep the company busy for the next two years. The company’s current tenderbook stands at more than RM16 billion.

BIOMASS ENERGY GENERATION PLANT: KNM recently announced that its 100 per cent subsidiary KPS, has entered into an EPC contract to generate energy from biomass and a waste recycling centre known as ‘EnergyPark Peterborough’ in Peterborough, the UK. — Photo by Agragas, Inc

KNM recently announced that its 100 per cent subsidiary KNM Process Systems Sdn Bhd (KPS), had entered into an engineering, procurement and construction (EPC) contract towards the development of a plant with gross capacity of approximately 80 megawatts (MW) to generate energy from biomass and a waste recycling centre known as ‘EnergyPark Peterborough’ in Peterborough, the UK.

The contract from Peterborough Renewable Energy Ltd (PREL), valued at £450 million (RM2.2 billion) would cover the duration of about four years starting from the commencement date which was yet to be determined.

“We gather that the amount would likely be equally spread over the four-year period, which would amount to about RM500 million a year.

“We also understand that this EPC project includes the structural construction, which would likely be carried out by a third party, the gross margin expected to be more than 20 per cent and although the commencement date is yet to be determined, there is no risk to KNM as we understand that the deposit received by the company is enough to cover the cost of initial material to be purchased,” said OSK Research Sdn Bhd’s (OSK Research) analyst, Jason Yap.

Yap noted that there was no change to KNM’s financial year 2010 (FY10) to financial year 2011 (FY11) earnings.

“This is because we had earlier assumed some orderbook replenishment for the company based on the success rate guidance from its management,” he added.

Given the positive investor sentiment on the stock, he believed there would be more upside to its share price since this stock was traditionally driven by positive news flow such as contract announcements.

Hence, OSK Research was upgrading its target price for the company to RM3.45 per share, which was based on a higher price earnings ratio (PER) of 14 times FY11 earnings per share (EPS).

“Our valuation is slightly higher than the current industry average of 13 times because we believe that at the rate the share prices of most oil and gas (O&G) companies are performing, we think that the industry average would soon catch up to 14 times.

“As for KNM, we believe its share price would react positively to this big one-off contract in the short term,” Yap said.

However, as for the longer term sustainability of its share price, he believed that investors would need more assurance in the form of continuous contracts flow, on which he was still not entirely certain since the global O&G industry had not fully recovered in the past 12 months although crude oil prices had stabilised at about US$80 per barrel.

Yap noted that KNM was a global O&G process equipment company, which made its business dependent on the health of the global economy and not Malaysia alone.

http://www.theborneopost.com/?p=81848

KNM settles termination of oil sands project with Fort Hills

November 5, 2010, Friday

KUCHING: KNM Group Bhd’s (KNM) subsidiary, KNM Process Equipment Inc (KNMPE) executed a settlement and release agreement and a right of consideration agreement with Fort Hills Energy LP (Fort Hills) and Suncor Energy Inc (Suncor) to terminate an oil sands project for the Fort Hills Froth Treatment (FHFT) project in Canada.

CONTRACT SETTLEMENT: KNMPE has executed a settlement and release agreement and a right of consideration agreement with Fort Hills and Suncor to terminate an oil sands project for the FHFT in Canada.

According to OSK Research Sdn Bhd (OSK Research), Fort Hills would pay RM9.3 million to KNMPE in addition to the progress payment previously paid as full and final compensation for the termination of the contract.

KNM had excluded all of the oil sand orders from its overall order book. Its existing order book of more than RM1.5 billion should be able to keep the company busy for the next nine to 12 months which did not include any more oil sand projects.

In consideration of the mutual agreement, Suncor (as partner of Fort Hills) would also pay KNMPE the first consideration for performance of identified products for five years from the date of the agreement.

Despite this contract termination, OSK Research noted that KNM’s tenderbook was now worth more than RM10 billion which was reflective of the recovery in the global economy.

In a separate report, AmResearch Sdn Bhd (AmResearch) remained cautious of KNM’s target of securing new orders of RM2 billion for the financial year 2010 forecast (FY10F) as the group’s quarterly replenishment had struggled to reach RM500 million since its completion of its Borsig acquisition back in 2008.

In particular, the group had only secured RM1 billion in new orders for FY10F to date with a target to secure another RM1 billion by year-end.

Based on this, AmResearch pointed out that KNM’s plant utilisation rate was likely to remain just above its operating breakeven level of 60 per cent.

To conclude, OSK Research pegged the group’s target price at RM0.56 per share while AmResearch pegged the group’s target price at RM0.42 per share.

http://www.theborneopost.com/?p=73029

KNM Group: Sell, fair value RM0.42

AMRESEARCH Sdn Bhd has maintained its "sell" call on KNM Group Bhd (7164) and said that a re-rating of the stock at this point is still premature.

Its fair value of the stock at 42 sen per share remains unchanged, based on a financial year 2010 forecast (FY10F) price earnings ratio of 12 times.

"We retain our forecasts at this juncture, given that KNM's order book replenishment remains uncertain. But we highlight that our FY10F-FY12F earnings estimates are 22-36 per cent below street estimates," it said in a report yesterday.

The research house said the re-rating was premature due to depressed breakeven utilisation levels, likely continuation of margin pressure in second half of FY10F, clouded prospects of increasing its order book, and KNM's poor earnings deliverance over the past five quarters.

As the group's operating costs are likely to remain high, KNM's margin is likely to remain under pressure in 2HFY10 if there is no significant improvement in order for replenishment over the next two quarters.

The research house said it remains cautious over KNM's target of securing new orders of RM2 billion in FY10F.

Read more: KNM Group: Sell, fair value RM0.42 http://www.btimes.com.my/Current_News/BTIMES/articles/jknm17/Article/index_html#ixzz0riXmFfuQ

KNM Group book order at RM2.1b

KNM Group book order at RM2.1b
Tags: Borsig | KNM Group | Lee Swee Eng

Written by Koo Jie Ni
Wednesday, 23 June 2010 15:54


KUALA LUMPUR: KNM GROUP BHD [] has increased its order book to RM2.1 billion as for now from RM1.5 billion a year ago, says its managing director Lee Swee Eng.

Lee, who is also the acting chairman, said on Wednesday, June 23 the book order was enough to last 18 months.

He added KNM would leverage on the TECHNOLOGY [] from Borsig to move up value chain.

Borsig is a German company whose subsidiaries are in the development, manufacture, installation and maintenance of plant and processing equipment in the chemical, petrochemical, oil and gas, power and industrial service industries.

KNM had on Feb 29, 2008 signed a sale and purchase agreement to acquire 100% of Borsig for cash consideration of Euros 350 million. The cash consideration was then equivalent to about RM1.669 billion based on an exchange rate of RM4.77:Euro1.00.

A quick look at KNM (4.5.2010)

A quick look at KNM (4.5.2010)
http://spreadsheets.google.com/pub?key=tcCGJ_jnIm-UI-eucHCcPlA&output=html

KNM Group expects to perform better this year

4.5.2010


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#ixzz0mvpKFNdB

How much money punters lost betting on the possibility that the KNM takeover would have gone through at 90 sen a share

Wednesday April 21, 2010

The dangers of offers conditional on due diligence


THE anti-climax that hit investors in KNM Group Bhd after the attempted takeover fell through raises some issues.

For minority shareholders, the KNM case highlights the downside of the takeover route involving buying the assets of listed companies.

Under this route, buyers are allowed to conduct due diligence on the assets they are buying.

In comparison, when a buyer is making a general offer for the shares of a target company, it only has access to publicly available information on the company it is buying.

In such a case, there is more clarity on whether the deal will go through. It all depends on the acceptance level of the target company’s shareholders. There can hardly be a situation where a price is revised downwards.

But in a takeover of assets situation, the buyer can withdraw the offer or lower his price after the due diligence.

On the flip side, deal-makers say the opportunity to conduct due diligence on the assets is one of the main advantages of the assets and liability route of takeovers.

Some buyers tend to opt for this route in cases where the target company has very large operations, such as banks, or has assets in diverse geographical locations, like KNM.

That the threshold of shareholder approval for this type of takeovers may be raised to 75% from a simple majority, does not mean that this takeover route will disappear.

While it may be harder for buyers to take over companies (if the rule change is implemented), this route still remains attractive to buyers because it gives the opportunity for due diligence.

Investors should be aware that there is a chance buyers taking over companies using this method could change their minds after their due diligence, or reduce their prices.

That could be advice too late for those who took the bet that the KNM deal would have been done at the indicative price of 90 sen a share.

But it may be sound advice for investors buying into EON Capital Bhd (EON Cap).

While the RM7.30 per share offer by Hong Leong Bank Bhd (HLB) may look attractive, coupled with the possibility that another bidder could be interested, investors should look at the fundamentals of EON Cap.

That would give them a good indication of how the buyer would assess EON Cap and thereby, the price they would be willing to pay for it, post due diligence.

Some points to ponder can be found in recent analyst reports on EON Cap. For example, EON Cap’s Islamic banking pre-tax profits seem to be on a downtrend, raking in only RM4.9mil in its fourth quarter ended Dec 31, 2009, compared with more than RM30mil the year before.

DBS Vickers Securities had said in an earlier report that EON Cap has some exposure to collateralised debt obligations in the Middle East that could potentially see further provisions. HLB’s due diligence will surely examine this issue thoroughly.

In addition, it expects EON Cap to incur higher credit costs as it may need to bump up its loan loss provisioning, which stood at 84.9% as at September 2009, to the industry norm of closer to 100%.

Another issue that the buyers of EON Cap should pay attention to is the weighty exposure EON Bank has to small and medium enterprise and hire purchase loans, which are deemed riskier than other loan segments.

HLB could also discover that it has to pour in more money into EON Cap in the merger exercise to ensure, for example, that both banking groups enjoy the same credit ratings and best practices and information technology systems at their branches.

This in turn could have an impact on the price the buyer is willing to pay for the asset.

Learning from the experience of KNM, investors should dissect analysts’ target prices of EON Cap to see if these prices are inflated by the potential takeover.

Knowing the fair value of EON Cap, excluding the offer on the table, should help investors know the downside risk to buying into EON Cap today.

Deputy news editor Risen Jayaseelan wonders how much money punters lost betting on the possibility that the KNM takeover would have gone through at 90 sen a share.

http://biz.thestar.com.my/news/story.asp?file=/2010/4/21/business/6097857&sec=business


Read also:

KNM Group: Hold, target price 90 sen

Valuation of KNM and Sustainable Growth Companies

In the absence of clarity in future earnings, very low NTA and significant debt, how does one value KNM?

? 10 sen / share

A quick look at KNM
http://spreadsheets.google.com/pub?key=tnYPvXKu8my2Fsri8qR60oA&output=html


A related story:

One-time events that help grow companies for a short period usually affect prices significantly, but such changes are often temporary.

In the mid-1970s, again in the mid-1990s, and once again in the mid-2000s when oil prices went up quickly, many companies supplying oil-drilling services became high-growth companies.  However, they could not sustain their growth.

For example, Global Marine, an otherwise well-managed company, was trading at around $35 per share in late 1997, but oil prices went down in 1998, and Global Marine's stock price quickly retreated to less than $8 per share.  

A careful investor looking for an outstanding long-term growth company would have avoided Global Marine because the growth was from a one-time event.

It was and can be difficult to know which companies would have sustainable growth.

On the other side, note that at the time of going public, even Microsoft was not an outstanding growth stock because it was not clear that the company could sustain its growth.  However, over time, it became clear that Microsoft's products were immensely successful.  Microsoft was a near monopoly, and the number of customers for those products would increase for many years to come.  At that point, it was a good growth stock worth investing in.

KNM 1.4.2010

Bursa Malaysia
Company Announcement


Name of Principal Officer : Ho Guan Ming

Description of securities	Date of transaction	Direct/Indirect interest	No. of securities disposed	% of securities	Disposal price per share (RM)
Ordinary shares	26.3.2010	Direct	50,000	0.001	0.70

KNM Group: Hold, target price 90 sen

HWANGDBS Vickers Research has maintained a "hold" call on oil and gas firm KNM Group (7164), with a price target of 90 sen.

"Although current share price offers a potential 17 per cent upside to the proposed offer price of 90 sen per share, we are keeping the call at this juncture, having taken into consideration several risk factors," the stockbroker said in a March 23 report.

The risks include a potential lower offer price, a higher risk on earnings; and negative investor's sentiment on the stock.

"To the disappointment of many investors, KNM announced to the exchange at market close yesterday that BlueFire Capital Group (Bidco) has yet to conclude its discussion with the firm," it noted.
The brokerage was referring to the offer from Bidco, an entity controlled by KNM Group's founder Lee Swee Eng and two foreign funds, to buy the entire business and undertakings of KNM Group.

The board of directors of KNM has not extended the exclusivity period granted to Bidco to undertake due diligence and satisfy the other conditions of the proposal, but both parties have agreed "to endeavour" to conclude discussions by April 16.

"We view this news negatively and think this could be a sentiment dampener on the already weak share price. The announcement may raise concerns of whether the proposal will materialise.

"In addition, there is also the possibility of a lower revised offer price from Bidco, considering the provision for foreseeable losses and asset write-downs undertaken by the company in its recent fourth quarter 2009 results announcement," the report said.

http://www.btimes.com.my/Current_News/BTIMES/articles/bv25e/Article/


Comment:
Two years ago, KNM was riding high.  It was the darling of investors.  Its price was rising at dizzy pace and those who bought the shares gained hugely.  Oil price was high and the industry was bullish.  KNM was well placed to benefit from the industry's good fortune.  It was growing very fast and was actively acquiring companies in related fields.  Though highly profitable with good profit margin, the fast growth required funding with new shareholders' capitals and debt.  Through the many acquisitions, the balance sheet of KNM carries a large non-tangible asset value and debts.  Its biggest acquisition of Borsig was however poorly timed and it coincided with the global financial crisis of 2008.

The oil and gas industry was similarly affected.  The oil price plunged reflecting the supply-demand forces prevailing for this period.  Investment in this industry slowed to a trickle.  Likewise, contracts were canceled, delayed or postponed.   Revenues and earnings in KNM fell substantially.  Though the whole year earning was positive with positive cash flow, the last quarter's earning was a negative; this is worrying.  The management contention that earnings will be positive next year is hardly cast in stone.

There is no doubt that KNM's business fundamentals has deteriorated.  The questions posed:

• Will this be temporary or will this be permanent?
• How long will the oil and gas sector take to recover, and with it KNM's fortune?
• Will KNM be able to service and pay its debts with its present level of earnings?
• Will KNM survive this trying period to emerge strong again after this period?

At a price of 80 sen per share, KNM's market capitalization was around MR 3 billions.  Its NAV is just below 50 sen.  It's market price is still at a premium to its NAV.  More interestingly, or worrying, its NTA is just about 4.7 sen, reflecting the large amount of goodwill in its balance sheet.

The offer to take KNM private at around 90 sen has introduced another factor into the pricing of KNM shares.  If not for this (still an uncertain) offer, the price of KNM might be much lower in the market.

However, for those looking to buy into KNM, given the large uncertainty and risk, a discount of less than 20% to the 90 sen based on the present price is hardly enticing.   Should you sell then?  The upside is at best capped but there is also significant downside risk if the offer to take it private did not materialise at 90 sen.  Your assessment of the upside reward/downside risk ratio would guide you to make this decision.

Sellers causing Steep drop in price of KNM

A look at NTA/Share of KNM

KNM GROUP BERHAD
(Company No:521348-H)
( Incorporated in Malaysia )

Net assets per share attributable to equity holders of the parent (RM)
2009 0.48  
2008 0.46

No of shares (m)

2009 3998.76

2008 3998.76

NTA (m) (RM)

2009 194.427  

2008 39.919 

NTA/Share (RM)

2009 0.049

2008 0.010

http://spreadsheets.google.com/pub?key=tXdVkNO6CAd_pM5620QvUgg&output=html

KNM's shareholders facing uncertainties

KNM: No extension for BlueFire

KNM Group Bhd (7164) said it will not extend BlueFire Capital Group Ltd's exclusivity period for due diligence, which expired yesterday.

BlueFire, an entity controlled by founder and group managing director Lee Swee Eng, had offered to buy out KNM at 90 sen per share, valuing the process equipment maker at RM3.6 billion.

Lee, together with GS Capital Partners VI Fund LP, a private equity fund of the Goldman Sachs Group Inc, and Mettiz Capital Ltd, had made a conditional offer to buy KNM's assets on February 4.

The offer was conditional upon a due diligence that should be completed by March 22 and which includes a final valuation of the assets within the group. Lee owns 23.64 per cent of KNM.

In a filing to Bursa Malaysia yesterday, KNM said BlueFire is "still in continued discussions with the company and the parties have agreed to endeavour to conclude discussions by April 16, 2010".
It added that an announcement will be made on the outcome of such discussions when they are concluded.

Over 90 per cent of KNM's revenues are realised from the export markets and international business.

KNM posted a loss of RM31 million for its fourth quarter ended December 31 2009, which was a significant dip from its third quarter profit of RM32 million.

As a result of the poor fourth quarter, KNM's full-year 2009 net profit almost halved to RM171 million, compared with the previous year's RM336.4 million.

The main reason for the poor fourth quarter was due to provisioning for the foreseeable losses in its operations in Brazil, Canada and Indonesia, coupled with a revaluation of the group's Canadian properties. It was the result of heightened competition in some of the lower margin business segments of the group.

http://www.btimes.com.my/Current_News/BTIMES/articles/knm22/Article/index_html

MD proposes to buy KNM business for RM3.6bil

Friday February 5, 2010
MD proposes to buy KNM business for RM3.6bil
By LEE KIAN SEONG


lks@thestar.com.my

PETALING JAYA: KNM Group Bhd’s founder and group managing director Lee Swee Eng has proposed to acquire the entire business and undertakings of KNM in a deal worth RM3.6bil.

In a filing to Bursa Malaysia yesterday, KNM said BlueFire Capital Group Ltd, an entity controlled by Lee, had proposed an equivalent price of 90 sen for each issued ordinary share of KNM.
Lee Swee Eng – the founder and group MD of KNM

The company’s current market capitalisation is about RM3bil as stated by Bloomberg.

According to Bursa, Lee is currently the major shareholder of KNM with 23.74% direct and indirect shareholding in the company as at June 8, 2009.

“The proposal is subject to the satisfactory completion of due diligence, receipt of firm financing commitments, and negotiation and execution of definitive documentation relating to the proposed transaction,” said KNM.

It said BlueFire was acting in collaboration with GS Capital Partners VI Fund L.P and Mettiz Capital Ltd in the acquisition and that its international adviser was Goldman Sachs (Singapore) Pte.

“Pursuant to the above, the board has granted BlueFire a limited exclusivity period up to March 22, 2010 in which to complete due diligence and satisfy the other conditions of the proposal, subject to confidentiality undertakings,” it said.

KNM will also promptly engage its legal and financial advisors to assist KNM and its board in evaluating and negotiating the definitive terms of any transaction.

The funding structure and the reason of acquisition were not stated in the statement to Bursa. Efforts to contact Lee proved fruitless.

Lee was quoted by StarBiz on March last year as saying that a management buyout would be considered for KNM Group but it would be very difficult to raise funds in the current environment.

TA Securities analyst Kaladher Govindan said the offer price was about 13 times the company’s price earnings and it was a fair value for the offer.

“Lee’s intention to acquire the company might be due to the improvement in the oil and gas (O&G) industry and the lower entry price for the acquisition,” he told StarBiz.

For the third quarter ended Sept 30, 2009, KNM registered a net profit of RM31.9mil with revenue of RM458.3mil. Its net profit for the first nine months was RM201.8mil with revenue of RM1.4bil.

KNM’s all-time high was at RM2.44 on Jan 8, 2008. It closed at 75 sen yesterday.

KNM, which was established in 1990, is involved in the manufacture of process equipment and processing units for O&G, petrochemicals, minerals processing, desalination, renewable energy, chemicals, steam generation, power and environment industries.

The group currently operates 19 manufacturing facilities and engineering centres in 12 countries, offering a diversified range of products and services to its clients in more than 60 countries.

Over 90% of its revenues are realised from the export markets and international business.

http://biz.thestar.com.my/news/story.asp?file=/2010/2/5/business/5618633&sec=business

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.

KNM bags RM143m contract in Thailand

KNM bags RM143m contract in Thailand

Tags: Impress Ethanol Co Ltd | KNM Group Bhd | KNM Process Systems Sdn Bhd | KNM Projects (Thailand) Co Ltd | KNMPS | KNMPT

Written by The Edge Financial Daily
Thursday, 07 January 2010 23:30

KUALA LUMPUR: KNM GROUP BHD [] has secured a RM143 million contract from Impress Ethanol Co Ltd to build a bioethanol plant in Thailand.

The contract involves the engineering, procurement, CONSTRUCTION [] and commissioning of a 200,000 litres per day cassava-based bioethanol plant in Chachaengsao, Thailand.

The new job was secured through its wholly owned subsidiary KNM Process Systems Sdn Bhd (KNMPS) and affiliated company KNM Projects (Thailand) Co Ltd (KNMPT). The project is expected to be completed within 18 months.

The order is expected to contribute positively to KNM's earnings for the financial years ending Dec 31, 2010 and Dec 31, 2011.

http://www.theedgemalaysia.com/business-news/157043-knm-bags-rm143m-contract-in-thailand.html

KNM upgraded to 'buy'

KNM upgraded to 'buy'


Published: 2009/10/23


KNM Group Bhd. was upgraded to “buy” from “sell” at Maybank Investment Bank Bhd on expectations of higher orders for the oil and gas services provider.

The company’s target price was raised to RM1.02 from 69 sen, Maybank said in a report today. -- Bloomberg

KNM 19.10.2009

Valuation
http://spreadsheets.google.com/pub?key=tRskke5FybslzPlCGkTtM4Q&output=html

This stock fell off the cliff.  Presently, it is not classified as an investment grade stock.  There is much speculation on this stock.  There is some uncertainty of its business performance in the near term.  Hopefully, clarity will surface soon.

Latest qtr EPS (Q2, 09) = 1.82 sen
annualised EPS = 1.82 x 4 = 7.28 sen
Current Price = $ 0.82
Current PE (annualised EPS) = 82 / 7.28 = 11.3

KNM adds RM155m to order book

KNM adds RM155m to order book

Tags: Borsig Boiler Systems GmbH | Jebel Ali Free Zone | KNM Group Bhd | new orders

Written by The Edge Financial Daily
Tuesday, 06 October 2009 00:29

KUALA LUMPUR: KNM GROUP BHD []’s wholly owned units in Malaysia, Germany and Dubai, have collectively secured RM155 million worth of new orders from Sept 24 to Oct 5, the company said on Oct 5.

KNM said FBM-KNM FZCO, a unit incorporated in Dubai’s Jebel Ali Free Zone, won a contract from Danieli & C Officine Meccantiche SpA for reactor vessels for the Gulf Steel Plant project in Egypt; KNM’s Germany-incorporated Borsig Boiler Systems GmbH won an order for the engineering, supply and installation of steam boilers at Chemelot Industrial Estate in Geleen, Netherlands, from EdeA VOF; while KNM Process Systems’ contract was from Technip Italy SpA, for shop assembly columns for the Jubail Export Refinery project in Saudi Arabia.

KNM expects the orders to contribute positively to its earnings for the years ending Dec 31, 2009 and 2010.
KNM added 1.5 sen to 76 sen with 19.05 million shares done on Oct 5.

http://www.theedgemalaysia.com/business-news/150666-knm-adds-rm155m-to-order-book.html