Reneuco (former KPower)

[winston]

not vested

Trading Buy: KPOWER-7130

Look forward to a successful transformation and exciting growth ahead
(Last price: RM1.88, Potential upside +33.0%)

Company Profile
From a manufacturer of warp-knitted fabrics and property developer, KPOWER has repositioned itself to venture into energy, utilities, infrastructure, and logistics businesses.

Trading Catalyst

Spearheaded by the founder of SERBADK, Mohd Abdul Karim Abdullah (who bought a 53% stake in June 2019), the Company is repositioning itself across diverse areas in energy, utilities and construction industries to generate sustainable concession based revenue streams, leveraging on the management’s vast experience and industry network.

KPOWER’s risk-reward profile is attractive after skidding 40% from a 52-week high of RM3.11 to RM1.88 last Friday or 6.3x FY21E (30% discount vs peers), supported by RM1bn order book (mainly encompassing infrastructure, energy and facilities projects) and RM2.5bn tender book (Middle East: RM1.2bn; Malaysia: RM908m; Indonesia RM276m and Loas RM180m).

Technically, the stock is poised for a bullish triangle breakout formation to spur prices further towards RM2.16-2.50 territory.


Technical View
Resistance: RM2.00 / RM2.16 / RM2.50
Support: RM1.80 / RM1.72
Cut loss: RM1.68

Key Financial Stats
Undemanding 6.3x FY21 P/E, supported by RM1bn orderbook and RM2.5bn tenderbook, and RM4.3 m netcash or 5sen/share.

Source: Bloomberg, HLIB

[winston]

vested

KPower energises global energy, solar market

KUALA LUMPUR: Kumpulan Powernet Bhd (KPower) has managed to expand its reach in the domestic and global markets within a short period of time, especially in the renewable energy field.

According to the group's managing director and deputy chairman Mustakim Mat Nun, the company has managed to land several projects in the international energy and solar power industry.

"So far, we have managed to win more than 50 per cent of the contracts we bid for via open tenders, valued at more than RM2 billion, out of the total tenders bid worth more than RM4 billion.

"The tenders we won are from the domestic and international markets like Nepal, Indonesia and Laos, and the number of tenders we bid for also includes bids in the Middle East -- part of our market penetration strategy into the region,” said Mustakim.

In just a few years, KPower has managed to diversify its income stream through four main business segments -- energy and utilities, real estate development, logistics and the health and technology industry.

KPower had also embarked on its sole asset ownership model when it was shortlisted for the fourth Large Scale Solar (LSS4) project for the development of a 50 megawatt (MW) solar photovoltaic (PV) plant in Pahang, Malaysia.

The RM475 million engineering, procurement, construction and operations (EPCC) project is the company’s first hydropower project in Pahang.

It has also won projects worth RM2.37 billion throughout Malaysia, Laos, Indonesia and Nepal since June 2019, thus strengthening its financial performance through its newest business segment.

KPower’s revenue rocketed by 334 per cent year-on-year (y-o-y) in the third quarter of financial year 2021 (FY21), with profits increasing by 432 per cent y-o-y.

Its performance was driven by construction-related activities, the commencement of works in Indonesia, as well as the contribution from order-based projects in Malaysia and abroad.

Year-to-date, it has managed to secure projects worth RM1.15 billion out of its RM2.0 billion order book target for FY21.

As of May 20, its outstanding orderbook stood at RM1.9 billion.

Source: Bernama

[winston]

vested

May 26, 2021

KPower says it is run independently from Serba Dinamik as the latter's auditors flag statutory audit matters

by Tan Choe Choe

KUALA LUMPUR (May 26): KPower Bhd says today that the group and Serba Dinamik Holdings Bhd are two distinct and separate entities that are run independently of each other, save for having the same major shareholder and director in Datuk Dr Mohd Karim Abdullah.

"With the exception of sharing the same company secretary, KPower also engages a different set of professional advisors such as external auditors, transaction lawyers, and public relations and investor relations firms for the group’s business and other corporate matters," KPower said.

KPower, meanwhile, said it is headed by group managing director Mustakim Mat Nun, and is supported by a team of professional managers that do not hold any position in Serba Dinamik and vice versa.

"To date, KPower has had no recurrent related party transactions (RRPTs) with Serba Dinamik. Any and all RRPTs have only been between the Group and OHP Group Sdn Bhd, a private vehicle owned by the group’s managing director, and the group’s chief financial officer Amirul Afif Abd Aziz.

"All projects sourced by KPower is without any involvement from Serba Dinamik," it added.

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... it-matters

[winston]

vested

KPower - Proposes private placement of up to 11% new shares
Date: 25/05/2021

Investment Highlights

We maintain our BUY call, forecasts and fair value of RM2.47/share based on 18x revised FY23F EPS.

We value KPower at a discount to the average forward 20x PE of leading renewable energy players globally to reflect:
(1) KPower being a relatively new player in this space; and
(2) its relatively small market value.

KPower has proposed a private placement of new shares of approximately 10.8% of its outstanding shares or 48.8mil shares at an indicative issue price of RM2.05/share. The RM100mil proceeds from this exercise are mainly earmarked for working capital (i.e. 50MW LSS4 power plant, mini hydropower plants and other upcoming projects).

Source: AmInvest

[winston]

vested

April 01, 2020

KPower continues rally after bagging mini hydropower plants job

by Justin Lim

KPower told Bursa Malaysia that it has accepted the letter of award from Kangsar Hidro to construct five mini hydropower plants in Perak, with a total capacity of 32.47 megawatts. The contract is worth RM354 million.

Kangsar Hidro is 15%-owned by Perak state-owned Yayasan Perak and 85% owned by Kangsar Capital Sdn Bhd, a subsidiary of OHP Ventures Sdn Bhd.

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... plants-job

[winston]

vested

15 March 2021

KPower (KPB MK)
LSS4 Is In! Reiterate BUY
Buy (Maintained)
Market Cap: USD244m

Reiterate BUY, MYR3.12 TP, 41% upside and c.1% FY21 (Jun) yield.

We are positive on KPower’s 50MW large-scale solar power plant (LSS4) win, which could generate MYR4-5m in recurring net profit pa for the next 21 years, from Sep 2023.

It will execute a portion of EPC works in-house, and other works will be sub-contracted out.

We believe KPower could raise funds to finance its estimated equity outlay of MYR32m for this project.

Source: RHB

https://static1.squarespace.com/static/ ... 021%29.pdf

[winston]

vested

March 15, 2021

We maintain our HOLD call, forecasts and fair value (FV) of RM2.31 based on 18x FY23F EPS.

This is at a discount to the average forward 20x PE of leading renewable energy players globally to reflect:
(1) KPower being a relatively new player in this space; and
(2) its relatively small market value.

Source: AmInvest

https://static1.squarespace.com/static/ ... 021%29.pdf

[winston]

vested

May 21, 2021

Analysts upbeat on KPower’s prospects, predict possible cash call for LSS

by Lam Jian Wyn

AmInvestment Research analyst Jeremie Yap raised his fair value (FV) for the stock to RM2.47 from RM2.31 prior, based on 18 times revised earnings per share (EPS) of 13.7 sen forecast for the financial year ending June 30, 2023 (FY23).

“We value KPower at a discount to the average forward 20 times price-earnings ratio (PER) of leading renewable energy players globally to reflect:
i) KPower being a relatively new player in this space; and
ii) its relatively small market value. No ESG (environmental, social and governance)-related adjustments to our FV based on a three-star rating as appraised by us”

“We continue to like KPower for:
i) the bright prospects for renewable energy, underpinned by global trends towards clean and sustainable energy and carbon neutrality to combat climate change; and
ii) its strong earnings visibility and growth potential underpinned by its RM2.2 billion order backlog on green utility projects, coupled with a massive tender book of RM3.4 billion,” he said.

KPower reported a net profit of RM14.15 million for 3QFY21, almost triple from RM2.67 million a year ago.

Meanwhile, revenue surged year-on-year (y-o-y) to RM137.66 million from RM31.68 million.

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... h-call-lss

[winston]

vested

4Q Results

Revenue: +160%
EPS: 0%
NAV: 0.31

https://www.bursamalaysia.com/market_in ... id=3194884

[winston]

vested

1Q Results

Revenue: -23% yoy
EPS: -61%
NAV: 0.32

https://www.bursamalaysia.com/market_in ... id=3213954