KRONO (Nov 9 QR Update)

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1) GROWING BUSINESS.

KRONO posted its latest quarterly results with RM4.9 million earnings - contributed by demand recovery across key markets, strong take-up of 'As a Service' and cloud hyperscale business.

2) GROWING REVENUE (& EARNINGS, WE BELIEVE).

KRONO expects revenue growth over the next few quarters.

Assuming a conservative RM5 million, non-growing quarterly earnings in the next four quarters, KRONO will make RM20 million earnings in the next four quarters. This is equivalent to an EPS of 3.8 sen.

3) HOW MARKET VALUES KRONO.

At a share price of 58sen, Mr Market values KRONO is at a forward 1-year PER of 15.3x.

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