KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) is maintaining its Hold call on KNM GROUP BHD [] at RM1.17 and target price of RM1.35.
It said on Tuesday, Oct 4 that KNM had secured a RM70 million contract from Octagon Consolidated Berhad to manufacture an advanced thermal gasification reactor (ATGR) for a waste-to-energy plant in Colombo, Sri Lanka.
KNM was also short-listed as one of the contractors for the engineering, procurement, CONSTRUCTION [] and commissioning (EPCC) contract for the plant.
'We estimate the group's outstanding order book remains in excess of RM5 billion. We maintain our forecast at this juncture as we remain concerned on KNM's slow margin recovery, which has severely eroded its profitability despite a relatively strong outstanding order book,' it said.
It said on Tuesday, Oct 4 that KNM had secured a RM70 million contract from Octagon Consolidated Berhad to manufacture an advanced thermal gasification reactor (ATGR) for a waste-to-energy plant in Colombo, Sri Lanka.
KNM was also short-listed as one of the contractors for the engineering, procurement, CONSTRUCTION [] and commissioning (EPCC) contract for the plant.
'We estimate the group's outstanding order book remains in excess of RM5 billion. We maintain our forecast at this juncture as we remain concerned on KNM's slow margin recovery, which has severely eroded its profitability despite a relatively strong outstanding order book,' it said.
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