28-May-2008 : KNM New acquisitions on track for completion

Comment on result

KNM’s 1Q08 revenue and pretex profit grew 26.3% and 36.7% y-o-y, respectively led by higher capacity, increased orderbook and 1.8 ppt improvement in EBIT margin following efforts to focus on medium to high-end processing equipment that the average selling price increased to RM 15,000/MT for 1Q08, against RM 14,000/MT for 1Q07. Outlook for KNM remains promising given the oil and gas capex up-cycle. HWANG DBS maintain BUY with target price of RM 7.60 per share based on FY09 peers average PE of 15x.