Kelington Group Berhad (KGB) delivered a higher net profit at RM107.2m (+85.3% YoY) in FY23 and seems geared towards Commencement of KGB’s 2nd LCO2 plant in 1QCY24.
Malacca Securities (MSSB), in its technical Focus note today (Mar 27), said as at 4QFY23, KGB’s order book stood at RM1.3bn outstanding, coupled with a healthy replenishment rate from all its divisions.
KGB delivered a higher net profit YoY
In FY23, KGB has achieved a net profit of RM102.7m from RM55.4m (+85.3% YoY) on the back of stronger YoY revenue due to higher contributions from the UHP, Process Engineering and Industrial Gases divisions.
Commencement of KGB’s 2nd LCO2 plant in 1QCY24 will more than double the production capacity to fulfil the growing export demand for LCO2 from Oceania countries.
As at 4QFY23, its order book stood at RM1.3bn outstanding, coupled with a healthy replenishment rate from all business segments to provide earnings visibility for FY24.
Technical Outlook
Share price has been consolidating around RM2.69 and last closed at RM2.73. As the technical readings are positive, MSSB expects follow-through buying interest to be seen in the near term, targeting RM2.90-2.95, with a LT target at RM3.00.
Support is set around RM2.62-2.65, with a cut loss set around RM2.60.
KGB designs, fabricates and installs ultra-high purity gas and chemicals delivery systems.
