Observer expects to bag a total of rm2.2 billion contracts as the firm is one of the main beneficiaries for the RAPID project.
With assumptions of 12% market share, expect the firm to bag rm54 million per annum based on contract duration of four years.
Market observers expect KNM’s net profit to grow at a stronger pace with compounded annual growth rate of 74% from FY2013 to FY2016.
Its balance sheet was expected to improve further with KNM’s net gearing falling to 0.16 times in FY2016 from 0.33 time in FY2013.
On the construction of the EnergyPark Peterborough that KNM expects will commence in the fourth quarter 2014. It is a game changer for KNM as its earnings contribution is expected to flow in FY2017.
Expect Phase 1 to generate around rm40 million to the company’s bottom line. Phase 1 may add potential relisting of Borsig in the next few years from 2014 might give better value to KNM.
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