George Kent's 1Q net profit jumps 52% on higher engineering income

by **Cals** Thu 30 Jun 2016, 00:37

George Kent's 1Q net profit jumps 52% on higher engineering income

By Ahmad Naqib Idris / theedgemarkets.com | June 29, 2016 : 6:41 PM MYT

KUALA LUMPUR (June 29): George Kent (Malaysia) Bhd reported a 52% jump in net profit to RM15.01 million or 5 sen per share for the first quarter ended April 30, 2016 (1QFY17), from RM9.87 million or 3.3 sen per share in the previous year's corresponding quarter, as revenue from its engineering division spiked 169%.

Its latest quarterly revenue doubled to RM122.96 million from RM59.03 million in the same period a year ago, its bourse filing today showed.

In a statement today, George Kent said the spike in revenue in its engineering division was due to steady progress of ongoing projects.

Meanwhile, its metering segment also saw an 18% increase in revenue, driven by higher demand from local and original equipment manufacturer (OEM) markets. However, segmental profit fell 25% to RM3.73 million for the quarter, impacted by volatile foreign exchange rates.

"These results indicate a positive trend for another good year. All divisions are contributing positively. The board is optimistic of the group's prospects for the financial year ending Jan 31, 2017," said the group on its prospects.

George Kent also announced that it has bagged a contract from Public Utilities Board (PUB), Singapore, for the supply and delivery of 323,630 units of DN15 Brass PSM-T water meters for S$4.9 million (RM14.7 million).

It said the meters will be delivered in 10 batches over 18 months, starting September 2016.

"The award by PUB is the third consecutive contract to George Kent since 2012. In September 2015, George Kent won an open tender to supply 600,000 units of DN15 Brass PSM-T water meters for a total sum of RM28.9 million — one of the largest single order in the region — from Hong Kong Water Supply Department," it said.

George Kent closed 2 sen or 1.09% higher at RM1.85 today, giving it a market capitalisation of RM552.76 million.