Quick take: Kelington rises on RM40mil UHP contract

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KUALA LUMPUR: Shares in Kelington Group Bhd climbed in early trade Wednesday after securing a RM40mil ultra high purity (UHP) contract for a wafer fab in Singapore.

The counter added 2.92%, or five sen to RM1.76 at 9.014am. KGB-WA rose 2.7%, or 2.5 sen to 95 sen.

Kelington said its indirect unit Puritec Technologies (S) Pte Ltd secured the contract, which is its third UHP job, from a global leader in engineering and project management of high-technology facilities, which is engaged by a global leading semiconductor manufacturer.

Under the contract, Kelington will supply and install process exhaust distribution ductwork.

The project starts mid-October and is slated to be completed by December 2022.

Kenanga Research said Kelington extended its winning streak, securing its third job award from the world’s third largest semiconductor wafer foundry player.

“All three awards totalled to RM134mil, representing a 100% win rate from this customer which is slated for an IPO on Nasdaq Stock Exchange by year-end.

“This brings year-to-date job wins to a new high of RM841mil while its order-book hits a record RM979mil,” it said.

The research house said Kelingto remained its top hidden gem pick owing to its healthy job pipeline and secular growth story,” Kenanga said, adding that it has reiterated its “outperform” call with a target price of RM2.50.



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