NOW SHOWING: THE TRILOGY OF
FAST & FURIOUS SHOWS
PART 8 – KGB / 0151
Kelington Group Berhad
SEE_Research
Issued date:
31 January 2021
Malaysia
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KGB /0151 =
Limit up - stock for
February & March 2021
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About Kelington Group
Listed on the Main Board of the Malaysia Stock Exchange, Kelington was founded in 2000 to provide Ultra High Purity (UHP) gas delivery solutions to the electronics and semiconductor industry.Kelington is a registered contractor with Construction Industry Development Board (CIDB) Malaysia and is certified to ISO 9001:2008 and OHSAS 18001:2007....
UHP DELIVERY SYSTEMS
We serve industries that require ultra-high purity (UHP) gases and chemicals in specialized applications.
PROCESS ENGINEERING
We engineer and construct mechanical and electrical systems that support industrial processes across many sectors.
GENERAL CONTRACTING
We support clients across several industries with our full-service range of contracting and construction management services.
INDUSTRIAL GASES
We manufacture and supply a wide range of industrial gases and specialty gases used by the electronics, semiconductor...
"WE ENGINEER SOLUTIONS - HELPING CUSTOMERS SUCCEED"
INDUSTRIES WE SERVE
Open Imagination
Locked Steel Gate
Mac Sunglasses
Open Imagination
Console Activity
Open Imagination
Backpack Contents
Sunset Bulb Glow
Dry Ice Manufacturer:
Ace Gases Marketing Sdn Bhd (Subsidiary of KGB)
Listed on the Main Board of the Malaysia Stock Exchange, Kelington was founded in 2000 to provide Ultra High Purity (UHP) gas delivery solutions to the electronics and semiconductor industry. We offer a comprehensive range of services in the design and installation of process and mechanical system to our customers.
CONTACT US
Headquarters:
3, Jln Astaka U8/83,
Bukit Jelutong Industrial Park,
Shah Alam
Phone:+603 7845 5696
+603 7848 3849
Email: enquiry@kelington-group.com
info@kelington-group.com
Copyrights © 2017 All Rights Reserved by Kelington Group Berhad.
MAIN CHAPTER
1 THE TWIN BUSINESSES (PFIZER COVID 19 VACCINES & Dry Ice)
1.1 In Malaysia for the past years when we were small in childhood years and until now, when we go out to enjoy our “rojak”, and after our savouring tasty “rojak”, next is located the “chendul” stall, we immediately helped ourselves – fully, together with the smell and colours of the “rojak” and “chendul”.
1.2 In this early January 2021, when the Pfizer covid 19 vaccine had arrived in Singapore, the Pfizer covid 19 vaccine in its storage period – requiring to store in (minus -70Oc). thus, very substantial amount of dry ice are required as per report by CNA – Chew Hui Min – 10:40PM, 21 Dec 2020, and the Singapore Transport Minister Mr Ong Ye Kung mentioned clearly the ground handler SAT can now produce up to 4 tonnes of dry ice a day (Video – first shipment of covid 19 vaccines in Singapore/CNA).
1.3 Some of my KLSE investors who are well known in the corporate community ask direct questions:
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Question Number 1
ANSWER |
Are there more than two or three listed companies in KLSE that manufacture and supply dry ice/liquid carbon dioxide? NO |
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Question Number 2 ANSWER |
Is there a listed company in KLSE that manufacture and supply dry ice/liquid carbon dioxide? YES |
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Question Number 3 ANSWER |
Please disclose and reveal the name of this company listed in KLSE? Kelington Group Berhad / KGB / 0151 |
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Question Number 4
ANSWER |
What Is Dry Ice? How Dry ice is made?
The answer is by liquefying carbon dioxide and injecting it into a holding tank, where it's frozen at a temperature of -109° F and compressed into solid ice. Depending on whether it's created in a pelletizer or a block press, dry ice can then be made into pellets or large blocks. cryocarb.com › how-dry-ice-is-made
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Their KGB 's subsidiary, Ace Gases Marketing Sdn. Bhd., manufacturing plants, including Shah Alam &Terengganu. Manufacturing dry ice for food grade, Halal-certified and complied company.
KGB /0151 is shariah approved stock in KLSE
CHAPTER 1
In Malaysia, no warehouses are having cold room facilities with minus 70 degrees, the main cold room warehouses that are having are fruit importers, having chilled rooms facilities with
(i) 0 degrees C to + 3 degrees C 95 % cold room space
(ii) 5 % cold room facilities - minus (-18 degrees C - - storing special produces such as
Dates, whereby this special fruits that are widely eaten during the fasting season of
Hari Raya Puasa.
The top 3 fruits importers
(a) Khaishen Trading Sdn. Bhd.
(b) LST Fresh Fruits (M) Sdn. Bhd.
(c) Great Harvest Fruit Sdn. Bhd.are based in Selayang,Klang Valley
In short, no cold room facilities existed, that can supply extreme cold room space of minus (- 70 degrees C), Pzifer vaccine requires extreme cold temperature of minus (- 70 degrees C) only dry cold ice can help to bring the necessary temperature of minus (- 70 degrees C).
Out of the total estimated 1,400 counters (including all warrants) that are listed in KLSE, only ONE company that manufacture, with internal plant, factory and dry cold ice, that can maintain and support the necessary requirements of Pzifer vaccine of minus 70 degrees C.
This listed company is KGB/0151 (Kelington Group Berhad)
Upon the arrival of the first batch of Pzifer covid vaccine around end Feb 2021, the physical dry ice in batches are mandatory, in short, a MUST to use immediately.
Expecting big run up, with 1 or even 2 times limit up.
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Do not miss the February 2021 & March 2021,
Strong thematic play on dry cold ice.
Collection on KGB /0151, around
(i) RM 2.45 as cycle low
(ii) Target Price RM4.18
CHAPTER 2
PFIZER COVID VACCINE REQUIRES SUPER COLD STORAGE, PROMPTING DRY ICE BUSINESS BOOM
This business boom in US reported by
Alexis McAdams Monday, December 14, 2020.
What do you do if you need to keep the Pfizer COVID-19 vaccine safety at super cold temperatures, but don't have the specialized freezer needed? Dry ice only.
CHICAGO (WLS) -- The Polar Ice Company on Chicago's West Side is jammed up with orders now that the Pfizer COVID-19 vaccine, which requires super cold storage, has arrived in Illinois.
"Every day we get different calls from hospitals and clinics, and more calls now because of the vaccine," said Luis Salgado, Polar Ice Company.
The team is now preparing thousands of pounds of dry ice. Salgado said they have about six drivers delivering truckfuls of dry ice every day. Each shipment is vital for the Pfizer vaccine, vials of which must be kept at -70 degrees celsius. That exceptionally cold temperature has prompted hospitals to turn to dry ice.
"The temperature is 109 degrees below zero, so pretty cold," Salgado said.
That's cold enough to keep the vaccine in top shape, especially since every second counts. Once out of the shipping container, the vaccine needs to be moved into a special freezer or put in a standard refrigerator within 90 seconds. There, it will thaw and can stay for up to 5 days. Once out of the refrigerator, a vial is quickly diluted into five doses that must be injected within two hours, or it will spoil.
Salgado, whose family-owned ice business has been operating for 60 years, said hospitals are using hundreds of pounds of dry ice pellets every day.
"They get a scoop and put it into the container where the vaccine is at," he explained. "They take it for delivery."
St. Anthony's Hospital does not have a large freezer system and is instead depending on the dry ice shipments.
"Every other day they are asking for 200 pounds," said Salgado.
The dry ice will help keep the vaccine frozen, but it only lasts up to 36 hours, which in turn means continuous demand.
"We had over 10 shipments and each customer probably took 300 to 800 pounds per day," Salgado said.
As a result, Polar Ice is bringing in more products to address the big spike in demand. The supply chain is in good shape for now, but that could change.
"We are doing fine right now and we have a backup plan so if someone orders 3,000 pounds we will have it in stock," he said.
He is excited to be part of this history and looking forward to fighting back against the virus that has ravaged his community.
"It feels good. If it is going to help a lot of people, I hope it does," said Salgado.
Fifteen more shipments of dry ice are expected to roll out of the West Side facility and to local hospitals in the coming days.
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CHAPTER 3
Kenanga forecasts higher orders for Kelington in FY21
TheStar Wed, Jan 20, 2021 08:56am - 1 week ago
KUALA LUMPUR: Kenanga Research has upgraded its earnings outlook on Kelington Group Bhd on expectation of another year of record high orders.
In the FY20, the group secured an all-time high order of RM490mil with SMIC continuing to award more jobs.
Existing SMIC jobs at hand are expected to keep the group busy until June, excluding on-going 2021 tenders.
"We came away from a conference call with the management feeling pumped-up over the group’s prospects.
"With increased expansions among wafer fab players taking place this year due to a surge in demand for semiconductor components, we believe that FY21 could yet be another record year, building upon the existing all-time high order of RM490m secured in FY20," said Kenanga.
It said Kelington as the incumbent has the advantage in winning the 2021 tenders, which will consist of UHP holl-up in all four SMIC fabs.
The group has also secured sub-contract jobs from TSMC via a partner as well as Micron, which is looking to expand due to the global memory shortage.
Kelington's tender book currently stands at RM900mil, spread equally across Malaysia, Singapore and China.
"Being regarded as a preferred vendor among large MNCs, the group is in a favourable position to benefit from various on-going expansions by the likes of WD Penang (announced RM2.3b investment), Micron SG (new fab construction), and Lam Research," the research house added.
Meanwhile, Kelington's LCO2 plant is expected to be halal-certified in a month's time, which will further increase demand as the group penetrates the food and beverage industry.
The plant utilisation has recently increased to 100% from 50% due to strong orders from Singapore, leading to higher average selling prices.
Kelington's operations in all 17 sites in Malaysia are on-going despite the movement control order as it has received approval as an essential service.
Kenanga maintained "outperform" on the counter while raising its target price to RM3.10 from RM2.30 based on a higher FY21 forecast price-earnings ratio of 32x.
"We believe KGB deserves to be traded at a higher multiple due to its exclusive exposure to the front-end semiconductor boom, which is very rare given that Malaysia is a back-end centric market," it said
Latest update on the Target Price RM 3.10.
A. LCO2 = Liquid carbon dioxide
B. SMIC = Semi-conductor Manufacturing International Corporation, China
C. TSMC = Taiwan Semiconductor Manufacturing Company, Taiwan
D. UHP = Ultra high purity
Thanks for reading and see you in the next post.
THE ABOVE IS NOT A BUY OR SELL CALL AND IS ONLY A PERSONAL OPINION, WRITTEN AS ARTICLE FOR SHARING PURPOSES TO KLSE COMMUNITY MEMBERS.
DISCLAIMER: Investment involves risks, including possible loss of investment and other losses.
This article and charts are provided for information only and should not be construed as a solicitation to buy or sell any of the instruments mentioned herein. The author may have positions in some of these instruments. The author shall not be responsible for any losses or profits resulting from investment decisions based on the use of the information contained herein. If investments and other professional advices are required, the services of a licensed professional person should be sought.
ISSUED BY SEE RESEARCH
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https://klse.i3investor.com/blogs/see_research/2021-02-17-story-h1541114277-NOW_SHOWING_THE_TRILOGY_OF_FAST_FURIOUS_SHOWS_PART_8_KGB_0151_Kelington.jsp