Stock Digest - Kelington Group Bhd - Industrial Gas Segment Picking Up

Moving forward, KGB’s outstanding orderbook of approximately RM1.30bn, which represents an orderbook-to-cover ratio of 2.9x against FY21 revenue of RM517.7m will provide strong earnings visibility over the next 2 years. We remain sanguine on KGB’s outlook that is well supported by the tenderbook of close to RM2.00bn as the group continues to leverage on the semiconductor players expansion plans with tenders skewing towards larger scale wafer fabrication projects.