George Kent Malaysia
Buy (Maintained)
Target Price: MYR5.03
Price: MYR3.77
Well Placed To Hit Record Year For Job Replenishment Market Cap: MYR2,124m

We turn more positive on GKent’s orderbook replenishment outlook after
recently making a re-assessment on its latest tender book. This led us to
revise our orderbook replenishment assumptions to MYR5.5bn for this
year, which would near double the group’s existing orderbook to
MYR11.3bn (from MYR5.8bn). Consequently, we revise our FY19-20
earnings higher by 10% and 27% respectively. We also revise our P/E in
our SOP valuation to 17x (from 15x). This is to reflect our optimistic view
on GKent’s orderbook replenishment outlook and its increasing position
as the proxy play for domestic rail-related infrastructure investments.
Maintain BUY with higher MYR5.03 TP (from MYR4.16, 36% total return).

Extraction from RHB Report dated 12 Feb.

谢分享。“由於公司的产品是100%供出口，所以销售都是以美元计价，令吉贬值对公司有利”

个人觉得这个statement可能有误导性的嫌疑。令吉贬值其实对EG不利，当令吉兑美金走软5%，公司会损失RM 885,000 (assume all other variables remain constant)。这是因为除了公司revenue & trade and receivables是以美金计算外，其实purchases & trade and other payable也大部分由美金计算，再加上公司大约40%的borrowings是由美金计算，所以整体而言如果令吉持续走软在这方面对EG而言并非好消息。

注：这些资讯都可以在EG 2015财政年的年报里找得到。谢。

另外，短期内如果美国Fed和国行都相继升息，会对EG造成一定的压力。理由很简单，EG的borrowings在现阶段仍显得相当的高 (RM 218.6 mil)，任何升息动作都会促使EG被逼缴付更高的利息，对盈利带来更大冲击。

短期内可能很难会出现凌厉走势，但个人仍就看好经过新老板入主及整装待发重新拟定新方向和策略后，在几年内这公司必会有一番作为。谢。

（只供参考，若有买卖，盈亏自负）