Saham: KLSE-KGB - PT. Kelington Group Berhad

Titan Trading Notes For Thursday [14/11/2024]:

$KLCI had a slight rebound back towards the 1611 points region with an overall mixed market sentiment as we still saw over 560 counters closing red for the day today. Daily trading volume remains average around the 2.8 billion mark, which is just average.

Main stocks that showed strong buying momentum would be the likes of LWSABAH, TANCO, AZAMJAYA, MMAG, 99SMART, KGB, YEWLEE, VS, CEB, and KPJ. All of which were able to sustain their rallies throughout the day on the top volumes list despite the mixed market sentiment.

$99SMART / 5326 (99 SPEED MART RETAIL HOLDINGS BERHAD) ince retracing all the way back towards the RM 2.27+ main support levels, was able to breakout from its RM 2.35+ main downtrend resistance and rallied all the way towards the RM 2.40+ regions with good volume and buying momentum.

For now looking quite strong here and as long as able to hold above its RM 2.35+ immediate support on the hourly charts, could continue to trend back up towards the RM 2.50+ major resistance levels soon.

Will be monitoring 99SMART closely here as seems to be ripe for a further rally soon.

$KGB / 0151 (KELINGTON GROUP BERHAD) after announcing good QR results, was able to breakout from its RM 3.20+ main downtrend resistance with huge volume and rallied all the way towards the RM 3.48+ regions today despite the mixed market sentiment.

For now despite being overbought, is looking quite strong here and as long as able to hold above its RM 3.20 - RM 3.30+ immediate support, could continue to trend back up towards the RM 3.60++ regions soon.

Will be monitoring KGB closely here as looking very strong.

$NOTION / 0083 (NOTION VTEC BERHAD) since breaking out towards the RM 1.12 regions, had been retracing and consolidating around the RM 1+ main support levels over the past few trading days here and still able to hold strong here.

For now still looking quite strong and as long as able to sustain, could breakout from its RM 1.10 - RM 1.12 major resistance levels soon for a further breakout and start trending up towards the RM 1.30 - RM 1.40+ regions in the coming few weeks.

Will be monitoring NOTION closely. Have to wait for the QR results to come out first.

$KGB / 0151 (KELINGTON GROUP BERHAD)
Research by Kenanga
OUTPERFORM – TP RM4.16

" Positioned for Semiconductor Upsurge”

KGB's outlook remains promising, supported by a robust order book primarily consisting of high-margin UHP projects. Its LCO2 plants are operating at 58% capacity, with utilization expected to increase due to strong regional demand. We have adjusted our FY24-25 net profit forecasts upward by 4%/2% and raised our target price to RM4.16, maintaining our OUTPERFORM call.

Analyst:
Cheow Ming Liang
cheowml@kenanga.com.my

$KGB / 0151 (KELINGTON GROUP BERHAD)

$KGB / 0151 (KELINGTON GROUP BERHAD)
Research by RHB
BUY – TP RM3.90

" Ringing In Another Strong Quarter; Keep BUY”

We expect Kelington Group to deliver another quarter of strong earnings, buoyed by its respectable orderbook and the robust performance of the liquid carbon dioxide (LCO2) business, which is now fully consolidated following a recent transaction. Our TP is pegged to unchanged target P/E of 23x on FY25F EPS (-0.5SD from the KLTEC Index’s 5-year mean).

Analyst:
Jeffrey Tan
jeffrey.tan@rhbgroup.com
Cindy Lee
cindy.chin.hui@rhbgroup.com

$KGB / 0151 (KELINGTON GROUP BERHAD)

TECHNOLOGY
$INARI / 0166 (INARI AMERTRON BERHAD) $KGB / 0151 (KELINGTON GROUP BERHAD) $LGMS / 0249 (LGMS BERHAD)
Research by Kenanga
Overweight

“Dawn of a New Upcycle”

We maintain OVERWEIGHT on the technology sector. World Semiconductor Trade Statistics (WSTS) recently raised its projection for global semiconductor sales in CY24 to +16% (from +13.1%) driven by strong demand for memory and logic ICs. Following six consecutive months of YoY growth in semiconductor sales (Nov 2023 to Apr 2024), Malaysian players—which are mostly at the back end—are beginning to feel the positive impact. They guided for improving order visibility in coming quarters, which is consistent with our view of a recovery in 2HCY24. Our top picks are: (i) INARI (OP; TP: RM4.60) for its growing presence in China’s smartphone market and the AI space, (ii) KGB (OP; TP: RM4.10) for its strong earnings visibility backed by a RM1.3b order book, and (iii) LGMS (OP; TP: RM1.90) on higher demand for cybersecurity services from corporations locally on the heels of the enactment of Cybersecurity Bill 2024.

Analyst(s):
Samuel Tan
samueltan@kenanga.com.my