Kelington Group Berhad announced this week that it had clinched a massive US$105 million (approx. RM 413.7 million) contract to build a turnkey gas distribution system for a semiconductor wafer fabrication plant in Gujarat, India.
The contract, awarded by a leading Indian semiconductor manufacturer, marks KGB’s largest single win in the Indian market to date. The project involves the design and delivery of an ultra-high purity gas distribution system—a mission-critical component of “fab” infrastructure where even the slightest impurity can ruin production yields.
A Growing Footprint in the Indian Chip War
As India aggressively pursues its “India Semiconductor Mission,” KGB has positioned itself as a primary beneficiary. This latest award brings the group’s total confirmed wins for this specific Gujarat facility to USD 115.4 million (RM 455.0 million), following an earlier purchase order for gas purifiers.
Furthermore, the group has secured three Letters of Intent (LOI) worth an additional US$17 million (RM 67.1 million), which could further expand its scope of work once converted into firm contracts.
2026 Outlook: Aiming for a Record Year
Kenanga Research notes that KGB’s year-to-date (YTD) contract wins have already reached RM 555 million, providing a “healthy start” to the 2026 fiscal year. Management is currently targeting a record-breaking year with an order win target between RM 1.5 billion and RM 2 billion.
“KGB’s orderbook replenishment is not dependent on any single mega-project,” Kenanga highlighted. “The group has a healthy pipeline comprising multiple tenders worth RM 4.6 billion in aggregate.”
Kenanga has maintained its “OUTPERFORM” rating on KGB with an unchanged target price of RM 6.15. The research house favors the stock as a direct proxy to the global front-end wafer fab expansion, citing:
Earnings Visibility: Supported by a RM 1.4b outstanding order book.
Geographic Diversification: Strong presence in Malaysia, Singapore, China, and now India.
Margin Expansion: Progressive improvements in profitability as it moves into more complex turnkey projects.
