The following table sets out the financial highlights based on the combined statements of comprehensive income for FYE 2020 to 2023:
Major Customers
The top 5 major customers for FYE 2023 are as follows:
The top 5 customers contribute 60.7% of the company's revenue. The management mentioned that due to the nature of the business, the company is not dependent on any of these major customers because their design, fabrication, installation, and/or commissioning solutions are project-based. Therefore, they do not have any long-term agreements with the customers.
In this case, the company will be more concerned with sustainability and its ability to secure new projects and customers rather than focusing on existing clients who provide high revenue.
Major Suppliers
The top 5 major suppliers for FYE 2023 as follows:
The top 5 suppliers account for 26.4% of the purchases. The management disclosed three points regarding the current supplier status: (i) they do not enter into any long-term contracts with their major suppliers; (ii) they have not experienced any material supply disruptions or delays from their major suppliers from FYE 2020 to FYE 2023; (iii) they are not dependent on any of their major suppliers as they can source similar supplies from alternative suppliers.
According to Smith Zander's research, the industrial process equipment industry in Malaysia is competitive and fragmented due to the large number of industry players including public listed companies, large private companies as well as small to medium enterprises. Industry players may design and/or fabricate industrial process equipment as standalone products to be sold to customers or as part of the provision of design, fabrication, installation and commissioning services of industrial facilities where multiple integrated equipment are sold to customers.
Further, industry players who manufacture certain types of industrial process equipment such as boilers and pressure vessels in Malaysia are subject to stringent regulations and safety standards, whereby such industry players must be registered as a competent firm with the Department of Occupational Safety and Health (“DOSH”), granting them the approval to manufacture steam boilers, unfired pressure vessels, unfired pressure vessels (seamless pipe) and/or fired pressure vessels, in Malaysia. As at 4 April 2024, based on publicly available information, there were approximately 101 companies in Malaysia registered as competent firms and granted approval by DOSH to manufacture steam boilers, unfired pressure vessels, unfired pressure vessels (seamless pipe) and/or fired pressure vessels, with their approvals being in effect as of that date.
Key Industry Drivers
Key Industry Risks and Challenges
Industry/Market Share
In 2023, the industrial process equipment industry size in Malaysia was recorded at RM23.50 billion. For the financial year end 31 October 2023, Kawan Group’s revenue derived from the provision of design, fabrication, installation and/or commissioning of industrial process equipment, process plants as well as renewable energy and co-generation plants was recorded at RM98.20 million, and thereby Kawan Group captured a market share of 0.42% in the industrial process equipment industry in Malaysia.
Source: Smith Zander
The company's business objectives are to maintain sustainable growth and create long-term shareholder value. To achieve its business objectives, the company will implement the following business strategies:
Opportunities
Risk
Click here to refer the IPO - Kawan Renergy Berhad (Part 1)
Interested to start trading? Send your inquiry now! https://bit.ly/mqtatrade
We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.
We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedback coming in!
This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.
MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks.
MQ Trader stock analysis system is SPONSORED for MQ Trader members. To use this amazing tool, you can sign up via MQ Trader Sign Up!
Please do not hesitate to contact us if you have any enquiry:
Facebook: https://www.facebook.com/mqtrader
Instagram:https://www.instagram.com/mqtrader
MQ Chat: https://messenger.i3investor.com/m/chatmq
YouTube: https://www.youtube.com/channel/UCq-26SGjlQTVQfO7DoEihlg
Email: admin@mqtrader.com
Chart | Stock Name | Last | Change | Volume |
---|