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Wednesday, December 22, 2010

KNM up on RM2.2b UK job; AmResearch ups TP to RM3.45 (Edge)

KNM GROUP BHD [] shares advanced on Wednesday, Dec 22 after its wholly-owned subsidiary KNM Process Systems Sdn Bhd secured a contract worth ?450 million (RM2.196 billion) to develop an 80MWe gross capacity biomass and waste recycling centre project in Peterborough, United Kingdom.

AmResearch Sdn Bhd maintained its Buy call on KNM with a higher fair value of RM3.45 (versus RM2.12 previously), given reaccelerated order flows.

“While we have not factored in the new contract into our forecasts, our fair value on the stock is raised based on an unchanged CY11F PE of 14 times, while our FY11F-FY12F earnings are raised by 38%-50%,”it said.

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