KKB has just announced its results for FYE31/12/2009. For 4Q2009, its net profit increased by 14.4% q-o-q or 3-fold to RM12.0 million while turnover increased by 27.0% q-o-q or double y-o-y to RM62.1 million. The improved performance is attributed to increased revenue from the Engineering & Civil Construction divisions. KKB is involved in steel fabrication and the manufacturing of liquefied petroleum gas cylinders, steel pipes and hot dip galvanising and civil construction.
Table 1: KKB's 8 quarterly results
Chart 1: KKB's 10 quarterly results
Valuation
KKB (at RM4.00 as at 10.00am) is trading at a PER of 8.9 times (based on the last 4 quarters' EPS of 45 sen). Based on a PER multiple of 10 times for a medium-size company, I think KKB's fair value of RM4.50.
Technical Outlook
KKB's immediate horizontal resistance is at RM4.50 while its horizontal support is at RM3.25.
Chart 2: KKB's monthly chart as at Feb 23, 2010 (Source: Tradesignum)
Conclusion
Based on satisfactory financial performance, reasonably attractive valuation & positive technical outlook, KKB remained a good stock for long-term investment.
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