George Kent swings to net loss in 1Q despite revenue growth

• This was mainly attributed to an unrealised foreign exchange loss of RM6.86 million arising from foreign currency-denominated financial assets.

KUALA LUMPUR (Aug 19): Engineering and construction outfit George Kent (Malaysia) Bhd (KL:GKENT) slipped into the red in the first financial quarter ended June 30, 2025 (1QFY2026), with a net loss of RM8.10 million compared with a net profit of RM236,000 a year ago.

This was mainly attributed to an unrealised foreign exchange loss of RM6.86 million arising from foreign currency-denominated financial assets, the group said in a filing with Bursa Malaysia on Tuesday.

The group's loss per share came in at 1.55 sen, versus earnings per share of 0.05 sen a year earlier. No dividend was declared for the quarter.

The drop in earnings came despite quarterly revenue growing 24.4% year-on-year to RM37.65 million from RM30.27 million, lifted by stronger contributions from both its metering and engineering divisions.

Revenue from the metering division rose 9.9% to RM32 million from RM29.11 million, driven by higher export sales, although segment profit dropped 18.7% to RM5.50 million.

Its engineering division’s revenue surged more than four times to RM5.65 million from RM1.16 million, although segment loss widened to RM650,000 from RM180,000 previously.

Executive chairman Tan Sri Tan Kay Hock said the group remains focused on long-term growth through consistent performance, market diversification and innovation.

“A notable highlight this quarter is our strategic partnership with Qingdao Topscomm Communication Co Ltd to develop Malaysia’s first branded ultrasonic water meter. This breakthrough technology will enable highly accurate automated meter reading, reduce non-revenue water (NRW), and introduce AI-driven water management efficiencies to the market.

It represents a major step forward in advancing the nation’s smart infrastructure agenda,” he said in a statement.

"Looking ahead, we remain agile in navigating the evolving market conditions, building on our strong business foundations, and seizing opportunities that support our long-term vision for sustained growth and technological leadership,” Tan added.

Shares of George Kent rose one sen or 2.9% to close at 35.5 sen on Tuesday, giving it a market capitalisation of RM200 million.

Year to date, the counter has lost more than 8%.

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