KUALA LUMPUR: 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.
At 9.35am, KNM was 18 sen to RM2.87 with 12.5 million shares done.
KNM said that the contract for the EnergyPark Peterborough was with Peterborough Renewable Energy Limited, and the duration was for four years from the commencement date.
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.
At 9.35am, KNM was 18 sen to RM2.87 with 12.5 million shares done.
KNM said that the contract for the EnergyPark Peterborough was with Peterborough Renewable Energy Limited, and the duration was for four years from the commencement date.
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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