KUALA LUMPUR: George Kent (M) Bhd’s net profit fell 56.3% to RM3.59 million for 3QFY12 ended Oct 31, from RM8.21 million a year earlier, due to the deferment of water-related infrastructure projects.
In a filing with Bursa Malaysia, George Kent said the lower profit was also attributed to the deferment in the award of certain tenders for the supply of meters.
Revenue for 3Q fell 31.7% to RM31.24 million, while basic earnings per share was 1.6 sen against 3.6 sen. For 9MFY12, George Kent’s net profit fell 88.1% to RM12.3 million or 5.5 sen a share, on a revenue of RM103.32 million.
Chairman Tan Sri Tan Kay Hock said the results were in line with expectations, and reflect the cautious sentiments due to eurozone crisis and global economic slowdown.
“Although we experienced a softer market for our original equipment manufacturer (OEM) meters, we are pleased to see that exports of our non-OEM meters continue to improve, with healthy demand generating from the Indo-China markets,” he said.
Tan said George Kent will continue to upgrade its water meter plant in Puchong, and is on track to increase its production capacity to two million water meters and meter housings per year by year-end, from 1.3 million pieces. It is investing RM50 million to upgrade the plant to meet future demand.
On its infrastructure investments, water and construction division, George Kent said works on two water-related infrastructure projects had commenced and would contribute to the group’s earnings in the next financial year.
Tan said George Kent is actively tendering for meter contracts in Malaysia and abroad, and is also looking at securing more infrastructure projects under the 10th Malaysia Plan and Economic Transformation Programme.
George Kent gained two sen to close at RM1 yesterday.
This article appeared in The Edge Financial Daily, December 9, 2011.
In a filing with Bursa Malaysia, George Kent said the lower profit was also attributed to the deferment in the award of certain tenders for the supply of meters.
Revenue for 3Q fell 31.7% to RM31.24 million, while basic earnings per share was 1.6 sen against 3.6 sen. For 9MFY12, George Kent’s net profit fell 88.1% to RM12.3 million or 5.5 sen a share, on a revenue of RM103.32 million.
Chairman Tan Sri Tan Kay Hock said the results were in line with expectations, and reflect the cautious sentiments due to eurozone crisis and global economic slowdown.
“Although we experienced a softer market for our original equipment manufacturer (OEM) meters, we are pleased to see that exports of our non-OEM meters continue to improve, with healthy demand generating from the Indo-China markets,” he said.
Tan said George Kent will continue to upgrade its water meter plant in Puchong, and is on track to increase its production capacity to two million water meters and meter housings per year by year-end, from 1.3 million pieces. It is investing RM50 million to upgrade the plant to meet future demand.
On its infrastructure investments, water and construction division, George Kent said works on two water-related infrastructure projects had commenced and would contribute to the group’s earnings in the next financial year.
Tan said George Kent is actively tendering for meter contracts in Malaysia and abroad, and is also looking at securing more infrastructure projects under the 10th Malaysia Plan and Economic Transformation Programme.
George Kent gained two sen to close at RM1 yesterday.
This article appeared in The Edge Financial Daily, December 9, 2011.
