Board Change • Jul 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 2 experienced directors. 5 highly experienced directors. Independent Non-Executive Director Norliza Binti Mohamad Nawi was the last director to join the board, commencing their role in 2024. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to RM1.21, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 14x in the Construction industry in Malaysia. Total returns to shareholders of 1.8% over the past three years. Upcoming Dividend • May 22
Upcoming dividend of RM0.038 per share Eligible shareholders must have bought the stock before 29 May 2026. Payment date: 16 June 2026. Payout ratio is on the higher end at 76%, however this is supported by cash flows. Trailing yield: 3.3%. Lower than top quartile of Malaysian dividend payers (5.5%). Higher than average of industry peers (2.9%). New Risk • Apr 25
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 36% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Market cap is less than US$100m (RM352.2m market cap, or US$88.8m). Declared Dividend • Apr 22
Dividend of RM0.038 announced Shareholders will receive a dividend of RM0.038. Ex-date: 29th May 2026 Payment date: 16th June 2026 Dividend yield will be 3.1%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is covered by both earnings (73% earnings payout ratio) and cash flows (36% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 69% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Annonce • Apr 21
KKB Engineering Berhad, Annual General Meeting, May 22, 2026 KKB Engineering Berhad, Annual General Meeting, May 22, 2026, at 10:00 Singapore Standard Time. Location: abell hotel, no. 22, 4th floor, jalan tunku abdul rahman, 93100 kuching, sarawak, Malaysia Reported Earnings • Feb 14
Full year 2025 earnings released: EPS: RM0.052 (vs RM0.091 in FY 2024) Full year 2025 results: EPS: RM0.052 (down from RM0.091 in FY 2024). Revenue: RM177.0m (down 72% from FY 2024). Net income: RM15.0m (down 43% from FY 2024). Profit margin: 8.5% (up from 4.1% in FY 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 24% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Construction industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 21
Third quarter 2025 earnings released: EPS: RM0.007 (vs RM0.029 in 3Q 2024) Third quarter 2025 results: EPS: RM0.007 (down from RM0.029 in 3Q 2024). Revenue: RM43.8m (down 69% from 3Q 2024). Net income: RM2.05m (down 76% from 3Q 2024). Profit margin: 4.7% (down from 5.9% in 3Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 27% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Construction industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. New Risk • Nov 21
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 118% The company is paying a dividend despite having no free cash flows. Dividend yield: 6.2% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 118% Paying a dividend despite having no free cash flows. Minor Risk Market cap is less than US$100m (RM349.4m market cap, or US$84.3m). Reported Earnings • Aug 16
Second quarter 2025 earnings released: EPS: RM0.025 (vs RM0.012 in 2Q 2024) Second quarter 2025 results: EPS: RM0.025 (up from RM0.012 in 2Q 2024). Revenue: RM55.6m (down 49% from 2Q 2024). Net income: RM7.10m (up 109% from 2Q 2024). Profit margin: 13% (up from 3.1% in 2Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Construction industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Upcoming Dividend • May 30
Upcoming dividend of RM0.075 per share Eligible shareholders must have bought the stock before 06 June 2025. Payment date: 24 June 2025. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 5.4%. Lower than top quartile of Malaysian dividend payers (5.5%). Higher than average of industry peers (2.5%). New Risk • May 23
New major risk - Revenue and earnings growth Earnings have declined by 13% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 103% Paying a dividend despite having no free cash flows. Earnings have declined by 13% per year over the past 5 years. High level of non-cash earnings (41% accrual ratio). Minor Risk Market cap is less than US$100m (RM398.4m market cap, or US$93.7m). New Risk • May 22
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 41% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 103% Paying a dividend despite having no free cash flows. High level of non-cash earnings (41% accrual ratio). Minor Risk Market cap is less than US$100m (RM421.5m market cap, or US$98.9m). Reported Earnings • Apr 24
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: RM0.091 (down from RM0.092 in FY 2023). Revenue: RM634.3m (up 35% from FY 2023). Net income: RM26.2m (down 1.6% from FY 2023). Profit margin: 4.1% (down from 5.7% in FY 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 28%. Earnings per share (EPS) also surpassed analyst estimates by 13%. Revenue is expected to decline by 5.5% p.a. on average during the next 2 years, while revenues in the Construction industry in Malaysia are expected to grow by 14%. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Declared Dividend • Apr 23
Dividend increased to RM0.075 Dividend of RM0.075 is 7.1% higher than last year. Ex-date: 6th June 2025 Payment date: 24th June 2025 Dividend yield will be 5.4%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is covered by earnings (83% earnings payout ratio) but not covered by cash flows (223% cash payout ratio). The dividend has increased by an average of 6.5% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 29% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Annonce • Apr 22
KKB Engineering Berhad Announces First First and Final Single Tier Dividend Per Ordinary Share for Financial Year End December 31, 2024, Payable on 24 June 2025 KKB Engineering Berhad announced first and final single tier dividend per ordinary share for the financial year end December 31, 2024, payable on 24 June 2025. For the period, the company reported dividend of 7.5 sen per ordinary share with ex-date: 06 June 2025 and entitlement date of 09 June 2025. Annonce • Apr 21
KKB Engineering Berhad, Annual General Meeting, May 22, 2025 KKB Engineering Berhad, Annual General Meeting, May 22, 2025, at 10:00 Singapore Standard Time. Location: grand margherita hotel, jalan tunku abdul rahman, 93100 sarawak, kuching Malaysia Reported Earnings • Feb 25
Full year 2024 earnings released: EPS: RM0.091 (vs RM0.092 in FY 2023) Full year 2024 results: EPS: RM0.091 (down from RM0.092 in FY 2023). Revenue: RM634.3m (up 35% from FY 2023). Net income: RM26.2m (down 1.6% from FY 2023). Profit margin: 4.1% (down from 5.7% in FY 2023). The decrease in margin was driven by higher expenses. Revenue is expected to decline by 5.5% p.a. on average during the next 2 years, while revenues in the Construction industry in Malaysia are expected to grow by 14%. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Annonce • Feb 25
KKB Engineering Berhad Recommends First and Final Single Tier Dividend in Respect of the Financial Year Ended 31 December 2024 The Board of Directors ("Board") of KKB Engineering Berhad ("KKB") announced that the Board has on 24 February 2025: recommended a First and Final Single Tier Dividend of 7.5 sen per ordinary share in respect of the financial year ended 31 December 2024, for approval by shareholders at the forthcoming Annual General Meeting of the Company (“AGM”) to be held at a later date. The dates of dividend entitlement and payment will be announced at a later date. Major Estimate Revision • Nov 18
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from RM527.0m to RM497.0m. EPS estimate also fell from RM0.09 per share to RM0.08 per share. Net income forecast to grow 50% next year vs 39% growth forecast for Construction industry in Malaysia. Consensus price target down from RM1.95 to RM1.86. Share price fell 3.1% to RM1.54 over the past week. Price Target Changed • Nov 12
Price target decreased by 11% to RM1.86 Down from RM2.09, the current price target is provided by 1 analyst. New target price is 19% above last closing price of RM1.56. Stock is up 9.9% over the past year. The company posted earnings per share of RM0.092 last year. Reported Earnings • Nov 12
Third quarter 2024 earnings released: EPS: RM0.029 (vs RM0.034 in 3Q 2023) Third quarter 2024 results: EPS: RM0.029 (down from RM0.034 in 3Q 2023). Revenue: RM143.1m (up 2.2% from 3Q 2023). Net income: RM8.43m (down 13% from 3Q 2023). Profit margin: 5.9% (down from 6.9% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.4% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Construction industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 6% per year whereas the company’s share price has increased by 1% per year. Reported Earnings • Aug 23
Second quarter 2024 earnings released: EPS: RM0.012 (vs RM0.034 in 2Q 2023) Second quarter 2024 results: EPS: RM0.012 (down from RM0.034 in 2Q 2023). Revenue: RM109.2m (up 4.6% from 2Q 2023). Net income: RM3.40m (down 66% from 2Q 2023). Profit margin: 3.1% (down from 9.5% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Construction industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 7% per year and the company’s share price has also increased by 7% per year. New Risk • Aug 07
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: RM447.5m (US$99.6m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (RM447.5m market cap, or US$99.6m). Upcoming Dividend • May 29
Upcoming dividend of RM0.07 per share Eligible shareholders must have bought the stock before 05 June 2024. Payment date: 25 June 2024. Payout ratio is a comfortable 75% and this is well supported by cash flows. Trailing yield: 3.8%. Lower than top quartile of Malaysian dividend payers (4.3%). Higher than average of industry peers (2.2%). Reported Earnings • Apr 22
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: RM0.092 (up from RM0.041 in FY 2022). Revenue: RM471.0m (up 22% from FY 2022). Net income: RM26.6m (up 127% from FY 2022). Profit margin: 5.7% (up from 3.0% in FY 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 10%. Earnings per share (EPS) missed analyst estimates by 8.3%. Revenue is forecast to grow 4.1% p.a. on average during the next 3 years, compared to a 8.7% growth forecast for the Construction industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has increased by 6% per year. Declared Dividend • Apr 20
Dividend increased to RM0.07 Dividend of RM0.07 is 17% higher than last year. Ex-date: 5th June 2024 Payment date: 25th June 2024 Dividend yield will be 4.0%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is covered by earnings (76% earnings payout ratio) but not adequately covered by cash flows (93% cash payout ratio). The dividend has increased by an average of 3.4% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 38% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Annonce • Apr 19
KKB Engineering Berhad, Annual General Meeting, May 21, 2024 KKB Engineering Berhad, Annual General Meeting, May 21, 2024, at 10:00 Singapore Standard Time. Location: Abell Hotel, No. 22, 4th Floor, Jalan Tunku Abdul Rahman, 93100 Kuching Sarawak Malaysia Agenda: To receive the Audited Financial Statements for the financial year ended 31 December 2023 together with the Reports of the Directors and Auditors thereon; to approve the payment of a First and Final Single Tier Dividend of seven sen per ordinary share in respect of the financial year ended 31 December 2023 as recommended by the Directors; re-appoint Ernst & Young PLT as auditors of the Company until the conclusion of the next annual general meeting and to authorize the Board of Directors to fix their remuneration; and to consider other matters. Annonce • Apr 17
KKB Engineering Berhad Announces First and Final Single Tier Dividend for the Year Ended December 31, 2023, Payable on 25 June 2024 KKB Engineering Berhad announced first and final single tier dividend of 7 sen per ordinary share for the year ended December 31, 2023. Ex-Date is 05 June 2024. Entitlement date is 06 June 2024. Payment Date is 25 June 2024. Price Target Changed • Feb 28
Price target increased by 7.9% to RM2.05 Up from RM1.90, the current price target is an average from 2 analysts. New target price is 14% above last closing price of RM1.80. Stock is up 26% over the past year. The company is forecast to post earnings per share of RM0.12 for next year compared to RM0.092 last year. Reported Earnings • Feb 23
Full year 2023 earnings released: EPS: RM0.092 (vs RM0.041 in FY 2022) Full year 2023 results: EPS: RM0.092 (up from RM0.041 in FY 2022). Revenue: RM471.0m (up 22% from FY 2022). Net income: RM26.6m (up 127% from FY 2022). Profit margin: 5.7% (up from 3.0% in FY 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.4% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Construction industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has increased by 4% per year. Annonce • Feb 22
KKB Engineering Berhad Recommends First and Final Single Tier Dividend in Respect of the Financial Year Ended 31 December 2023 The Board of Directors of KKB Engineering Berhad announced that the Board has on 22 February 2024 recommended a First and Final Single Tier Dividend of 7.0 sen per ordinary share in respect of the financial year ended 31 December 2023, for approval by shareholders at the forthcoming Annual General Meeting of the Company to be held at a later date. Reported Earnings • Nov 22
Third quarter 2023 earnings released: EPS: RM0.034 (vs RM0.004 in 3Q 2022) Third quarter 2023 results: EPS: RM0.034 (up from RM0.004 in 3Q 2022). Revenue: RM140.1m (up 37% from 3Q 2022). Net income: RM9.73m (up RM8.70m from 3Q 2022). Profit margin: 6.9% (up from 1.0% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.2% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Construction industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Price Target Changed • Nov 22
Price target increased by 8.1% to RM1.74 Up from RM1.61, the current price target is an average from 2 analysts. New target price is 22% above last closing price of RM1.43. Stock is up 8.3% over the past year. The company is forecast to post earnings per share of RM0.093 for next year compared to RM0.041 last year. Reported Earnings • Aug 19
Second quarter 2023 earnings released: EPS: RM0.034 (vs RM0.006 in 2Q 2022) Second quarter 2023 results: EPS: RM0.034 (up from RM0.006 in 2Q 2022). Revenue: RM104.4m (down 4.9% from 2Q 2022). Net income: RM9.89m (up RM8.27m from 2Q 2022). Profit margin: 9.5% (up from 1.5% in 2Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 9.3% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Construction industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Major Estimate Revision • May 31
Consensus revenue estimates decrease by 13% The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from RM459.1m to RM401.7m. EPS estimate unchanged from RM0.088 per share at last update. Construction industry in Malaysia expected to see average net income growth of 33% next year. Consensus price target up from RM1.61 to RM1.69. Share price fell 4.9% to RM1.37 over the past week. Annonce • May 26
KKB Engineering Berhad Approves First and Final Single Tier Dividend for the Financial Year Ended 31 December KKB Engineering Berhad at the AGM, the shareholders approved the payment of a first and final single tier dividend of six (6) sen per ordinary share in respect of the financial year ended 31 December 2022 as recommended by the Directors. Reported Earnings • May 25
First quarter 2023 earnings released: EPS: RM0.012 (vs RM0.008 in 1Q 2022) First quarter 2023 results: EPS: RM0.012 (up from RM0.008 in 1Q 2022). Revenue: RM60.5m (down 35% from 1Q 2022). Net income: RM3.40m (up 42% from 1Q 2022). Profit margin: 5.6% (up from 2.6% in 1Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 7.8% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Construction industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 53% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Upcoming Dividend • May 22
Upcoming dividend of RM0.06 per share at 4.1% yield Eligible shareholders must have bought the stock before 29 May 2023. Payment date: 15 June 2023. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 4.1%. Lower than top quartile of Malaysian dividend payers (5.2%). Higher than average of industry peers (3.2%). Reported Earnings • Apr 22
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: RM0.041 (down from RM0.10 in FY 2021). Revenue: RM386.8m (down 1.2% from FY 2021). Net income: RM11.7m (down 55% from FY 2021). Profit margin: 3.0% (down from 6.6% in FY 2021). The decrease in margin was primarily driven by higher expenses. Revenue missed analyst estimates by 4.7%. Earnings per share (EPS) also missed analyst estimates by 38%. Revenue is forecast to grow 8.7% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Construction industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 52% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Reported Earnings • Feb 24
Full year 2022 earnings released: EPS: RM0.041 (vs RM0.10 in FY 2021) Full year 2022 results: EPS: RM0.041 (down from RM0.10 in FY 2021). Revenue: RM386.8m (down 1.2% from FY 2021). Net income: RM11.7m (down 55% from FY 2021). Profit margin: 3.0% (down from 6.6% in FY 2021). The decrease in margin was primarily driven by higher expenses. Revenue is forecast to grow 8.7% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Construction industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 52% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Reported Earnings • Nov 17
Third quarter 2022 earnings released: EPS: RM0.004 (vs RM0.037 in 3Q 2021) Third quarter 2022 results: EPS: RM0.004 (down from RM0.037 in 3Q 2021). Revenue: RM102.0m (up 2.9% from 3Q 2021). Net income: RM1.03m (down 89% from 3Q 2021). Profit margin: 1.0% (down from 9.7% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.4% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Construction industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 44% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Board Change • Nov 16
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. No experienced directors. 7 highly experienced directors. Independent & Non Executive Director Voon Kar Yong was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 19
Second quarter 2022 earnings released: EPS: RM0.006 (vs RM0.01 in 2Q 2021) Second quarter 2022 results: EPS: RM0.006 (down from RM0.01 in 2Q 2021). Revenue: RM109.7m (up 35% from 2Q 2021). Net income: RM1.61m (down 35% from 2Q 2021). Profit margin: 1.5% (down from 3.1% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 2.9%, compared to a 31% growth forecast for the Construction industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Reported Earnings • May 24
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: RM0.008 (down from RM0.037 in 1Q 2021). Revenue: RM93.4m (down 6.4% from 1Q 2021). Net income: RM2.39m (down 75% from 1Q 2021). Profit margin: 2.6% (down from 9.5% in 1Q 2021). Revenue missed analyst estimates by 6.8%. Earnings per share (EPS) exceeded analyst estimates by 26%. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Upcoming Dividend • May 23
Upcoming dividend of RM0.05 per share Eligible shareholders must have bought the stock before 30 May 2022. Payment date: 24 June 2022. Payout ratio is a comfortable 50% and this is well supported by cash flows. Trailing yield: 3.4%. Lower than top quartile of Malaysian dividend payers (4.6%). In line with average of industry peers (3.1%). Board Change • Apr 27
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. No experienced directors. 7 highly experienced directors. Independent & Non Executive Director Voon Kar Yong was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 16
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: EPS: RM0.10 (up from RM0.069 in FY 2020). Revenue: RM391.6m (down 4.0% from FY 2020). Net income: RM26.0m (up 47% from FY 2020). Profit margin: 6.6% (up from 4.3% in FY 2020). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 6.8%. Earnings per share (EPS) exceeded analyst estimates by 26%. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Annonce • Apr 14
KKB Engineering Berhad, Annual General Meeting, May 24, 2022 KKB Engineering Berhad, Annual General Meeting, May 24, 2022, at 10:00 Singapore Standard Time. Location: Riverside Majestic Hotel Astana Wing, Jalan Tunku Abdul Rahman Sarawak Malaysia Annonce • Apr 13
KKB Engineering Berhad Announces First and Final Single Tier Dividend for the Financial Year Ended December 31, 2021, Payable on June 24, 2022 KKB Engineering Berhad announced first and final single tier dividend of 5 sen per ordinary share for the financial year ended December 31, 2021. Ex dividend date is on May 30, 2022, Entitlement date is on May 31, 2022, payable date is on June 24, 2022. Annonce • Feb 24
Kkb Engineering Berhad Announces Recommendation of First and Final Single Tier Dividend of the Financial Year Ended 31 December 2021 KKB Engineering Berhad recommended a First and Final Single Tier Dividend of 5.0 sen per ordinary share in respect of the financial year ended 31 December 2021, for approval by shareholders at the forthcoming Annual General Meeting of the Company (“AGM”) to be held at a later date. Reported Earnings • Feb 24
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: RM0.10 (up from RM0.069 in FY 2020). Revenue: RM391.6m (down 4.0% from FY 2020). Net income: RM26.0m (up 47% from FY 2020). Profit margin: 6.6% (up from 4.3% in FY 2020). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 100%. Earnings per share (EPS) also missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 52%, compared to a 27% growth forecast for the industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Board Change • Dec 06
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. No experienced directors. 7 highly experienced directors. Independent & Non Executive Director Voon Kar Yong was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 19
Third quarter 2021 earnings released: EPS RM0.037 (vs RM0.043 in 3Q 2020) The company reported a poor third quarter result with weaker earnings and revenues, although profit margins were flat. Third quarter 2021 results: Revenue: RM99.1m (down 16% from 3Q 2020). Net income: RM9.63m (down 13% from 3Q 2020). Profit margin: 9.7% (in line with 3Q 2020). Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 17% per year, which means it is tracking significantly ahead of earnings growth. Executive Departure • Oct 02
Non Independent & Non Executive Director Syed Bin Syed M. E. Abdul-Moez Alsagoff has left the company On the 28th of September, Syed Bin Syed M. E. Abdul-Moez Alsagoff's tenure as Non Independent & Non Executive Director ended after 1.8 years in the role. We don't have any record of a personal shareholding under Syed's name. Syed is the only executive to leave the company over the last 12 months. Price Target Changed • Sep 15
Price target decreased to RM1.68 Down from RM2.00, the current price target is provided by 1 analyst. New target price is 28% above last closing price of RM1.31. Stock is down 11% over the past year. Reported Earnings • Aug 22
Second quarter 2021 earnings released: EPS RM0.01 (vs RM0.017 in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: RM81.0m (down 9.1% from 2Q 2020). Net income: RM2.47m (down 43% from 2Q 2020). Profit margin: 3.1% (down from 4.9% in 2Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 15% per year whereas the company’s share price has increased by 14% per year. Upcoming Dividend • Jun 28
Upcoming dividend of RM0.04 per share Eligible shareholders must have bought the stock before 05 July 2021. Payment date: 22 July 2021. Trailing yield: 2.8%. Lower than top quartile of Malaysian dividend payers (4.1%). Higher than average of industry peers (2.5%). Reported Earnings • May 21
First quarter 2021 earnings released: EPS RM0.037 (vs RM0.026 in 1Q 2020) The company reported a decent first quarter result with improved earnings and profit margins, although revenues were weaker. First quarter 2021 results: Revenue: RM99.7m (down 7.8% from 1Q 2020). Net income: RM9.52m (up 40% from 1Q 2020). Profit margin: 9.5% (up from 6.3% in 1Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Annonce • May 18
KKB Engineering Berhad Announces First and Final Dividend, Payable on 22 July 2021 KKB Engineering Berhad announced a first and final single tier dividend of 4 sen per ordinary share for the financial year ended 31 December 2020. Payment date is 22 July 2021. Ex-date is 05 July 2021. Entitlement date is 06 July 2021. Upcoming Dividend • May 17
Upcoming dividend of RM0.04 per share Eligible shareholders must have bought the stock before 24 May 2021. Payment date: 15 June 2021. Trailing yield: 2.7%. Lower than top quartile of Malaysian dividend payers (4.0%). Higher than average of industry peers (2.2%). Reported Earnings • Apr 18
Full year 2020 earnings released: EPS RM0.069 (vs RM0.18 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: RM407.9m (down 27% from FY 2019). Net income: RM17.7m (down 63% from FY 2019). Profit margin: 4.3% (down from 8.5% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 25
Full year 2020 earnings released: EPS RM0.069 (vs RM0.18 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: RM407.9m (down 27% from FY 2019). Net income: RM17.7m (down 63% from FY 2019). Profit margin: 4.3% (down from 8.5% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Analyst Estimate Surprise Post Earnings • Feb 25
Revenue and earnings miss expectations Revenue missed analyst estimates by 9.1%. Earnings per share (EPS) also missed analyst estimates by 43%. Over the next year, revenue is forecast to grow 42%, compared to a 19% growth forecast for the Construction industry in Malaysia. Is New 90 Day High Low • Feb 24
New 90-day low: RM1.53 The company is down 4.0% from its price of RM1.60 on 26 November 2020. The Malaysian market is up 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Construction industry, which is up 1.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is RM17.73 per share.