[%hqpE%] KKB ENGINEERING BERHAD   
Research by Public Bank
NEUTRAL ; Target Price RM1.15 ; Upside -19.6% 

"In Line With Expectations"
 KKB Engineering Berhad (KKB) registered 2QFY19 net profit of RM5.5m (+101.1% YoY, +75.6% QoQ) which was in line with our and consensus full year net profit estimates. YTD, the Group’s net profit of RM8.7m (+181.0% YoY) constituted 49% and 48% of our and consensus full-year estimates respectively. In 2QFY19, the key revenue contributor again came from its civil construction and steel fabrication businesses within the engineering sector which contributed 96% of Group’s total revenue. All told, we maintain our Neutral call and target price (TP) is unchanged at RM1.15 pegged at c.0.9x to book value. 

Tan Siang Hing
T 603 2268 3016
F 603 2268 3014
E [%eiCD%] 

$KLSE-KKB KKB ENGINEERING BERHAD   
Research by Public Bank
NEUTRAL ; Target Price RM1.15 ; Upside -19.6% 

"In Line With Expectations"
 KKB Engineering Berhad (KKB) registered 2QFY19 net profit of RM5.5m (+101.1% YoY, +75.6% QoQ) which was in line with our and consensus full year net profit estimates. YTD, the Group’s net profit of RM8.7m (+181.0% YoY) constituted 49% and 48% of our and consensus full-year estimates respectively. In 2QFY19, the key revenue contributor again came from its civil construction and steel fabrication businesses within the engineering sector which contributed 96% of Group’s total revenue. All told, we maintain our Neutral call and target price (TP) is unchanged at RM1.15 pegged at c.0.9x to book value. 

Tan Siang Hing
T 603 2268 3016
F 603 2268 3014
E tan.sianghing@publicinvestbank.com.my 