♦ Below expectations. 6MFY10 net profit of RM54.5m was below
expectations, accounting for 32% and 31% of our and consensus full-year
estimates respectively. The weaker-than-expected earnings were due to
the continuing difficult operating conditions since late-FY09. We also note
that the Borsig tax incentive recognised in 2QFY10 was lower
(vs. 1QFY10’s RM40m).
KNM Group Berhad : Still Weak - 01/09/2010
Showing posts with label KNM Group. Show all posts
Showing posts with label KNM Group. Show all posts
Wednesday, September 1, 2010
Tuesday, August 3, 2010
Mandarin Version - KNM Group Berhad : Great Chance To Roll Into A Fresh Technical Rebound… - 03/08/2010
KNM recorded a huge bullish candle after months of sideways crawling.
KNM stabilised between a support of RM0.69 and a resistance of RM0.85 in Jul 2009
to Apr 2010, but plunged with a huge 4sen technical gap in mid-Apr 2010, to begin
a fresh downtrend. However, after touching a floor support near RM0.50, the stock
stabilised and crawled sideways ever since. Yesterday, it registered a huge bullish
candle, surpassing the RM0.50 support level before closing the day at RM0.53. The
candlestick pattern suggests a fresh buying momentum underway.
Mandarin Version - KNM Group Berhad : Great Chance To Roll Into A Fresh Technical Rebound… - 03/08/2010
KNM stabilised between a support of RM0.69 and a resistance of RM0.85 in Jul 2009
to Apr 2010, but plunged with a huge 4sen technical gap in mid-Apr 2010, to begin
a fresh downtrend. However, after touching a floor support near RM0.50, the stock
stabilised and crawled sideways ever since. Yesterday, it registered a huge bullish
candle, surpassing the RM0.50 support level before closing the day at RM0.53. The
candlestick pattern suggests a fresh buying momentum underway.
Mandarin Version - KNM Group Berhad : Great Chance To Roll Into A Fresh Technical Rebound… - 03/08/2010
KNM Group Berhad : Great Chance To Roll Into A Fresh Technical Rebound…03/08/2010
KNM recorded a huge bullish candle after months of sideways crawling.
KNM stabilised between a support of RM0.69 and a resistance of RM0.85 in Jul 2009
to Apr 2010, but plunged with a huge 4sen technical gap in mid-Apr 2010, to begin
a fresh downtrend. However, after touching a floor support near RM0.50, the stock
stabilised and crawled sideways ever since. Yesterday, it registered a huge bullish
candle, surpassing the RM0.50 support level before closing the day at RM0.53. The
candlestick pattern suggests a fresh buying momentum underway.
KNM Group Berhad : Great Chance To Roll Into A Fresh Technical Rebound…03/08/2010
KNM stabilised between a support of RM0.69 and a resistance of RM0.85 in Jul 2009
to Apr 2010, but plunged with a huge 4sen technical gap in mid-Apr 2010, to begin
a fresh downtrend. However, after touching a floor support near RM0.50, the stock
stabilised and crawled sideways ever since. Yesterday, it registered a huge bullish
candle, surpassing the RM0.50 support level before closing the day at RM0.53. The
candlestick pattern suggests a fresh buying momentum underway.
KNM Group Berhad : Great Chance To Roll Into A Fresh Technical Rebound…03/08/2010
RHB Equity 360° - 3 August 2010 (PLUS, Semicon, Notion Vtec, Unisem, Axiata, AMMB; Technical: MPHB, KNM)
Top Story : PLUS – Expecting strong 2QFY12/10 performance - Outperform
Results Preview
- We believe 2QFY12/10 results will likely to come in stronger (both yoy and qoq), thanks to the encouraging growth registered at PLUS's core expressways in 2QFY12/10 (+10.5% yoy and 5.8% qoq).
- Based on an actual traffic volume of 4,069.9m PCU-km registered at PLUS's core expressways in 2QFY12/10, we believe PLUS will likely to register a net profit of RM321.7m in 2QFY12/10.
- This means PLUS's 1HFY12/10 net profit is likely to come in at RM620.8m, which is 50.6-50.7% of our fullyear forecast and the full-year market consensus.
- DCF-derived fair value is RM4.33 (based on WACC of 7.7%).
RHB Equity 360° - 3 August 2010 (PLUS, Semicon, Notion Vtec, Unisem, Axiata, AMMB; Technical: MPHB, KNM)
Results Preview
- We believe 2QFY12/10 results will likely to come in stronger (both yoy and qoq), thanks to the encouraging growth registered at PLUS's core expressways in 2QFY12/10 (+10.5% yoy and 5.8% qoq).
- Based on an actual traffic volume of 4,069.9m PCU-km registered at PLUS's core expressways in 2QFY12/10, we believe PLUS will likely to register a net profit of RM321.7m in 2QFY12/10.
- This means PLUS's 1HFY12/10 net profit is likely to come in at RM620.8m, which is 50.6-50.7% of our fullyear forecast and the full-year market consensus.
- DCF-derived fair value is RM4.33 (based on WACC of 7.7%).
RHB Equity 360° - 3 August 2010 (PLUS, Semicon, Notion Vtec, Unisem, Axiata, AMMB; Technical: MPHB, KNM)
Friday, July 9, 2010
KNM Group Berhad : Good, But Not Enough - 9/7/2010
♦ New contracts. KNM announced that its subsidiaries in Malaysia, Australia and Europe had won new contracts worth RM288.8m to fabricate process equipment for customers in Venezuela, Russia, Brazil, Australia and US, and to supply labour, tools and consumables for MMHE’s project in Turkmenistan. 40% of the contract value is from Borsig’s contract to supply primary syngas coolers for the Kemper County Integrated Gassification Combined Cycle Project in the US. Acording to the company,
these contracts will contribute positively to FY12/10-12, i.e. spread over the next 2½ years.
KNM Group Berhad : Good, But Not Enough - 9/7/2010
these contracts will contribute positively to FY12/10-12, i.e. spread over the next 2½ years.
KNM Group Berhad : Good, But Not Enough - 9/7/2010
RHB Equity 360° - 9 July 2010 (Allianz, Banks, KNM, LPI; Technical: Magna Prima)
Company Update
- The rights to purchase Allianz ICPS will start trading on 9 Jul and will cease trading at 5pm 16 Jul. We estimate the rights will trade at an estimated price of 61 sen.
- Based on our estimates of 35% and the assumption that the ICPS are worth the same as the ordinary shares, together with the 1.2x dividend payout for the ICPS, we believe the ICPS should trade at a premium of 20% from the ordinary share, or at RM4.55 after neutralizing the yield impact. This implies that the rights could trade up to RM1.37.
- We are maintaining our earnings forecast while adjusting our fair value after taking into account: 1) the fully diluted EPS after adjusting for ICPS; 2) the rollover of our base valuation year to FY11. Our new fair value for Allianz is RM5.32
RHB Equity 360° - 9 July 2010 (Allianz, Banks, KNM, LPI; Technical: Magna Prima)
- The rights to purchase Allianz ICPS will start trading on 9 Jul and will cease trading at 5pm 16 Jul. We estimate the rights will trade at an estimated price of 61 sen.
- Based on our estimates of 35% and the assumption that the ICPS are worth the same as the ordinary shares, together with the 1.2x dividend payout for the ICPS, we believe the ICPS should trade at a premium of 20% from the ordinary share, or at RM4.55 after neutralizing the yield impact. This implies that the rights could trade up to RM1.37.
- We are maintaining our earnings forecast while adjusting our fair value after taking into account: 1) the fully diluted EPS after adjusting for ICPS; 2) the rollover of our base valuation year to FY11. Our new fair value for Allianz is RM5.32
RHB Equity 360° - 9 July 2010 (Allianz, Banks, KNM, LPI; Technical: Magna Prima)
Wednesday, May 26, 2010
KNM Group Berhad : Not Out Of The Woods Yet - 24/05/2010
Below expectations. Stripping out the tax incentive arising from the purchase of Borsig of around RM40m, 1QFY12/10 core net profit of RM0.3m came in below expectations. The variance was largely due to: 1) lower-than-expected demand from China, Europe and Middle East; and 2) lower utilisation rates. Note that 1QFY12/10 average utilisation rate declined to 45% (vs. 55% in 4QFY12/09 and 70% in 1QFY12/09). Nevertheless, the company reported 1QFY12/10 operating profit of RM11.3m (vs. operating loss of RM61.9m in 4QFY12/09) mainly due to lower operating expenses stemming from tight cost-control measures.
KNM Group Berhad : Not Out Of The Woods Yet- 24/05/2010
KNM Group Berhad : Not Out Of The Woods Yet- 24/05/2010
RHB Equity 360° (Market, Consumer, Steel, Kencana, Sunway, MPI, HSL, KFC, Kinsteel, Perwaja, KNM; Technical: Genting Malaysia)-26/05/2010
Top Story : Shifting Trends – Seeking shelter in domestic plays
Market Update
♦ The FBM KLCI has erased all its gains and more during the first five months of 2010 since turning downwards on 13 May. We expect the market to remain volatile, with the risk on the downside.
♦ We have used historical valuations and market data in order to find possible fundamental support levels for the FBM KLCI:
1) Average one-year forward PER for FBM KLCI stocks since 2000 is estimated to be around 15x, and one standard deviation (SD) below the mean is estimated to be around 13.3x, which is coincidentally the same valuation at the next technical support of 1,154 for the FBM KLCI; and
2) Annual returns for the FBM KLCI over the last 32 years have averaged around 13% and 1SD below the mean would imply a pullback of around -17.6%. However, we note that a 1SD fall has only occurred seven times over the last 32 years. As it stands, the FBM KLCI has already fallen by 7.2% from the peak this year.
♦ Having painted a near-term bearish picture for the market, we highlight that the correction is driven more by external factors relating to fears over global macroeconomic conditions especially in the EU. We acknowledge that these concerns could result in some of our earnings forecasts coming under pressure.
Therefore, in our view, companies that have little or hedged exposure to overseas markets or imported costs are likely to be more resilient. These domestic plays include Maxis, TNB, PLUS, Allianz, AEON, KFC, KPJ and B-Toto.
RHB Equity 360°(Market, Consumer, Steel, Kencana, Sunway, MPI, HSL, KFC, Kinsteel, Perwaja, KNM;Technical: ...
Market Update
♦ The FBM KLCI has erased all its gains and more during the first five months of 2010 since turning downwards on 13 May. We expect the market to remain volatile, with the risk on the downside.
♦ We have used historical valuations and market data in order to find possible fundamental support levels for the FBM KLCI:
1) Average one-year forward PER for FBM KLCI stocks since 2000 is estimated to be around 15x, and one standard deviation (SD) below the mean is estimated to be around 13.3x, which is coincidentally the same valuation at the next technical support of 1,154 for the FBM KLCI; and
2) Annual returns for the FBM KLCI over the last 32 years have averaged around 13% and 1SD below the mean would imply a pullback of around -17.6%. However, we note that a 1SD fall has only occurred seven times over the last 32 years. As it stands, the FBM KLCI has already fallen by 7.2% from the peak this year.
♦ Having painted a near-term bearish picture for the market, we highlight that the correction is driven more by external factors relating to fears over global macroeconomic conditions especially in the EU. We acknowledge that these concerns could result in some of our earnings forecasts coming under pressure.
Therefore, in our view, companies that have little or hedged exposure to overseas markets or imported costs are likely to be more resilient. These domestic plays include Maxis, TNB, PLUS, Allianz, AEON, KFC, KPJ and B-Toto.
RHB Equity 360°(Market, Consumer, Steel, Kencana, Sunway, MPI, HSL, KFC, Kinsteel, Perwaja, KNM;Technical: ...
Wednesday, April 28, 2010
RHB Equity 360° (Media Prima; Technical: KNM) - 28/04/2010
Top Story : Media Prima – Strong start for TV and print adex Outperform
Company Update
♦ According to Nielsen Media Research (NMR), 1Q10 adex for Media Prima’s TV channels jumped 34.6% yoy while the print media saw gross adex grow by 7.5% yoy. For the TV segment, 1Q adex growth was led by TV9 (+62% yoy) while for the print media, the growth mainly came from Harian Metro (18% yoy). Generally the stronger TV adex growth is consistent with past trends, where we note that TV adex has historically had a higher leverage to GDP growth, vis-à-vis print adex.
♦ For FY09, average discounts for the TV segment was 68.8% (FY08: 61.6%) as the weaker economic conditions then meant that higher discounts were required to secure commitments from advertisers. For FY10, management expects discounts for the TV segment to average around the 65%-level as economic conditions improve. The bulk of the increase in discount should flow down to Media Prima’s bottomline.
♦ NSTP’s print adex market share grew to 31.5% in 1Q10 from 29.2% in 1Q09. This was largely due to the growth in adex from the malay dailies, partly offset by NST’s market share loss. Management, however, remains positive on the adex outlook for NST given improving economic conditions and major sporting events in FY10.
♦ We have revised up our FY10 and FY11 ad revenue growth projections for the TV segment to +8% and +5% respectively and for print segment, to +4.9% and 4.6% respectively. Overall, our FY10-11 net profit forecasts have been raised by 9.9%-13.5%.
♦ Our indicative fair value has been revised upwards to RM2.55 (fully diluted) from RM2.23 based on unchanged target FY10 PER of 15x. We reiterate our Outperform call on the stock.
RHB Equity 360° (Media Prima; Technical: KNM)-28/04/2010
Company Update
♦ According to Nielsen Media Research (NMR), 1Q10 adex for Media Prima’s TV channels jumped 34.6% yoy while the print media saw gross adex grow by 7.5% yoy. For the TV segment, 1Q adex growth was led by TV9 (+62% yoy) while for the print media, the growth mainly came from Harian Metro (18% yoy). Generally the stronger TV adex growth is consistent with past trends, where we note that TV adex has historically had a higher leverage to GDP growth, vis-à-vis print adex.
♦ For FY09, average discounts for the TV segment was 68.8% (FY08: 61.6%) as the weaker economic conditions then meant that higher discounts were required to secure commitments from advertisers. For FY10, management expects discounts for the TV segment to average around the 65%-level as economic conditions improve. The bulk of the increase in discount should flow down to Media Prima’s bottomline.
♦ NSTP’s print adex market share grew to 31.5% in 1Q10 from 29.2% in 1Q09. This was largely due to the growth in adex from the malay dailies, partly offset by NST’s market share loss. Management, however, remains positive on the adex outlook for NST given improving economic conditions and major sporting events in FY10.
♦ We have revised up our FY10 and FY11 ad revenue growth projections for the TV segment to +8% and +5% respectively and for print segment, to +4.9% and 4.6% respectively. Overall, our FY10-11 net profit forecasts have been raised by 9.9%-13.5%.
♦ Our indicative fair value has been revised upwards to RM2.55 (fully diluted) from RM2.23 based on unchanged target FY10 PER of 15x. We reiterate our Outperform call on the stock.
RHB Equity 360° (Media Prima; Technical: KNM)-28/04/2010
Thursday, April 15, 2010
KNM Group Berhad : Takeover Offer Lapsed-15/04/2010
BlueFire Capital Group’s acquisition of KNM has lapsed. The company announced that the proposed acquisition by BlueFire Capital Group (Bidco) has lapsed given that both parties were unable to reach an agreement on the offer price. Recall on 4 Feb 2010, Bidco proposed a general offer to acquire the remaining stake of 76.3% for RM2.7bn cash.
KNM Group Berhad : Takeover Offer Lapsed-15/04/2010
KNM Group Berhad : Takeover Offer Lapsed-15/04/2010
Corporate Highlights...-15/04/2010
♦ Mah Sing
Company Update : 1QFY12/10 Sales More Than Tripled
♦ IJM Corporation
News Update : Secures Two Work Packages Of Murum Access Road Worth RM247m
♦ KNM Group
News Update : Takeover Offer Lapsed
♦ Market Technical Reading
Daily Trading Strategy : More Consolidation If Sentiment Fails To Improve Today...
Corporate Highlights...-15/04/2010
Company Update : 1QFY12/10 Sales More Than Tripled
♦ IJM Corporation
News Update : Secures Two Work Packages Of Murum Access Road Worth RM247m
♦ KNM Group
News Update : Takeover Offer Lapsed
♦ Market Technical Reading
Daily Trading Strategy : More Consolidation If Sentiment Fails To Improve Today...
Corporate Highlights...-15/04/2010
RHB Equity 360° (Mah Sing, IJM, KNM; Technical: Top Glove) - 15/04/2010
Top Story : Mah Sing – 1QFY12/10 sales more than tripled Outperform
Visit Note
♦ Mah Sing recorded strong sales of RM516m in 1Q10, from RM170.2m a year ago, thanks to good responses to its new projects. With sales expected to sustain in the coming quarters underpinned by new launches, FY12/10 sales target of RM1bn now appears within reach. Among the new projects we are particularly excited over Southbay City, Garden Residence & Garden Plaza and Icon Residence @ Mont Kiara due to excellent locations and products.
♦ While not generally perceived by the market as one of the front runners for federal land parcels earmarked for development, we feel that investors should not write off Mah Sing entirely as: a) it boasts a decent list of government-linked shareholders; b) it has strong balance sheet with net cash of RM176.5m or 27.9 sen as at 31 Dec 09; and 3) it has good track record in delivering various types of properties.
♦ No change to our net profit forecasts. However, we have adjusted our FY10-12 EPS forecasts for the 1-for- 5 bonus issue that was completed in Apr, resulting in our estimates being lowered by 16.7% p.a..
♦ We have thus also lowered our RNAV based FV from RM2.45 to RM2.04. Maintain Outperform.
RHB Equity 360°(Mah Sing, IJM, KNM; Technical: Top Glove)-15/04/2010
Visit Note
♦ Mah Sing recorded strong sales of RM516m in 1Q10, from RM170.2m a year ago, thanks to good responses to its new projects. With sales expected to sustain in the coming quarters underpinned by new launches, FY12/10 sales target of RM1bn now appears within reach. Among the new projects we are particularly excited over Southbay City, Garden Residence & Garden Plaza and Icon Residence @ Mont Kiara due to excellent locations and products.
♦ While not generally perceived by the market as one of the front runners for federal land parcels earmarked for development, we feel that investors should not write off Mah Sing entirely as: a) it boasts a decent list of government-linked shareholders; b) it has strong balance sheet with net cash of RM176.5m or 27.9 sen as at 31 Dec 09; and 3) it has good track record in delivering various types of properties.
♦ No change to our net profit forecasts. However, we have adjusted our FY10-12 EPS forecasts for the 1-for- 5 bonus issue that was completed in Apr, resulting in our estimates being lowered by 16.7% p.a..
♦ We have thus also lowered our RNAV based FV from RM2.45 to RM2.04. Maintain Outperform.
RHB Equity 360°(Mah Sing, IJM, KNM; Technical: Top Glove)-15/04/2010
Thursday, April 8, 2010
Corporate Highlights - 08/04/2010
♦ Gaming
Sector Update : New Opportunities From Further Liberalisation Of Policies?
♦ KNM Group
News Update : Benefiting From Borsig Tax Incentive
♦ Digi.Com
News Update : CEO Resigns
♦ Market Technical Reading
Daily Trading Strategy : A Possible Healthy Retracement Ahead...
♦ DRB-Hicom
Short-term Trading Idea : Possible Rebound From RM1.20 Soon…
Corporate Highlights - 08/04/2010
Sector Update : New Opportunities From Further Liberalisation Of Policies?
♦ KNM Group
News Update : Benefiting From Borsig Tax Incentive
♦ Digi.Com
News Update : CEO Resigns
♦ Market Technical Reading
Daily Trading Strategy : A Possible Healthy Retracement Ahead...
♦ DRB-Hicom
Short-term Trading Idea : Possible Rebound From RM1.20 Soon…
Corporate Highlights - 08/04/2010
KNM Group Berhad : Benefiting From Borsig Tax Incentive
Tax incentive of RM1.4bn. KNM announced yesterday that the Ministry of Finance had approved a total tax incentive of RM1.4bn arising from the acquisition of Borsig in 2008. Recall that KNM acquired Borsig for €350m back in 2008. The tax incentive will be spread over four years, which implies that RM350m can be used to offset KNM’s domestic-based earnings per annum beginning 2010. We understand that if KNM’s FY10
domestic-based earnings were to be lower than RM350m, the excess tax credit can be carried forward into FY11-13.
KNM Group Berhad : Benefiting From Borsig Tax Incentive - 08/04/2010
domestic-based earnings were to be lower than RM350m, the excess tax credit can be carried forward into FY11-13.
KNM Group Berhad : Benefiting From Borsig Tax Incentive - 08/04/2010
RHB Equity 360° (Gaming, Digi, KNM; Technical: Jaks Resources) - 08/04/2010
Top Story : Gaming – New opportunities from further liberalisation of policies? Overweight
Sector Update
♦ The NFO segment has undergone several new developments of late in the form of the allocation of 20 overlapping special draws for 2010, the approval of a new jackpot 4D game for Magnum and the approval of two higher minimum jackpot lotto replacement games for BToto. There is also potential for more industry changes in the form of the potential emergence of a new jackpot game for Tanjong and the possible approval of a sports betting licence, all of which has intensified industry hopes that the government is becoming more liberal in its gaming policies.
♦ We believe a sports betting licence may not necessarily be a good thing, depending on how it is implemented. This is due to four main issues. Firstly, the issue of the traditionally high prize payout ratios involved; secondly, the issue of gaming taxes to be borne; thirdly, the issue of agent commissions to be paid; and fourthly, the issue of implementation, as sports betting is far more complicated than normal 4D or
lotto betting.
♦ On the whole, we are positive on any potential liberalisation of the NFO industry, given that this would help enlarge the NFO revenue pie by taking market share from the illegals. If these liberalisation measures are taken, the next application to the government from NFOs would probably be in the form of outlet expansion,
given that the government’s stance on this has not changed for many years already. However, we would not hold out too much hope on that happening in the near future, given the political scenario in Malaysia. Currently, we project the NFO industry segment growth at 3.1% for 2010 and 1.6-1.7% for 2011-2012 (from 2.1% in CY2009).
♦ We have tweaked our forecasts for BToto slightly, after fine-tuning some parameters, resulting in a revision of -2% for FY04/10, +0.7% for FY04/11 and +1.8% for FY04/12. Maintain Overweight on sector. No change to the recommendations of Outperform for BToto (FV = RM4.95), Genting (FV = RM8.95) and Genting Singapore (FV = S$1.35); and Market Perform for Genting Malaysia (FV = RM2.90). Note that we have raised our fair value for Genting to RM8.95 (from RM8.90) to impute the recently updated target price for Genting Plantations of RM6.65 (from RM5.85).
RHB Equity 360°(Gaming, Digi, KNM; Technical: Jaks Resources)-08/04/2010
Sector Update
♦ The NFO segment has undergone several new developments of late in the form of the allocation of 20 overlapping special draws for 2010, the approval of a new jackpot 4D game for Magnum and the approval of two higher minimum jackpot lotto replacement games for BToto. There is also potential for more industry changes in the form of the potential emergence of a new jackpot game for Tanjong and the possible approval of a sports betting licence, all of which has intensified industry hopes that the government is becoming more liberal in its gaming policies.
♦ We believe a sports betting licence may not necessarily be a good thing, depending on how it is implemented. This is due to four main issues. Firstly, the issue of the traditionally high prize payout ratios involved; secondly, the issue of gaming taxes to be borne; thirdly, the issue of agent commissions to be paid; and fourthly, the issue of implementation, as sports betting is far more complicated than normal 4D or
lotto betting.
♦ On the whole, we are positive on any potential liberalisation of the NFO industry, given that this would help enlarge the NFO revenue pie by taking market share from the illegals. If these liberalisation measures are taken, the next application to the government from NFOs would probably be in the form of outlet expansion,
given that the government’s stance on this has not changed for many years already. However, we would not hold out too much hope on that happening in the near future, given the political scenario in Malaysia. Currently, we project the NFO industry segment growth at 3.1% for 2010 and 1.6-1.7% for 2011-2012 (from 2.1% in CY2009).
♦ We have tweaked our forecasts for BToto slightly, after fine-tuning some parameters, resulting in a revision of -2% for FY04/10, +0.7% for FY04/11 and +1.8% for FY04/12. Maintain Overweight on sector. No change to the recommendations of Outperform for BToto (FV = RM4.95), Genting (FV = RM8.95) and Genting Singapore (FV = S$1.35); and Market Perform for Genting Malaysia (FV = RM2.90). Note that we have raised our fair value for Genting to RM8.95 (from RM8.90) to impute the recently updated target price for Genting Plantations of RM6.65 (from RM5.85).
RHB Equity 360°(Gaming, Digi, KNM; Technical: Jaks Resources)-08/04/2010
Tuesday, March 2, 2010
KNM Group Berhad : 4Q Dragged Down By Weak Demand From China & Middle East - 01/03/2010
Below expectations. FY12/09 came in below expectations, and accounted for 63% and 61% of our and market full-year estimates respectively. The variance was largely due to:
1) lower-than-expected demand from China, Europe and Middle East; and
2) higher operating costs. 4Q net loss of RM31m (vs. 3Q net profit of 31.9m) was mainly due to slowing demand for process equipment from China and Middle East as well as still-weak demand for Borsig’s higher-end process equipment plus higher operating costs. Note that 4QFY12/09 average utilisation rates declined to 55% (vs. 65% in 3QFY12/09 and 85% in 4QFY12/08).
KNM Group Berhad : 4Q Dragged Down By Weak Demand From China & Middle East
1) lower-than-expected demand from China, Europe and Middle East; and
2) higher operating costs. 4Q net loss of RM31m (vs. 3Q net profit of 31.9m) was mainly due to slowing demand for process equipment from China and Middle East as well as still-weak demand for Borsig’s higher-end process equipment plus higher operating costs. Note that 4QFY12/09 average utilisation rates declined to 55% (vs. 65% in 3QFY12/09 and 85% in 4QFY12/08).
KNM Group Berhad : 4Q Dragged Down By Weak Demand From China & Middle East