KNM’s Managing Director Mr Ir Lee Swee Eng sold 1.6% shares
I just see this Info from HWangDBS research
The filing to Bursa Malaysia yesterday indicated that Mr Ir Lee Swee Eng, the Managing Director of KNM, has sold in total 63.65m or 1.6% KNM shares from 1-4 June 2009.Following is the details based on information from Bloomberg : -
We are unable to ascertain at this juncture if there will be further selling of shares by Mr Lee. We believe that the share sale may help to raise fund to redeem part of Mr Lee’s holdings under a share margin account. Recall that there was a force selling of KNM shares owned by Mr Lee by CIMB Bank in Oct 08. We understand that the share that was under share margin financing was c. 4% in Oct 08. This time round, the share sale is not under force selling but Mr Lee has raised around RM64m and this could be used to redeem his holdings with CIMB. Mr Lee still holds a 22.3% stake in KNM after the recent share sale. The earnings outlook for KNM has improved following the recovery in crude oil price. We expect new contracts from KNM’s RM18b tender book to flow through from 3Q09 onwards, on the back of sustainable oil price and improving 2H09 economic outlook. We maintain Buy and target price of RM1.15 based on 10x FY10F EPS, which is its mid-cycle valuation. KNM is trading at attractive 9x FY10F PE against local and regional peers’ average of 9x and 15x, respectively. Key risks for KNM include the following: (i) timing of contract awards to avoid earnings erosion in FY10-11F, (ii) prolonged delays in contract awards that could lead to margin compression, and (iii) stability of crude oil price.
Lucky sold out my KNM share already
The filing to Bursa Malaysia yesterday indicated that Mr Ir Lee Swee Eng, the Managing Director of KNM, has sold in total 63.65m or 1.6% KNM shares from 1-4 June 2009.Following is the details based on information from Bloomberg : -
We are unable to ascertain at this juncture if there will be further selling of shares by Mr Lee. We believe that the share sale may help to raise fund to redeem part of Mr Lee’s holdings under a share margin account. Recall that there was a force selling of KNM shares owned by Mr Lee by CIMB Bank in Oct 08. We understand that the share that was under share margin financing was c. 4% in Oct 08. This time round, the share sale is not under force selling but Mr Lee has raised around RM64m and this could be used to redeem his holdings with CIMB. Mr Lee still holds a 22.3% stake in KNM after the recent share sale. The earnings outlook for KNM has improved following the recovery in crude oil price. We expect new contracts from KNM’s RM18b tender book to flow through from 3Q09 onwards, on the back of sustainable oil price and improving 2H09 economic outlook. We maintain Buy and target price of RM1.15 based on 10x FY10F EPS, which is its mid-cycle valuation. KNM is trading at attractive 9x FY10F PE against local and regional peers’ average of 9x and 15x, respectively. Key risks for KNM include the following: (i) timing of contract awards to avoid earnings erosion in FY10-11F, (ii) prolonged delays in contract awards that could lead to margin compression, and (iii) stability of crude oil price.Lucky sold out my KNM share already
2 comments:
that 1.6% is not even 10% of his total shares. he did that to get pocket money going for holiday maa :D
oil prices will maintain at USD70, and probably shoot up to USD80-90. Would you think KNM will have significant correction with such scenarios? i dont think so.
Goldman Sachs, in its report dated June 4, says it is confident that the next major price up cycle is underway and forecasting USD75 to USD85 per barrel for end of 2009.
I think KNM will be around this level as long as oil price is keep above USD60 per barrel.
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