The Star’s online report yesterday said Chevron has announced that the Gorgon gas project has been approved and will be developed off northwest Australia. Chevron will partner with ExxonMobil and Royal Dutch Shell to develop the gas field. The report also said the project has appeared to be more certain after PetroChina agreed to buy 2.25m tonnes of LNG p.a. from the gas field.
Approval is good news for Malaysian companies too. We believe the main beneficiaries will include Wah Seong and KNM, which have put in their bids for jobs in the Gorgon project. We understand that Wah Seong stands a very good chance of winning at least part of the pipe coating jobs since it is one of the two main bidders for the project, other than Bredero Shaw. As for KNM, we understand from the company’s management that it too is bidding for higher-end process equipment jobs. The group has significant presence in Australia through its subsidiary, KPL. Maintain Buy on Wah Seong (TP: RM2.78) based on a PER of 12x FY10 EPS) and KNM (TP: RM1.01), based on PER of 10x FY10 EPS).
My View (3.24pm, 15/09/2009) :-
"I guess uptrend on KNM stock soon or later once the project approved. KNM is cheaper than Wah Seong"
17th Sept must hv traders profit taking activity... u want to go in then or now?
ReplyDeletewith this i will change my selling price to RM1.02 instead.
ReplyDeleteI will go in when profit taking activity happen. Let's they all panic first :)
ReplyDelete