GKENT (3204) - GKENT - Shining star in 2017
Gkent formed in 1930’ started in water service industry has now expanded into rail transportation and hospital construction.
Recent big project that is government linked like
i) Ampang LRT extension that completed on 30/06/2016
ii) Upgrading Hospital Kuala Lipis , completed on 23/04/2017
iii) On-going projects that will generate more revenue to the company like
- LRT3 from Bandar Utama to Johan Setia
- MRT from Sg Buloh to Putrajaya
- Building Endocrine Hospital Putrajaya and Hospital Tanjung Karang
Let’s looks into the fact
|
|
2013
|
2014
|
2105
|
2016
|
2017
|
|
EPS
|
11.3
|
16.1
|
9.35
|
16.67
|
26.97
|
|
EPS growth
|
-
|
42.4%
|
-41.9%
|
78%
|
61%
|
|
Gross dividend
|
6.5
|
7.5
|
5
|
7
|
10
|
|
Total current asset
|
239,239
|
388,962
|
454,735
|
531,166
|
741,744
|
|
Long term liabilities
|
14,040
|
10,035
|
8,585
|
1,729
|
4,565
|
|
Net cash
|
117,835
|
209,880
|
163,816
|
241,645
|
430,204
|
Peer comparison
|
|
GKENT
|
ENGTEX
|
MLGOBAL
|
CIHLDG
|
AJIYA
|
|
PE
|
15.63
|
6.35
|
54.75
|
15.4
|
11.13
|
|
ROE
|
25.30
|
11.50
|
2.25
|
13.10
|
6.77
|
|
Dividend per share
|
8.52
|
0.75
|
-
|
5
|
1.63
|
|
Market Capital
|
1585 M
|
406 M
|
422 M
|
376 M
|
250 M
|
Engtex PE improve from recent quarter after disposed a vacant industrial land , not related to business gain. Hence the cheap PE may not really reflect his business growth.
GKENT return of equity is highest among the peers, means that GKENT is among the peers who generating highest return from investor’s money.
Despite the stock price going up recently, the dividend payout still able to reach about 8.52% per share and is highest among the peers. This is very fascinating.
Can you imagine, with the upcoming project that will complete in near future, GKENT is full of potential of capital gain.
I believe that construction is a backbone for Malaysia transformation hence GKENT will be my first choice given the potential of this company has with his experience in building infrastructure since 1930s.
With conservative predict EPS growth of 30-40% per year, EPS in 2018 will be 36.4 cent. If PE remain around 15, the projected price will be RM 5.46, which is 29% gain from current price of RM 4.22
I wonder with such a good company, why PE should limited at 15? Recently JHM jumped to PE of 26, PENTA reach PE of 18. Being the largest construction company, GKENT has the potential to event reach PE of 20 and still consider cheap given the company’s future project to continue generate income.
“The difference between investment and gamble is whether you aware of what you did. Invest on logical fact lead you wealth vice versa gamble on illusion bring you to hell”- Ah Cheok
GKENT (3204) - GKENT - Shining star in 2017
http://klse.i3investor.com/blogs/1234/124734.jsp
