Affin Raises KNM Target To MYR0.88

Affin Research ups KNM Group target to MYR0.88 from MYR0.83 (based on 11X FY10 EPS), after revising up FY10-FY11 earnings forecasts by 4%-6%.

Keeps Add call, says "it is encouraging to see that KNM has successfully replenished its orderbook in 3Q09 (now stands at MYR3.2 billion)." Broker thinks reaching MYR4 billion mark is crucial to sustain earnings momentum, to help stock's re-rating process. "We expect the MYR4 billion mark is likely to be achieved in early 2010."