Contract Flow Company - KGB's Profit All the Way
The trade war between China and the US began in 2018, and the whole world is fearful and doesn't know what the future world will look like. At the time, KGB was interviewed by Busy Weekly and shouted that it would be a beneficiary of the Sino-US trade war. Sure enough, PAT surged 51% in 2018.
The company moved its center to UHP, which has a higher margin, and its entry into the industrial gas industry in 2018 also blossomed this year. As demand for industrial gases increases, new industrial gas plants will start contributing profits in 23Q4. The industrial gas business is a high-margin industry, and it is expected that margins will also improve after Plant 2 starts running next year.
In the past two years, friction between China and the US has intensified, and foreign semiconductor companies have entered Singapore and Malaysia one after another. KGB's contracts have been weak in the past two years, and FY2023's turnover and profit will definitely be at record highs. Moreover, Texas Instruments and Infineon are increasing their investments in Malaysia this year, and these will all be potential future orders. KGB has a good operating record in Malaysia, and the chances of getting a contract are also high.
The company's highest stock price was RM1.88 in early 2022, and its current profit has doubled compared to that time. Assuming that profit continues to grow in the next 2 quarters, the company's valuation will be even cheaper. KENANGA adjusted the target price to RM2.15, what do you think?
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投资座右铭：价值为主，技术为辅，心态之上
在股市拥有超过10年的经验，主要是通过科技以及制造出口领域累积财富。
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Sandy Cheah : The growth of this company is really amazing!