GKENT (3204) : George Kent: Another Stable Quarter
With the recent red
sea market, I guess there is not much people having the mood to read
quarter report release. Well, my thinking is that instead of looking at
the stock price frequently, why not take a book/course to upgrade
yourself or look through the companies to find any potential gems since
the price now is getting more attractive unless you want to buy/sell
your counters.
Okay, back to the
post. George Kent always in my watch list and gone through ups &
downs in terms of stock price throughout the past few months. The group
just released its Q3FY2015 report yesterday.
Higher revenue but
flat net profit if compare to corresponding quarter last year. This was
due to higher contribution from its construction segment that fetched
far lower profit margin.
EPS was diluted due to the bonus issue of 1-3 that just completed months ago.
For the cumulative 9
months period, the group net profit increased from RM17.7 mils to
RM19.8 mils, which showed around 11.8% improvement.
In terms of
dividend, the group so far announced 3.2 cents dividend compared to 3.0
cents last year (Ex-bonus issue). Thus, in terms of dividend in dollar,
it was almost 42% increases!
What surprised me
is that its manufacturing segment had showed a drop in performance. I
expect this segment will keep on improving since it mentioned that they
had secures new contracts from Vietnam and Singapore for their meter
products.
The management also
failed to explain the reason behind this performance drop in quarter
report and press release. I dropped an email to their IR and hopefully
they will reply me soon.
For its
construction segment, there is steady contribution from its Ampang LRT
line extension project. As far as I know, the group's current
construction order book is only left the Ampang LRT line extension job
and the newly awarded Kuala Lipis Hospital projects but the group only
recognised 1/3 of the Ampang LRT line RM1.08 bil project. So, it's still
okay for me at this moment.
For its balance
sheet, nothing much special to mention other than the increases in trade
receivables and trade payables. Will monitor on next quarters.
So, another stable
quarter for me. But with the recent drop in crude oil price, it's
directly affected our government's budget and expenditures and so does
the construction job orders.
Hopefully a better meter manufacturing performance and a good dividend payout ( Currently DY >5% )
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