KGB

KGB

Postby winston » Tue Mar 31, 2020 9:58 am

not vested

Trading Buy: KGB - 0151
Decent orderbook and growth to support share price*
(Last price: RM0.805, Potential upside +24.2%)*


Company Profile

KGB was founded in 2000 to provide Ultra High Purity (UHP) gas delivery solutions to the electronics and semiconductor industry. Over the years, KGB has expanded its service offerings and ventured into new markets and have successfully secured clients from the oil & gas, oleo-chemical, pharmaceutical, food and beverage, biotechnology and medical industries. Today, KGB has regional presence in Malaysia, Singapore, China, Taiwan, Indonesia and the Philippines.


Trading Catalyst

After securing contracts totalling to RM105m in Jan-Feb 2020, the total outstanding orderboook stood at RM363m. Meanwhile, its tenderbook as at Feb 29 stood at RM860m (KGB’s past success rate is around 20-25%).

Hence, it should bode well for FY20’s revenue and earnings as management believes most of the projects will be delivered within 6-9 months even with the delay under MCO period.

Despite KGB sourcing its raw materials from Japan and South Korea, there are no signs of companies shutting down in that region at this moment. Furthermore KGB has enough inventories on hand for now.

Technical View
Resistance: RM0.85 / RM0.95 / RM1.00
Support: RM0.725 / RM0.71
Cut loss: RM0.70

Source: Bloomberg, HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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