Thursday, 25 September 2014

Stock to Watch - KGB & KGB-WA

Kelington Group BHD (KGB 0151)

One of the leading Ultra-High Purity (UHP) Gas and Chemical delivery solution provider within the regional footprint of Malaysia, China, Taiwan and Singapore
Business Segment
1. Design and Modelling
2. Fabrication and Installation
3. Quality testing and certification
4. Control and instrumentation
5. Maintenance and servicing
Current outstanding order-book of RM175 Million
-The Ultra High Purity mechanical and electrical services and medical system for Kang Hui Maternity Centre Services (Shanghai) Co (remaining value of RM99m)
-The total facilities management services to one of the world’s largest chip manufacturers (remaining value of RM18m)
-The UHP system design for TTE Engineering (remaining value of RM8m)
- Remaining RM50m is contributed by other semiconductors, O&G, plantation and healthcare players
Current tender-book
- Taiwan’s biodiesel contract (worth RM35m) has been delayed due to the longer-than-expected approval process, management remains optimistic in securing it by 2H2014
-Inclusive of other tender jobs for one of Malaysia’s hospitals SGD30m the tender book value has already hit RM110m.
Kelington Group BHD is one of the turn-around company which earning slipped in 2013 due to the lack of outstanding order-book. However group return to be profitability after securing an amount of project, 2.7 times as more order as to compare to FY2013. Take 6% as the average benchmark Profit-Margin, the group will be easily standing on at a comfortable profit of RM10.5 Million divided by the weighted average number of share of 191 Million, staggering around 5.4cents earning per-share. Assume it is trading at 10 times fair PE ~ it will be easily valued at Rm0.54 cents
Target Price RM0.54

Technical Analysis
KGB has challenged the previous high when I posted on 13 July 2014. However, the unstable market sentiment brought the price to retest support. The support is firm and price has rebounded from the support.
Judging from the strong trading volume and positive momentum indicators, I believe it will trigger another round of buying interest and it possible will bring the price to uncharted territory.

Target Price 1 = RM0.48 (+9.1%)
Target Price 2 = RM0.52 (+18.2%)
Cut Loss = RM0.41 (-6.8%)

Target Price 1 = RM0.25 (+18.8%)
Target Price 2 = RM0.30 (+42.9%)
Cut Loss = RM0.20 (-4.7%)
LoveStockry Club = Love the Story of the Stock

This articles do not represent an investment advisory service as no subscription or management fees are charged. The contents of the article are provided as general information only and should not be taken as investment advice or as a recommendation to buy or sell any security or financial instrument. Any investment decisions carried out based on information, analysis, or commentary provided here is solely your responsibility. You should consult your investment advisor before making any investment decisions.

Tuesday, 9 September 2014

Stock to Watch - PRESTAR

PRESTAR (9873)

PRESTAR found its support at 0.585 and show sign of rebound from there. The reason of rebound was interesting as in the annoucement made on 8 September. Directors have been acquiring on RM0.586 and RM0.59 as shown in the photo attached. From technical wise, the indicators show positive sign and possible reversal signal.
Traders should watch 0.68 as first profit taking level and the next level to watch is 0.71. Watch 0.585 as stop loss level.

First target price = RM0.68 (+10.7%)
Second target price = RM0.71 (+16.3%)
Stop loss = RM0.585 (-4%)