Wednesday, 24 August 2011


KNM disappoints again. Its FY11Q2 registered a profit after tax of RM9.9mil. However, a big chunk of it comes from tax incentive given by the government. Without it, the profit before tax is a mere RM1.8mil this quarter for such a "big" company. This figure means the PBT is down 71% QoQ and down 78% YoY, despite a better revenue.

RM mil Revenue PBT Debt
FY10 Q1 373 0.2 1160
FY10 Q2 383 8.3 1080
FY10 Q3 418 41.0 1070
FY10 Q4 384 6.9 1050
FY11 Q1 413 6.3 1010
FY11 Q2 544 1.8 1030

With a profit like this, how is it going repay the big sum of debt? 

A bit of positive is the rising revenue, order backlogs of  RM5.5bil and tender book of RM17bil. If the overall market is slow to improve and the profit margin continue to diminish, will we see KNM making loss in future quarters?

How about KNM's profit guidance of EBITDA of RM363mil for FY2011???

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