KUALA LUMPUR (Feb 14):Affin Investment Bank Research is maintaining its sell call on KNM GROUP BHD [] at RM1.04 and lowered the target price to 84 sen.
The research house said on Tuesday it was not optimistic about KNM’s proposed GBP450 million (approximately RM2.2 billion) Peterborough Energy Park (PEP) project in the UK.
On Feb 8, KNM, the contractor turned owner for the PEP signed a conditional sale and purchase agreement with the PEP project site owner to purchase the project land (approximately 55 acres) for GBP25 million (RM120 million).
“In view of the ongoing global economic uncertainties, cautious market sentiment (especially in Europe), KNM’s weak earnings track record and its lack of track record in renewable project ownership, we are not optimistic on the PEP project and we believe securing the project funding will be challenging.
“Besides, the previous project owner had failed to achieve financial close after negotiating with bankers for over a year,” said Affin Research.
The research house said on Tuesday it was not optimistic about KNM’s proposed GBP450 million (approximately RM2.2 billion) Peterborough Energy Park (PEP) project in the UK.
On Feb 8, KNM, the contractor turned owner for the PEP signed a conditional sale and purchase agreement with the PEP project site owner to purchase the project land (approximately 55 acres) for GBP25 million (RM120 million).
“In view of the ongoing global economic uncertainties, cautious market sentiment (especially in Europe), KNM’s weak earnings track record and its lack of track record in renewable project ownership, we are not optimistic on the PEP project and we believe securing the project funding will be challenging.
“Besides, the previous project owner had failed to achieve financial close after negotiating with bankers for over a year,” said Affin Research.
