King Wan

King Wan: 2QFY14 net profit doubled to $2m, bolstered by higher receipts from operating activities and higher interest income. Accordingly, revenue surged 93% to $24.5m on the back of higher recognition from mechanical and electrical (M&E) contracts. Gross profit margin dipped 4.4ppts to 16.2% due to the completion of a number of contracts with better margins in 2QFY13. Group has M&E order book of $146.7m, with work up to 2016. Meanwhile, the listing of Kaset Thai Industry Sugar Company (KTIS) is still in progress, with the expiry of the share sale agreement extended to 15 Feb 2014. Counter trades at 1HFY14 annualized P/E of 11x and 1.2x P/B.