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Overview
Financial Highlight
HeadlinesBusiness Background George Kent is an engineering company involved in manufacturing, trading, and investment, development of services development of water infrastructure projects and provision of construction services. Its core businesses are in the water and construction industries. The company exports its products to Singapore, Thailand, Vietnam, Myanmar, Cambodia, Indonesia, Philippines, Papua New Guinea, Australia, Hong Kong, Sri Lanka, Kenya, South Africa, South America and the United Kingdom.
  Philip ( buy what you understand) I think sslee wants to see results before he invests in anything, which is a good thing for those who choose to invest in good companies that does constant share buybacks, pays consistent dividends, has never lost money before, has huge asset base and a order that is many multiples of the company market cap ( and also has 200 million in cash). I on the other hand, hate to put money with companies that have a lot of cash but still does multiple rights issues, raises money but losing money on qr, and doesn't have much in clarity of revenues, earnings and order books ( but borrows a lot of money and gives free warrants). It's a sad world today that individuals decide to put their money on loss making companies while dismissing companies that don't lose money even during mco epidemic. In any case, I have been building my positions, and the results of my stock performance over time currently is clear to see. Let time show who is right and who is wrong. I lose nothing by waiting. Would anyone sign a loss making contract especially if they could have forced LGE to keep to the awarded contract details or pay the huge penalty? On another note, Philip was the one who invested in topglove, pchem ,ql yinson and added positions in March. Sslee was the one who invested in jaks, Insas, bjland and writing commendable letters to bursa to report the directors of his investments. I wonder... Who would know gkent better? 16/09/2020 10:27 PM  Sslee Good morning Philip, You are the one know Gkent better but I just try to find out the facts, figures and the truth Remember what you wrote: {Philip ( buy what you understand) > Apr 6, 2020 2:41 PM | Report Abuse If you look at 2017, you already the figures that were coming into Gkent from lrt3 progress claims. After it was stopped in 2018 and revised to change them into main contractor instead of PDP partner. You can see the EARNINGS drop. Meaning the difference should be coming in from LRT3 progress claims. Now those claims were not cancelled, only delayed as per revised redesign of systems. Now that all those progress claims for work done have been submitted and received to begin in 2020(48% completion), you will begin to see more revenue and earnings resolution from lrt3. In any case, as a PDP partner their profit was capped at 6% of the project size previously, https://www.thestar.com.my/business/business-news/2018/08/08/mrcb-and-... As seen here, profit margins for GKENT will be higher, but the total sum will be lower for the redesign, redesign details here: https://themalaysianreserve.com/2018/07/17/lrt3-rationalisation-suffic... But gkent/mrcb is required to accept bigger risk as a fixed contract supplier instead of PDP partner. So they are allowed to use better subcons( no longer BN crony company sub like IJM), but hire specialist companies ( like the one I used to work for before retiring) who can give better price and do directly instead of sub sub like a standard bumiputera company. I believe their profit margins will be in the range of 1.2 billion or 10% of the contract, similar to standard main contractor margins. Meaning Gkent earnings will be around 50% of the JV, 600 million divided by 5 years, with a safer number similar to pre-najib lrt3 fees of 60-80 million a year. Of course with PDP structure Kent took zero risk, as their fees were based on contract value. With new structure more risk, direct control as main con, better profit margins. And if you believe that gkent used to be valued at rm4 reflecting the results? Knowing that lrt3 is still continuing and full payment guaranteed by federal government?} So I am looking forward to: 1. Progress claims for work done have been submitted and received to begin in 2020(48% completion), you will begin to see more revenue and earnings resolution from lrt3. 2. Gkent earnings will be around 50% of the JV, 600 million divided by 5 years, with a safer number similar to pre-najib lrt3 fees of 60-80 million a year. Thank you 17/09/2020 7:20 AM Philip ( buy what you understand) Sadly I think you already couldn't justify not buying gkent at 40+, pchem at 4.20+, topglove at 5+ and still holding cash waiting for another crash. So it's better to just let earnings results show you the share price performance, and not waste time showing you data shared by gkent staff in my telegram group. You would still require more and more information anyway that will not be revealed. Good luck on your investments. 17/09/2020 8:45 AM  neohts Philip.....you have data shared by Gkent staff in you telegram group. Please share with us if there is any good and bad news before official announcement.....Thanks. 17/09/2020 8:54 AM Sslee Thank you very much Philip, I really need a lot of good luck in my investment to compensate for my lack of competent. But anyhow I am learning. 17/09/2020 8:57 AM SHQuah Philip and Sslee..... thank you for all ty update. Can you all share with us the company that you recently bought or today just invested. The reason of investing in this company ? Maybe I could follow your investment plans. 17/09/2020 10:01 AM Sslee Dear SHQuah, I am still working full time and consider myself a beginner in investment. Since I am still drawing a good salary monthly hence I can afford to take a bigger risk. Recently I sold all my TAGB, TAE and bought some Armada base on IB report: https://klse.i3investor.com/ptservlet.jsp?sa=pts&q=armada Ewint because I like what warchest wrote https://klse.i3investor.com/blogs/TimelessInvestment/blidx.jsp And Top up Tunepro: https://www.insage.com.my/Upload/Docs/TUNEPRO/Minutes%20of%209th%20AGM.pdf#view=Full But please forewarn CharlesT has this to say about me: U r the only person so far i met in I3 who invested in share mkt not to make money but to fight with the co management... I guess u hv too much of money n time. And Master Philip: Still holding cash waiting for another crash. So it's better to just let earnings results show you the share price performance, and not waste time showing you data shared by gkent staff in my telegram group. You would still require more and more information anyway that will not be revealed. Good luck on your investments 17/09/2020 11:05 AM neohts I like Ewint and Tunepro. their financial result quite good. As for contra play I will go for Armada. 17/09/2020 11:34 AM SHQuah Sslee... thanks for sharing. I will try Armada for some buy & sell & buy play. Hopefully can make some money many times. 17/09/2020 11:43 AM SHQuah Every year I am using my Gkent dividend money to buy more Gkent. There's why I am having more and more Gkent share as I never sell any. 17/09/2020 3:12 PM GrahamNewman i think investing base on IB reports or somebody else's opinion is not wise at all. You will not know why you buy it and absolutely no idea when to sell. You got to think for yourself. It's thinking rather than polling that determines your success in investing. It's what Bertrand Russel said: "Most people would rather die than think, many do." It's the objective of IB to make investing sounds easy, its like selling real physical products, sometimes you wonder their ads is selling a physical product or really an independant evaluation. Because let's face it, most investors want other people to tell what to do, because making decision by oneself is not part of our evolutionary trait, and it consumes too much of our brain power to think independently. People likes the comfort of being in a group, that's why you have groups in Whatsapp, companies(group of people working together), house(people live together). I don't mean being in a group is bad, it has a lot of utility and is essential to human living, but "investing in a group" is an oxymoron. "Consumers" of IB reports want a simple buy or no buy recommend, and they supply it. Once you get the "first impression" from the report, its very hard to detach from it, that's why people always say first impression is very important. It's human nature to weigh first impression heavily. If you really think IB reports are useful, you can dispense the effort to even read the report and just hand them the money. You get to relax and not think while they work the money for you. And about the MRCB GKENT JV, yes it is equity accounting, no cashflow except dividend is coming in to GKENT. But does this accounting gimmickry paint the real picture? Let's say you own a business earning 100k a year, and reinvest every earnings @ 10% returns, back into it without paying you, the business owner, a single dollar, do you think your business is worthless? As for PDP to turnkey contractor, people say risk is higher, but which risk higher? financing risk? execution risk? As for construction project price, i'm not expert in the construction industry but having renovated my house recently(which at the end comes at 10% more than quoted price), i don't think the agreed price is fixed in eternity. I mean if a contractor can't even estimate exactly my house renovation price down to the hundreds, who can have 100% confidence the estimated price of a project as big as LRT 3 is fixed at the 11B price tag? I mean construction industry is the most complex work of any kind and any precise calculation is an illusion. Even if the contract price is fixed, i remember our current transport minister once commented on TV about the ECRL project that, even though ECRL publicly announced cost is 44B, there is another contingent reserve set aside for excess cost which will be paid out when the need arise. This contingent cost reserve is not announced publicly. That is why I am not too worried about margin compression in the JV. As i have said earlier, what the management IS doing is as important as what they are NOT doing. And I have not seen any detracting actions by GKENT management to derail itself from being successful. 17/09/2020 3:16 PM neohts GrahamNewman.......what the management IS doing is as important as what they are NOT doing. And I have not seen any detracting actions by GKENT management to derail itself from being successful. I like this sentence. Thanks. 17/09/2020 3:41 PM SHQuah If a person invest in stock market, every day cannot sleep and cannot eat, then you better don't play, because you are not suitable to invest in stock market. If you invest in Gkent at current price, you can sleep well and eat well because Gkent every year making profit and providing good dividend. Company for sure 100% won't close shop. 17/09/2020 10:49 PM Sslee Good morning SHQuah, You have a very good attitude about investment and life. Just be yourself and be happy. Don’t take my comments in Gkent seriously as I just trying to find faults with my UM senior Philip. You can read his blog to know his investment thinking. https://klse.i3investor.com/servlets/cube/blog/10154899906070843.jsp 18/09/2020 9:15 AM Philip ( buy what you understand) Sslee is always unhappy. When gkent does share buybacks, he complains and says he wants dividends. When he gets dividends he complains and says he wants to see earnings and revenues. I still recall when I first started posting my thoughts he says I am imaginary and fake investor and all sorts of words coming out. Today we know who is the real investor and the fake investor and how overpriced QL performed versus insas and friends. I invest in people I know, things I know and businesses I understand. I will leave it at that. 18/09/2020 9:26 AM Philip ( buy what you understand) The same cannot be said of companies like Jaks and insas, every year the share price drops, rcps and right issue comes out and other people prosper.... Sigh. >>>>>>>> SHQuah Every year I am using my Gkent dividend money to buy more Gkent. There's why I am having more and more Gkent share as I never sell any. 17/09/2020 3:12 PM 18/09/2020 9:27 AM Sslee Haha no offense taken. Just like to be trouble maker and question everything. 18/09/2020 10:33 AM gkent2000 Walao... faster get up le Gkent, i so support u but your price making me sad le. Haizzzzz 18/09/2020 4:41 PM BatteriesNotIncluded O&G Recovery - Serba Dinamik - 40 to 50% Upside Hidden Gem https://klse.i3investor.com/blogs/ndcg/2020-08-28-story-h1511677632-Serba_Dinamik_40_Upside_Hidden_Gem.jsp 22/09/2020 1:06 PM neohts George Kent.......buy now and next year you will be rewarded. A very good company. 24/09/2020 11:26 AM SHQuah 22 October dividend. Will use the dividend money to accumulate more. Cash rich company. 24/09/2020 12:36 PM neohts https://www.thestar.com.my/business/business-news/2020/10/05/time-to-accumulate-construction-stocks Time to accumulate construction stocks 05/10/2020 3:09 PM maxxtiew Hey bro, I've bought long time ago at 1.25, is it the right time to buy more and average down the costs? 08/10/2020 8:18 AM neohts yes.....buy more to average down. Current price good support level. Expect next year getting better dividend. Operation back to normal. 08/10/2020 9:36 AM SHQuah Share buy back again. Meaning company cash rich and expect coming Quarterly results quite good. 08/10/2020 5:31 PM neohts https://www.thestar.com.my/business/business-news/2020/10/09/six-mega-projects-may-be-rolled-over-into-budget-2021 Six mega projects may be rolled over into Budget 2021 09/10/2020 4:34 PM AnaiAnai last time I came here on 31aug price was 77sen. now only 67sen. Company buy back 20k or 30k per day. why the company cannot one shot buy 100k 200k to show the company is undervalue kah. 11/10/2020 10:46 AM AnaiAnai agree with your comment. Buy lower better safety margin than philip. and can sell before philip sell. 100% safest bet. Posted by Sslee > Oct 8, 2020 10:08 AM | Report Abuse Philip cost is 0.688. Anything below this cost is safe. 11/10/2020 10:48 AM neohts Interim Single-tier dividend....Will use the dividend money to accumulate more. Date Payable : 22 Oct 2020 12/10/2020 3:18 PM Devilsadvocatee "On the tendering front, GKent recently submitted a tender for the Layang 2 raw water transfer project (c.RM120m). Additionally, we understand GKent has submitted pre-qualification tenders for multiple hospital projects (design and build basis) whereby some have been retendered from last year. Besides these, GKent is setting its sights on the KVDT2 (Dhaya Maju LTAT terminated as turnkey) once tenders are called. In our view, tender outcome for these projects could be further delayed due to Covid-19 resurgence." This kinda assuage the common doubt that Gkent is a pure political company to have bagged those construction project, esp the mega ones. It might have at one point but now it has experience and track record to back it up. Esp on LRT 3 as a turnkey contractor. Once lrt 3 is done and dusted, it will be unquestionable regarding their capability. 16/10/2020 10:13 AM neohts Devilsadvocatee.......where do you get the information. Philip......do you have any knowledge ? 16/10/2020 1:53 PM SHQuah Even with just water meter, Gkent can still make profit. Gkent can never turn red. Just more or less profit. 16/10/2020 5:41 PM winner168 Something is fishy, with few analysts giving a Sell rating with TP @ 0.55, Insiders are buying back the shares... 21/10/2020 2:05 PM pushparaj winner168, I do feel the same. The IB's are advising to sell.But company buy back at a higher price 21/10/2020 6:36 PM SHQuah With so many shares buy back, yet still got so many sellers ? No team work, no cooperation. If everyone could hold, share price sure can go up. For those who has no plans to hold for long term, please don't buy. 23/10/2020 7:11 PM  | | ||||||||||||||||||||||||||||||||||||||||||||||||
