George Kent 2Q profit rises on higher revenue

By RAHIMI YUNUS / Pic By BLOOMBERG

George Kent (M) Bhd has registered a 24% year-on-year (YoY) increase in net profit to RM25.4 million, or 4.5 sen earnings per share, for the second quarter (2Q) ended July 31, 2017, on the back of good performance by its engineering and metering divisions.

In an exchange filing yesterday, the engineering and metering solutions provider’s revenue increased by 14% YoY to RM187.6 million in 2Q.

Its engineering business raked in revenue of RM147.9 million, or 12% more, YoY on the back of steady progress in construction projects in hand.

Currently, construction accounts for 96% of the revenue and 91% of the segment profit of its engineering division.

George Kent’s core water meter division posted a 21% YoY jump in revenue to RM39.7 million for the quarter under review, driven by both local and export sales to markets like Nepal and Singapore.

Earlier this month, George Kent secured a tender to supply and deliver 650,000 DN15 Brass PSM-T water meters worth RM28.7 million to the Water Supplies Department (WSD) in Hong Kong.

The meters, the second contract consecutively from WSD, will be delivered to WSD over two years in 24 shipments

“Completing the Ampang LRT line extension project (LRT2) within the stipulated timeline and winning the Hong Kong water meter tender award have strengthened our reputation as the premier engineering and metering solutions provider. We will continue to seek opportunities to grow the already strong orderbook of RM5.93 billion,” group chairman Tan Sri Tan Kay Hock said in a press statement yesterday.

The company has declared an interim dividend of 2.5 sen per share, to be paid on Nov 9, 2017.

George Kent’s share price closed at RM3.05, up 1.67% or five sen, giving it a market capitalisation of RM1.71 billion.