KUALA LUMPUR (June 26): George Kent (Malaysia) Bhd’s first-quarter (1Q) net profit fell 37% to RM13.51 million or 2.5 sen a share, from RM21.54 million or 3.8 sen a share a year earlier, due to a lower profit contributed by the engineering division. Revenue for the quarter ended April 30, 2019 dropped 17% to RM82.78 million from RM99.76 million previously.
In a statement yesterday, George Kent chairman Tan Sri Tan Kay Hock said the results were credible despite a small loss from the Light Rail Transit 3 project as construction works had yet to begin. He said demand for George Kent’s water meters, within and outside the country, exceeded forecasts during this period.
George Kent’s manufacturing facilities were also able to meet the increased demand in a timely manner thanks to the group’s investments to increase its production capacity, he said.
“I am encouraged by an increasingly strong demand for our water meters. We continue to add new markets. We are working towards manufacturing imported precision components, for us to become an integrated water meter manufacturer. This will give us a better control over our water meter supply and enhance our margins,” Tan added.
He said the group is committed to delivering its order book of over RM5 billion, providing earnings visibility for the next few years.
George Kent’s share price ended one sen or 0.89% lower at RM1.11 yesterday, with a market capitalisation of RM597.87 million. Year-to-date, the counter has risen 32%.
This article first appeared in The Edge Financial Daily, on June 26, 2019.