KUALA LUMPUR: OSK Research is maintaining a Trading Buy on KNM GROUP BHD [] and its target price remains unchanged at RM2.22 based on a PER of 9x FY11 EPS.
The research house said on Wednesday, Dec 8 that the worries over its liquidity have been successfully addressed and going forward, it expected KNM's outlook to gradually improve in line with the recovery of the global O&G and petrochemical industries.
OSK Research said KNM had, on Monday, finally held an analyst briefing after pausing for a few quarters as management believes the company's operation is finally turning around and the outlook for its process equipment segment is getting brighter.
'Going forward, it will expand its services business and go into nuclear energy. KNM is still supported by strong orderbook of over RM2 billion.
'The four growth directions for KNM include: i) more products with diversified manufacturing locations; ii) providing total solutions with process TECHNOLOGY []; iii) providing services, and iv)continuing to venture into new businesses,' it said.
The research house said on Wednesday, Dec 8 that the worries over its liquidity have been successfully addressed and going forward, it expected KNM's outlook to gradually improve in line with the recovery of the global O&G and petrochemical industries.
OSK Research said KNM had, on Monday, finally held an analyst briefing after pausing for a few quarters as management believes the company's operation is finally turning around and the outlook for its process equipment segment is getting brighter.
'Going forward, it will expand its services business and go into nuclear energy. KNM is still supported by strong orderbook of over RM2 billion.
'The four growth directions for KNM include: i) more products with diversified manufacturing locations; ii) providing total solutions with process TECHNOLOGY []; iii) providing services, and iv)continuing to venture into new businesses,' it said.
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