Posted by probability > 2019-07-03 15:16 | Report Abuse

nothing is easy...you better choose what you are most competent with...thats the best you can do..even though there is no certainty of success doing that....

coz you will never know where you would fall on the normal bell curve in that strategy of yours relative to others....except by trial and error

Posted by Patrick13 > 2019-07-03 16:15 | Report Abuse

Growth can come from expansion. But expansion doesn't necessarily mean growth.

probability you couple that with 'growth opportunities'...'growth' meaning expansion of market....you will hit the jackpot i guess.

Posted by (US/CHN trade war doesn't matter) Philip > 2019-07-03 17:31 | Report Abuse

Isn't the very fact that Gkent won a contract versus other competitors proof that it had a competitive advantage? There has to be a moat involved in getting to be the PDP of such a major project. And obviously there has to be some moat involved in getting the new fixed contract.

Previously, the contract as a PDP which involved consulting, monitoring and supervision was at a fixed rate ( consultant fee).In 2015, Prasarana appointed Malaysian Resources Corp Bhd (MRCB) and George Kent (M) Bhd as the PDP for the LRT 3 project at an approved construction budget of RM9bil. The PDP fee for the LRT 3 project, at its construction cost of RM15bil, would amount to RM900mil.

Now that Gkent has become the maincon and no longer need to worry about other parts, I am sure they will be looking at an even bigger payday.


>>>>>>>>

Gkent had not proven any competitive advantages other than contract was already awarded to Gkent. ( This is the very definition of a moat, when you can get something that others can't)

Posted by Vincent Tan > 2019-07-03 17:55 | Report Abuse

Anyone go agm next week

Posted by Icon8888 > 2019-07-03 18:07 | Report Abuse

Crony stock

Posted by GrahamNewman > 2019-07-03 19:54 | Report Abuse

Personally i think MYEG and GKENT do have their moats.

MYEG being a "distribution" company instead of a technology company(really, they are acting as a channel for various government and commercial services to reach their user/customer), the moat lies in the integrated government services to their customers coupled with some tag along commercial products. People who are dealing with government services don't want to go to so many sites to get things done, and they tend to remember only a few website names for them to transact with the government because these are mundane chores, people just want to go to one site to settle everything.

It is a needed service, with no close substitution(unless you want to drive down yourself), and with that fat margin, seems like price regulation is not readily enforced(MyCC please don't read this comment). Really its the whole package that makes it a moat, if you break it to the elements(website development, etc.), everyone can do it(TS Wong said it himself :what MYEG do, everyone can do), but knowing how to integrate and package the service and marketing to make customer associate the name with government service, that is what makes them special.

Then there is the question of the risk of not getting government contract. I believe when handing out these concession contracts, track records plays a very important role, and in this aspect first mover advantage is almost perpetual. If they done it right first time, no other competitor has better track record than them.

GKENT on the other hand, has a moat in the water meter manufacturing as they have the largest brass forging plant in SEA, so they might have a lowest cost operation in this region, and as they are implementing backward integration into precision components in the water meter, the moat may be widen further. And again branding do have some influence here, as shown by repeated buyers from water authority from SG & HK.

On the construction front, as they have previous track record of completing rail projects, and management has relationships with international rail players, this could be the moat that is guarding their margins. And the very fact that all their projects were completed on time(I know some of you might say the Ampang line delay is due to them, but construction projects involved a whole host of different players, so it can't be only the problem of a single player). Furthermore, if it was really their incompetence, why would they get LRT 3 again even after a change of government? And now as the project being a turnkey project, GKENT have more leeway in terms of managing cost to achieve more profits.

And also, just look at how the company utilize their incremental capital to augment their earnings over the past 10 years, it is almost unbelievable how efficient they are at utilizing new capital to increase earnings. It reflects management understands how much capital they need and how much they can give back to shareholders, not an act that you can easily find in BURSA companies.(Some companies just like to hoard profits and see their ROE rolling down a slope.)

After all, investing is not just about figuring moat, the price you paid is also a considerable factor. You can find a company with very good moat, but if you are paying 100 times more than intrinsic value, god knows how long you gonna wait to get the returns.

Posted by probability > 2019-07-03 20:00 | Report Abuse

Nicely put Grahamnewman - good to have you in i3

Posted by cheoky > 2019-07-03 20:01 | Report Abuse

https://mypay.com.my/main

Posted by cheoky > 2019-07-03 20:03 | Report Abuse

https://www.thestar.com.my/news/nation/2019/07/03/chief-secretary-govt-digitising-public-service-delivery-to-ensure-faster-service/

Posted by Patrick13 > 2019-07-03 20:37 | Report Abuse

Well said GrahamNewman
Nowadays companies are harder than in the past to have moat, because of fast changing technologies can easily emulate other competitive advantages.

Posted by popo92 > 2019-07-03 21:10 | Report Abuse

good inputs, Grahamnewman. That's a very fair judgement at least for me.

However i am not so convince with the moat you were referring with Gkent construction. I am not representing government but i believe government change PDP to turnkey, reducing the size and give back LRT 3 project to GKent because its the best they can do. They would definitely take back Gkent the award if there's no compensation required. Their previous track record of their rail projects (not so nice because with demerit on ampang line- quoted from our current government as opposition previously) But i am not saying they are really incompetence, after all you can hire a good team of engineers with money. But that doesn't make you have the moat over peers, you just can't say you have the moat because you won the tender.
>>>>>>>>>>>>>>>>>>>>>>
Furthermore, if it was really their incompetence, why would they get LRT 3 again even after a change of government? And now as the project being a turnkey project, GKENT have more leeway in terms of managing cost to achieve more profits.

Posted by (US/CHN trade war doesn't matter) Philip > 2019-07-04 07:17 | Report Abuse

Rumor mungers and lesser minds would be the first to repeat rumours that Gkent is a crony company.

Quick thinkers would have pointed out that all the rail tenders gkent participated in was an open tender and they were the lowest bidder.

Cronies usually cover the profits with directly awarded contracts or bring the highest bidder in open tender. Ergo fair game for MACC. So far I have not heard a single blip.

So where is the crony stock remark substantiated from? I have tried to find out but have yet to find any proof other than the fact they played golf together.

If that was the case, if I shook hands with azmin, does that mean we are gay partners together? Such a horrible world, politics.


>>>>>>>>>

con8888 Crony stock
03/07/2019 6:07 PM

Posted by CY > 2019-07-04 09:13 | Report Abuse

http://www.enanyang.my/news/20190703/砂州24亿合约待释-建筑股活力再现/

Posted by Icon8888 > 2019-07-04 11:05 | Report Abuse

nothing wrong with cronies

I love cronies, as long as can help me make money

Posted by Cockroach Paul Lee > 2019-07-04 13:25 | Report Abuse

Garuda back to 4.00 already....
When will Gkent back to 2.50?
Need Warren Buffet to invest Gkent is it?

Posted by (US/CHN trade war doesn't matter) Philip > 2019-07-04 20:08 | Report Abuse

Need time and effort and patience.

You think mix rice with water can straight away eat? Need to cook and wait.

All you can do is make sure got rice in pot, got electricity and got water, with right amount of time, you will have your rice to eat.

Hurrying the process won't help.

Posted by gorengking69 > 2019-07-04 21:08 | Report Abuse

People whos not buying at 1.12 because waiting for 1.00 now regret. The cycle will continue. Up up we go

Posted by oasischeah > 2019-07-05 17:43 | Report Abuse

Will drop back abit before it push up again. Waiting to buy soonas price is reasonable.. Lets see next week market. This is one of my favourite counter.

Posted by Vincent Tan > 2019-07-05 19:17 | Report Abuse

This month must reach 1.26, if not more down side to go

Posted by gorengking69 > 2019-07-05 19:32 | Report Abuse

Contra out. Then goreng coming

Posted by GrahamNewman > 2019-07-05 21:28 | Report Abuse

Well personally I felt Gkent has lesser moat than MYEG. But the price differential is much favourable to Gkent.

Because they were engaging in sort of commodity business rather than a franchise. In construction, it is kind of hard to stand out because the workforce is quite mobile and because of standardization in engineering works(building codes, ISO, etc), the output is usually not differentiated, at least not from the customer view point.

Hence I am looking for the lowest cost player in a level playing field. Of course in Malaysia, there is no exactly leveled playing field, you need connections to get projects, and since this is the condition here, having connections is a sort of competitive advantage(aside from the negative impression associated with connections) in preliminary stage. But being the lowest cost producer has the advantage in an absolute scale because ultimately, even if you have connections, if you can't manage well and keep cost in check, you can't even finish one project within budget and on time. Being the lowest cost producer is not just one advantage, it is a myriad of policies and culture that makes them low cost, and they are very underrated.

Btw I don't believe this crony culture in construction is unique here. In the U.S its even more rampant i believe, even in the defence and food industry. I mean objectively speaking, we should not view cronyism with a tainted glass. It is a by product of capitalism and it should be considered as one of the factors in assessing companies, as it could be a short term influencer in the profitability of the company.

Sorry for my idiosyncracies and weird thinking..

Posted by RainT > 2019-07-06 15:13 | Report Abuse

recent annual report story a lot about meter biz

less touch on construction already

means after this LRT3 finish, GKENT prospect on construction will be very dim

Posted by amzarb44 > 2019-07-06 20:08 | Report Abuse

Raint not necessarily, do you read bout PTMP penang?

Posted by amzarb44 > 2019-07-06 20:10 | Report Abuse

High speed rail, gkent jv with mmc gamuda alstom did you remember?

Posted by SHQuah > 2019-07-07 09:11 | Report Abuse

Invest in Gkent is like planting a fruit tree or pineapple. Next year can only get fruits and pineapple. Don't forget second half of this year will start LRT3 and 5 billions projects on hand for another few years.

Posted by amzarb44 > 2019-07-07 17:35 | Report Abuse

SHQUAH how bout mrt 3 project?

Posted by Vorster89 > 2019-07-07 23:40 | Report Abuse

http://www.guangming.com.my/node/496220/%E6%95%A6%E9%A6%AC%E9%80%81%E8%B1%AA%E7%A6%AE-%E5%BD%AD%E7%8D%B2%E6%89%B9637%E5%84%84%E5%B7%A5%E7%A8%8B?fbclid=IwAR0UQ0SPeM_1cir_2W9A0jmCvrK0QKBEQR5fw0rWFacasaIaCUq6uAPJwYs

gKENT got chance?

Posted by Teck Ng > 2019-07-08 10:24 | Report Abuse

good new, but constrution sector why all drop

Posted by SHQuah > 2019-07-08 10:39 | Report Abuse

https://www.nst.com.my/business/2019/07/502472/construction-sector-cusp-boom

It said laggards like TRC Synergy Bhd, Gabungan AQRS Bhd, Vizione Holdings Bhd, George Kent Malaysia Bhd and Crest Builder Holdings Bhd could potentially offer substantial upside.

Posted by RainT > 2019-07-08 12:08 | Report Abuse

@amzarb44

PTMP Penang is GAMUDA get already

no chance for GKENT

now only lets hope for ERCL and HSR, GKENT can get contract

Posted by SHQuah > 2019-07-08 13:00 | Report Abuse

https://www.thestar.com.my/news/nation/2019/07/08/ecrl-may-be-re-launched-july-25-says-loke/

ECRL may be re-launched July 25, says Loke

Posted by Lee Yong Hour > 2019-07-08 18:30 | Report Abuse

Almost buy and wait....。。。

Posted by Patrick13 > 2019-07-09 09:00 | Report Abuse

连通北京新加坡，泰国希望成为泛亚铁路枢纽

日前，泰国政府表示希望通过一个横跨亚洲多国的高铁网络，致力推动泰国发展成为东盟的物流枢纽。

《曼谷邮报》7月8日报道，这项庞大工程主要分为泰国到老挝及中国南部、泰国到柬埔寨、泰国到马来西亚以及曼谷到清迈四条路线，全长达3193公里，造价约2.07万亿泰铢（约4474亿人民币）。

泰国副交通部长拜林（Pailin Chuchottaworn）表示，泰国政府希望这个高铁网络可以从中国一路开往新加坡。他说：“到时候，人们就可从曼谷城区挽赐（Bang Sue）乘高铁北上北京或南下新加坡了。”

据悉，连接曼谷和东北部廊开府（Nong Khai）的第一阶段工程正在兴建，预计于2023年竣工。该线路将覆盖608公里，将成为老挝邻近廊开府（Nong Khai）的主要交通系统。

另据越南新闻社消息，根据计划，邦苏火车站将成为东盟最大的车站。这座四层高的车站占地面积为30万平方米，计划周围环绕商业区。该站还将与曼谷的城市铁路线和通往内陆省份的铁路线相连。

泰国工程研究院总工程师表示，如果区域集团继续支持铁路运输，东盟可以从用户转变为高速列车技术开发商。

他说，泰国政府目前正准备与马来西亚、越南和印度尼西亚达成新的铁路行业标准协议，因为他们还在为高速建设各种铁路模式上花费巨资。

总工程师表示，这些国家目前能够生产一些铁路相关产品，但因缺乏标准化使他们无法出口，该协议可以降低铁路建设和维护的总体成本。

http://www.sohu.com/a/325523196_115479

Posted by gorengking69 > 2019-07-09 09:37 | Report Abuse

Looks like gkent and mrcb up at the same time. What news?

Posted by Newbieinshare > 2019-07-09 10:17 | Report Abuse

gkent AGM today... who is attending? pls update us

Posted by SHQuah > 2019-07-09 10:38 | Report Abuse

https://www.thestar.com.my/news/nation/2019/07/09/fu-investment-opportunities-aplenty-along-bri-routes/

Investment opportunities aplenty along BRI routes

Posted by Vincent Tan > 2019-07-09 12:47 | Report Abuse

Nothing special agm. Last month gkent sign agreement with company to acquire technology to produce water meter component parts.

Posted by Vincent Tan > 2019-07-09 12:49 | Report Abuse

Other expenses higher in 2019 due to professional fees in bidding hsr and others project.

Posted by Newbieinshare > 2019-07-09 13:06 | Report Abuse

haha means price will drop back to square one later?

Posted by Patrick13 > 2019-07-09 13:09 | Report Abuse

Why no announcement release for this acquisition?

Vincent Tan Nothing special agm. Last month gkent sign agreement with company to acquire technology to produce water meter component parts.
09/07/2019 12:47 PM

Posted by Vincent Tan > 2019-07-09 13:22 | Report Abuse

I also wonder why no announcement

Posted by Newbieinshare > 2019-07-09 13:31 | Report Abuse

haha.. if announce everything then director has nothing to say anymore during AGM

Posted by LaksaBoy > 2019-07-09 14:16 | Report Abuse

The Chairman also said GK has already summit the ECRL bid.

Posted by Rwkl > 2019-07-09 15:46 | Report Abuse

Nope, he did nor say that

Posted by SHQuah > 2019-07-09 17:59 | Report Abuse

AGM proposed 10% share buy back approved.

Posted by Cockroach Paul Lee > 2019-07-09 19:28 | Report Abuse

Guys.... any point of view about IJM tunnel termination.....

Posted by bignate2019 > 2019-07-09 20:31 | Report Abuse

https://www.theedgemarkets.com/article/ijm-corp-seek-appropriate-legal-redress-after-losing-rm112b-lrt3-job

Posted by Rwkl > 2019-07-09 20:40 | Report Abuse

Unless I am totally out of sync, my AGM takeaways are

A. Metering will be big in a couple of years and
B. He couldn’t give 2 hoots on the ecrl

Posted by PotentialGhost > 2019-07-09 21:53 | Report Abuse

IJM get terminate not gkent

Posted by amzarb44 > 2019-07-09 22:25 | Report Abuse

Rwkl yes, the chairman tan sri kay hock said the company is planning to increase metering revenue to 75%