Highlight George Kent aims to boost order book by RM3 billion

by **Cals** Wed 01 Jul 2015, 01:11

Highlight
George Kent aims to boost order book by RM3 billion

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By Ahmad Naqib Idris / themalaysianinsider.com | June 30, 2015 : 5:47 PM MYT

PETALING JAYA (June 30): George Kent (Malaysia) Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) aims to grow its orderbook by between RM2 billion and RM3 billion in current financial year ending Jan 31, 2016 (FY16).

George Kent's (fundamental: 1.4; valuation: 1.4) chairman Tan Sri Tan Kay Hock said the group's orderbook currently stands at slightly over RM1 billion, which could last the company for two years from now.

"This year, our target is to add another RM2 billion or RM3 billion, from our tender book of about RM10 billion," he told the media, after the group’s AGM this afternoon.

Tan explained that George Kent is bidding for water and healthcare infrastructure projects, and also railway projects. He added that the group is also bidding for some of the packages for the Mass Rapid Transit 2 (MRT2) project.

On reports that the joint venture between Malaysian Resources Corp Bhd (MRCB) ([You must be registered and logged in to see this image.] Financial Dashboard) and George Kent has been shortlisted as the project delivery partner (PDP) for the Light Rail Transit 3 (LRT3) project, Tan commented that Syarikat Prasarana Negara Bhd is still evaluating the submitted proposals.

"Seven parties had submitted their proposals to Prasarana about three to four weeks ago, which was the final submission for the request for proposal (RFP). This is where we are now," said Tan.

Meanwhile, on its RM1.1 billion Ampang LRT line systems installation contract, Tan said there will be some delay to the completion of the project, which was initially slated to be completed in March next year. Consequently, there might be extra costs incurred due to the delay.

"There will be some delay, but we will try to catch up. It could be delayed by a year. This is mainly due to issues that are beyond the control of Prasarana," Tan explained.

George Kent's share price gained three sen or 2.4% to close at RM1.28 today, bringing its market capitalisation to RM375.51 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)