Posted by Philip Greta > 2019-12-31 08:15 | Report Abuse

Philip Greta Fyi before my retirement last month, the company I worked for was a new nominated subcon for gkent for the m&e control system.

As it is right now, the previous price was skyrocketing due to crony company selection, based on overly expensive specs.

You are right as a PDP they don't care as their profit is only a consultant of works, guaranteed percentage no matter how high the prices goes.

Today however is a different story.

A fixed price has been given, and gkent full leeway in choosing the best and most efficient subcons, instead of crony linked companies.

One of the best stories is :

https://www.thesundaily.my/business/ijm-terminated-as-contractor-for-l...

Which I thought was funny when ijm got the project for 1.1 billion ( which coated around 400 million).

Now as a main contractor, the fixed negotiated sum is 16 billion.

Gkent has cut and removed the additional lines, underground stations, redesigned certain aspects, as most importantly terminated bad contracts to more cheaper ones from their China partners.

I was there at the revised meeting, and based on the new design, profit aplenty for the 16 billion cost. Quite filthy actually, reduction from 32 billion to 16 billion without the need to pay LGE any pocket money. Everyone is happy now that work has started.

Again, the advantage of an engineer who is a clerk of works versus armchair analyst.

One important piece of info, last time they had to go through certain bumi companies who would sub the job to us. Now they bypass that and hire my ex company directly. If you don't see the profit margin expansion in that sentence alone I won't bother explaining further.

Posted by Philip Greta > 2019-12-31 08:18 | Report Abuse

Calvin tan is properly deleting and reporting all of my posts which is of intellectual and not of spam nature. So shameful.

>>>>>>>

Philip Greta You must also be honest and view the share buyback and the dividend yield which is growing with every dividend I collect at 7% which is sustainable and coming from profits and retained earnings.

You throw so much money into netx which is diluting shares and using private placements to generate " cash".

But it is a company which has never made a profit, losing money every year, with no cash flow and taking investors for a ride.

You buying netx alone shows your investment philosophy which is promote, market, pump and dump on unsuspecting followers.

Your portfolio alone shows the quality of your investment.

How can anyone with 40 promised stocks in 2019 alone enter be taken seriously?
29/12/2019 5:11 PM

Posted by SHQuah > 2019-12-31 09:13 | Report Abuse

Hi Philip Greta,

Please continue provide us the latest update since you previously working in a subcon dealing with Gkent.

Posted by MCA_ > 2019-12-31 12:19 | Report Abuse

Tan Kay Hock wants to sell why ks55 never tell?

Posted by SHQuah > 2019-12-31 17:32 | Report Abuse

He won't sell with such a low price. If he really wants to sell, he will find ways to push the share price up.

Posted by oskchoon > 2019-12-31 19:29 | Report Abuse

Dear gentleman, don't worry Tan Kay Hock selling as GKent have SBB policy in place as long as QR report is profitable...

Posted by Shinnzaii > 2019-12-31 19:38 | Report Abuse

https://www.theedgemarkets.com/article/george-kent-chairman-tan-kay-hock-take-legal-action-against-author-publisher

Posted by oasischeah > 2019-12-31 21:08 | Report Abuse

May soon go below 90 sen come year 2020. January 2020 will continue to slide as buyers are sideline awaiting the Chinese New Year.

Posted by m_aloha > 2020-01-01 03:07 | Report Abuse

I’m also hoping also below 90c so that can buy more..

Posted by newbie4444 > 2020-01-01 04:00 | Report Abuse

Boss selling bec <90 sen in 2020? Boss not Najib golf-buddy?

Posted by Miz Raya Bloom > 2020-01-01 09:31 |

Post removed.Why?

Posted by SHQuah > 2020-01-01 10:28 | Report Abuse

Why keep on taking about history. Najib is over. Gkent now working with PH government and MRCB. No need to pay any unnecessary extra cost to get projects. Problem now is projects delay due to some paper work.

Posted by m_aloha > 2020-01-03 10:11 | Report Abuse

Up trend start..thanks GK

Posted by oasischeah > 2020-01-03 12:21 | Report Abuse

Just push up few cents and gradually down for many days. This is the trend on GKent. Don't get caught. CNY is coming and it will not be going up for some time.

Posted by gorengking69 > 2020-01-03 13:35 | Report Abuse

Yah dont be an idiot to not notice that. 1week push down then 1 day up. Then continue 1 week down

Posted by TillyLovers > 2020-01-03 16:43 | Report Abuse

I am happy that I managed to sell at RM. 95,haha

Posted by Philip Greta > 2020-01-06 10:01 | Report Abuse

The share buyback scheme is impressive, especially when the is no private placement warrants or esos in the horizon...

So far in the past year it has reduced net outstanding shares from 555 million to 538 million outstanding.

Paid out 32,913,000 in dividends ( from net profit of 53,067,000 sustainable earnings),

Company also has 210 million in net cash, against a 524 million market capitalization.

In terms of margin of safety this company is solid.

On top of that it has partnrrer with Honeywell on the smart water meters which has already lead to more addressable market regions, expectations within the next few years is to increase the water meter sales from 90 million revenue/22 million earnings to double that amount in the next few years.

And we are still waiting the revenue and earnings from lrt3 which has started this year.

All we need is patience.

Posted by Jack Kee > 2020-01-06 11:13 | Report Abuse

Any good news or bad news？

Posted by matrix6050 > 2020-01-06 11:55 | Report Abuse

thanks for sharing Philip Greta, good piece of information and i'm also in for Gkent.

Posted by malpac63 > 2020-01-06 17:16 | Report Abuse

In late 2018 and early 2019, they were aggressive in their share buybacks, always hundreds of thousands every day. In the last 6 months, that ability has reduced to tens of thousands, the capability of a retail investor.

My issue is still their inability to win any open tenders. Win at least one even if it's a $10m one and keep the ball rolling. Show us without your golfing buddy, you'll still competitive in the real world.

Posted by untong > 2020-01-06 20:46 | Report Abuse

Looking to sell some other shares to go into this one.
Except for LRT3, most of the projects are going to finish in year 2020.
http://www.georgekent.net/projects-reference/

If there are new jobs to be tendered or announced, this should be the year to renew some of their orderbooks. Even without new order, there are enough of meat from LRT3 project alone until year 2024. The order book size of LRT3 is much bigger than LRT extension project they got in the past.

By year 2024 i think they will be able to grow their water meter business quite abit, and most importantly, the dividends and share buyback will do no harm for holding it :)

Who knows some day in 2020 they will get rail project job from overseas or water sewerage/dam/hsr/ecrl/ptmp projects within Malaysia

Posted by SHQuah > 2020-01-07 11:30 | Report Abuse

Number of share holders reduce by almost 5% due to share buy back.

Posted by Philip Greta > 2020-01-07 14:25 | Report Abuse

How bad does a company need to be before it becomes too cheap not too buy? If you are looking for tenders, they have already won Singapore and Hong Kong tender for 3 years running. Lrt3 is a 16 billion multi year project, and even without those tenders, they are still profitable and have big earnings without the need for a golfing buddy.

Time will come.

Posted by malpac63 > 2020-01-07 14:52 | Report Abuse

I am really interested in the Singapore and Hong Kong tenders. Can you please provide a link to them? Thank you.

Posted by RainT > 2020-01-07 16:08 | Report Abuse

@shquah

u should write number of shares reduce 5% due to SBB

not number of share holders

Posted by RainT > 2020-01-07 16:09 | Report Abuse

@philip greta

the contract win in HK & Singapore is it about water meter and in the past ?

Posted by oasischeah > 2020-01-07 16:32 | Report Abuse

Market will not be good for now. After CNY , hopefully it will be better. Foreign investors are mostly out. Tommorow after the 1sen div. ex, it might be worse.

Posted by papparich > 2020-01-07 16:42 | Report Abuse

https://www.youtube.com/watch?reload=9&v=hOmlb6wK61o

Posted by m_aloha > 2020-01-07 17:40 | Report Abuse

Grab some at 920 from folks that do not want 1cent div.

Posted by TillyLovers > 2020-01-07 18:02 | Report Abuse

i hope can buy some at RM0.90 tomorrow

Posted by SHQuah > 2020-01-07 18:18 | Report Abuse

If you have just sold, please don't buy back since you have no confidence with Gkent. If you are contra player, please don't buy Gkent as we only want real long term investor that have faith with Gkent.

Posted by Philip Greta > 2020-01-07 19:56 | Report Abuse

Just as a further explanation to Jonathan choi yi kit,

Some info on the difference between pdp and turnkey contractor, the results for mrt2 should give further ideas on how much profit there will be on the table.

PETALING JAYA: The change in the terms of the contract for the MRT2 project whereby the consor­tium of MMC-Gamuda Joint Venture is to complete the works on a turnkey basis marks a shift away from the Project Delivery Partner (PDP) model that the government adopted for large projects.

MMC-Gamuda was initially awarded the PDP role in the MRT2 project in February 2014.

As a PDP, MMC-Gamuda had to ensure the project was completed on time and within the cost determined by project owner MRTCo Sdn Bhd.

In return, the PDP earns a fee of about 6% of the total project’s cost and reimbursed for some expenses incurred.

Under the turnkey model, MMC-Gamuda is the main contractor and is responsible for seeing that the project is completed and handed over to MRT Corp.

The turnkey contractor takes the construction risk and the returns are based on how well the project cost is managed and not confined to 6%.

The turnkey contractor also undertakes financing risks as it has to pay sub-contractors’ claims from the project owner later.

In the PDP model, the payment comes direct from the project owner, either MRTCo or Prasarana.

“The turnkey contractor model helps the government save money as it does not need to pay the 6% PDP fee on top of the construction cost,” said a contractor.

Posted by Philip Greta > 2020-01-07 20:03 | Report Abuse

LRT3 PROJECT FIRMLY BACK ON TRACK, COMPLETION IN FEBRUARY 2024

Friday, 23 February 2019

Kuala Lumpur
KUALA LUMPUR, 22 February – The LRT Line 3 (LRT3) project, which has been a subject of huge debate in mid-2018, is firmly back on track as it marks a major milestone today with the signing of the Novation Agreement for LRT3.
Signed between Prasarana Malaysia Berhad (Prasarana), MRCB George Kent Sdn Bhd (MRCBGK) and nine Work Package Contractors (WPCs) at Prasarana’s corporate office in Bangsar here, the novation agreement is pursuant to the Fixed Price Contract that was signed between Prasarana and MRCB-GK on January 25.

The Novation Agreement will allow the WPCs to migrate from the previous Project Delivery Partner (PDP) regime to the current Fixed Price Contract regime where MRCBGK is now the turnkey contractor while Prasarana takes the role as employer for the project.

The Fixed Price Contract for LRT3 was drawn up in line with instruction by the Ministry of Finance on 12 July 2018 to reduce the project cost to RM16.63 billion.

The signing of the landmark Novation Agreement was witnessed by Finance Minister, YB Lim Guan Eng; Transport Minister YB Loke Siew Fook and Minister of Federal Territories, Tuan Haji Khalid Abd. Samad.

Prasarana was represented by its President and Group Chief Executive Officer, Dato’ Mohamed Hazlan Mohamed Hussain while MRCBGK was represented by its LRT3 project director Patrick Hwang.

The nine companies signing the agreement today are infrastructure WPCs. They are
Mudajaya Corporation Sdn Bhd
WCT Construction Sdn Bhd
Gabungan Strategik Sdn Bhd
APEX Communications Sdn Bhd
Rahimkon Sdn Bhd
Sunway Construction Sdn Bhd
Pembinaan Jaya Zira Sdn Bhd
SN Akmida
Trans Resources Corporation (TRC) Sdn Bhd

Connecting Bandar Utama to Johan Setia in Klang, the completion date for the project under the new agreement is set for 28 February 2024.

"I would like to clarify that Prasarana only has to pay RM760 million and not RM808 million as previously reported in the media last month," said Finance Minister Lim Guan Eng at the signing of the agreement. Work amounting to RM48.6 million had been rationalised, he added.

"From that RM760 million, Prasarana has already paid MRCB-George Kent RM504 million. The remaining RM255 million will be paid to the WPCs after (today's) signing based on the terms that have been agreed on," Lim said.

Meanwhile, Prasarana president and group chief executive officer Datuk Mohamed Hazlan Mohamed Hussain explained that payments had been made following the signing of the fixed-price contract for LRT3.

Lim said RM381 million had been paid before the signing of the fixed contract agreement and RM123 million after it.

Posted by malpac63 > 2020-01-07 20:04 | Report Abuse

So the HK and Singapore winning tenders really were the water meter ones from 2017? Sigh! I thought they were new developments we didnt know about.

Posted by Philip Greta > 2020-01-07 20:23 | Report Abuse

Within the next 4 years I expect to see better resolution of assets and increasing profit margins compared to just 6% as PDP thanks to GKENT redesign and redeployment of sub contractors.

KUALA LUMPUR, July 9 — The light rail transit line 3 (LRT 3) contract worth RM1.12 billion earlier awarded to IJM Corporation Bhd has been terminated due to the project being remodelled.

The company said wholly-owned subsidiary IJM Construction Sdn Bhd (IJMC) received the notice of termination for the underground works from MRCB George Kent Sdn Bhd (MRCB-GK) yesterday.

“The termination was due to the project being remodelled from a project delivery partnership model to a fixed price contract model pursuant to the direction of the government. The new contractual framework has resulted in MRCB-GK’s employment as the project delivery partner (PDP) under the PDP agreement with Prasarana Malaysia Bhd being terminated.

What does this remodeling tell you? Prices must come down and all government cronies must go.

And the best news? Gkent can do as they see fit without relying on feeding any political groups.

If they complete lrt3 project in time and on budget by 2024, they will increase the reputation and name of gkent ( as well as PH as shrewd negotiators and costs reducers reducing project costs from 32 billion to 16 billion). They will get good background and skills in dealing with a MEGA project that NEEDS TO BE COMPLETED BY 2024.

That is why unlike many investors I do not wish for them to secure more projects that they are unable to complete as they already have their PLATE full as a main contractor with a 16 BILLION DOLLAR PROJECT.

For a company with market cap 500 million which is smaller than many major companies like gamuda, this project is already big enough that I wish them all the best, focus on completing the project as efficiently as possible, build that brownie points with the new government to show they are better than the old one, and grow from there. The rewards are already on the table.

Why hunt for more?

Posted by Philip Greta > 2020-01-07 20:32 | Report Abuse

For any other company, if:

The company has a 4 year major project worth 16 billion order book guaranteed by the government of Malaysia, with expected EARNINGS double market cap.
Pays a dividend of 7%
Bought back 5% of NOSH
Has a nett cash position of 210 million
Has international exposure project wins in Singapore and Hong Kong versus international competitors

You would give it a high multiple. But because it is assumed that they are ex golfing buddies with najib and the share price has dropped from the high of rm4 you assume the worse of gkent.

But hasn't Lim Guan Eng and Anthony loke signed a Novation agreement? Would golfing buddies ( like IJM) have received major government contracts? No?

So what is the problem then?

At what point does the limits of negativism become obvious?

Posted by Philip Greta > 2020-01-07 20:41 | Report Abuse

In Howard marks mastering the market cycle, the question gets asked:

At what point does pessimism become absurd? When the horror story become overdone?

In times of extreme risk aversion, it will cause prices to be as low as they can go and no further, this the risk of loss to be minimal. The riskiest thing is to believe there is no such thing as risk, by the same token the best time to buy is when everyone is convinced there is no hope.

The point is this. In a negative environment, excessive risk aversion can cause people to subject investments to unreasonable scrutiny and endless negative assumptions.... At just the right time when they should be worrying about missing out on great opportunities.

Posted by malpac63 > 2020-01-07 20:55 | Report Abuse

My point is LRT3, SBB, bank balances all are old news. Gkent didn't suddenly collapse. It has been systematically sold down in the last 12 months from 1.38 to 0.92 as its fail to offer shareholders anything new post LRT3. Even with LRT3 profits coming, a lot are waiting for the opportunity to exit the door. UNLESS of course you know what, we also have A B And C supplementing our profits. Water meters alone arent gonna cut it.

Posted by malpac63 > 2020-01-07 21:07 | Report Abuse

Shareholders want to invest in a Mini-Gamuda, not a water meter company with a LRT3 project.

Posted by SHQuah > 2020-01-07 21:37 | Report Abuse

Malpac63, .....i think you better sell all your Gkent share so that you don't have to worry so much. If you don't even have any, Then you don't have to worry about us. We know what we want.

Posted by malpac63 > 2020-01-07 21:51 | Report Abuse

Maybe a more concrete response could have been the RTS is up for review in a few months time. HSR maybe scheduled back on track too and TKH did mentioned in the last quarter report they were actively on the lookout for tenders in neighbouring countries. MRT3 may also be on the horizon.

Posted by Philip Greta > 2020-01-08 08:13 | Report Abuse

Malpac63 doesn't have any shares in gkent. He is obviously risk adverse on gkent due to "old news". The fact of the matter is, gkent share price is beaten down to a low price due to the fact of najib golfing buddy rumours ( despite them bidding transparently on the lrt3 revert with them neither being the cheapest or the most expensive, just with the most complete solution). It is also beaten down with "old news" of lrt3 deployment delays and possible cancellation due to overpriced budget ( before the new government novation agreement).

The question now is: once you factor in the old news, is gkent now currently undervalued or fully valued at 500 million ( lrt3 16 billion, net cash 210 million, positive earnings yearly to pay dividend of 7%).

Unlike many government crony which are unable to stand without government projects, gkent has water meter business on top of rail contract.

And the fact is they have a huge rail contract worth 16 billion which is more than many major companies in Bursa order book.

Guaranteed payment.

Undervalued or overpriced? At 7% sustainable dividends, you make the choice.

Posted by Philip Greta > 2020-01-08 08:15 | Report Abuse

Why do you mean it isn't going to cut it? So when the price goes up to rm2, suddenly it cuts it?

I am reminded of investors who won't touch anything .com related when it crashed, but were able to believe any story during its heyday.

Perception is everything.

Luckily, I have financials to meet the images.

Posted by stockraider > 2020-01-08 08:52 | Report Abuse

PHILIP GOT CONNED BY GKENT BOSS LOH....!!

WHAT DO U EXPECT TO HEAR FROM INSIDER LEH ??
NO GOOD DON BUY BUSINESS IS BAD MEH ??

THEY WILL TELL U VELI GOOD LOH.....!!
EVERYTHING IS FINE MAH....!!

Posted by malpac63 > 2020-01-08 09:49 | Report Abuse

Philip is good. He argues his case with facts and not personal banter. No point having a 'syok sendiri' forum and the share price keeps declining.

Posted by malpac63 > 2020-01-08 09:50 | Report Abuse

That's why this very second, we have buyers at 0.905 and sellere ar 0.91. They have a difference in opinion.

Posted by oasischeah > 2020-01-08 11:07 | Report Abuse

Below 90 sen now. Everyday new low.

Posted by popo92 > 2020-01-08 12:01 | Report Abuse

You won’t be disappointed taking advantage from gkent horror stories

Posted by SHQuah > 2020-01-08 12:37 | Report Abuse

Down due to middle East WAR. Only oil stocks up.

Posted by RainT > 2020-01-08 14:41 | Report Abuse

Oil stocks also down

War in Iran what relate with GKENT ?

Now again KLSE sentiment turn bad