Posted by MasterYoda > 2020-01-30 11:25 | Report Abuse

Master Philip any opinion regarding the rumors that G Kent is a UMNO counter,just worried for this part before buying.Thanks in advance!

Posted by Philip (Can I advise you?) > 2020-01-30 11:41 | Report Abuse

Hi master Yoda, I was also thinking that, however, if gkent was a umno counter, how did they get LRT3 from lim Guan eng? Thanks in advance.

Posted by Philip (Can I advise you?) > 2020-01-30 11:42 | Report Abuse

And a 250k share buy back at low prices is an excellent use of shareholder equity.

Posted by Gala Kat > 2020-01-30 11:54 | Report Abuse

Looks like Gkent is back to meter reading .. now that golfing buddy>Jibby is being grilled for corruption and abuse of power...

Posted by RainT > 2020-01-30 11:56 | Report Abuse

no la

there is not UMNO member in this company

how to say GKENT is UMNO counter le

unlike MYEG, really have UMNO member as the shareholders or directors

but GKENT is none of this

all the rumuors of gold buddy to Najib then GKENT get projects is indirectly only

Posted by RainT > 2020-01-30 11:57 | Report Abuse

to say a company is a UMNO counter,

need to have directors or shareholders who is from UMNO

gkent have these or not ah ????

Posted by Mythical > 2020-01-30 12:07 | Report Abuse

Philip (Can I advise you?) And a 250k share buy back at low prices is an excellent use of shareholder equity.
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I remember you bought with margin facilities. Do you get margin call?

Posted by MasterYoda > 2020-01-30 12:13 | Report Abuse

ok ty all,i will invest in this counter since the price is quite attractive now.

Posted by MasterYoda > 2020-01-30 12:14 | Report Abuse

pchem and muhibbah also looking very attractive,on my radar now :)

Posted by malpac63 > 2020-01-30 12:25 | Report Abuse

The LRT3 contract was initially cancelled by PH and LGE. However, after discovering the compensation cost from the cancellation was astronomical, they reawarded it back to Gkent/Mrcb with changes to it. If the compensation clause wasn't there, it'll be a different story altogether.

Posted by malpac63 > 2020-01-30 12:35 | Report Abuse

However, I do reckon the current valuations are quite attractive.

Posted by SHQuah > 2020-01-30 13:32 | Report Abuse

Actually Philip (Can I advise you?) got the points.
At least until 2024, Gkent still got a lot of projects to complete. So another 4 years to go. long way to go.

Posted by ChickyWaWa > 2020-01-30 15:15 | Report Abuse

0.885...

Posted by v1vin > 2020-01-30 15:24 | Report Abuse

? why suddenly jump

Posted by Grace Loh > 2020-01-30 15:27 | Report Abuse

hopefully not a one day show

Posted by ChickyWaWa > 2020-01-30 15:35 | Report Abuse

Steam out... no fun

Posted by Philip (Can I advise you?) > 2020-01-30 15:37 | Report Abuse

Hi malpac63, can you specify what compensation clause and hotter much does it amount to? Where did you get this news? As the were multiple other contractors that had the contracts cancelled by government with no compensation clause. Case in point: IJM.

>>>>>>>>>

malpac63 The LRT3 contract was initially cancelled by PH and LGE. However, after discovering the compensation cost from the cancellation was astronomical, they reawarded it back to Gkent/Mrcb with changes to it. If the compensation clause wasn't there, it'll be a different story altogether.
30/01/2020 12:25 PM

Posted by Philip (Can I advise you?) > 2020-01-30 15:39 | Report Abuse

My total exposure with Maybank is my topglove and ql position. My margin into gkent is a small portion of my exposure. I could lose my entire position in GKENT and still not get margin call.

>>>>>>>>>
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I remember you bought with margin facilities. Do you get margin call?
30/01/2020 12:07 PM

Posted by oasischeah > 2020-01-30 15:42 | Report Abuse

Like many previous moments, it will rise few sens and will go back down for many daysssssssss. This is the trend of GKent.

Posted by SHQuah > 2020-01-30 17:35 | Report Abuse

Market will recover once Wuhan virus over. So take this opportunity to buy cheap.

Posted by ChickyWaWa > 2020-01-30 17:41 | Report Abuse

No wonder price increased so much la.... 311k SBB

Posted by malpac63 > 2020-01-30 18:32 | Report Abuse

Philip, Aug 2018 LGE announced in Dewan Rakyat a full contract termination of LRT3 will cost the government $4.2b in compensation cost.

Oct 2018 PH confirmed the go ahead of LRT3 but at almost half its original price, from $31.65b to the current $16.6b. The implementation concept of the project will also change from PDP to a fixed price contract regime.

TKH would have preferred the $4 2b payout in which gkent pockets half.

Posted by SHQuah > 2020-01-30 18:38 | Report Abuse

Another big SBB until 87.5

Posted by SHQuah > 2020-01-30 18:41 | Report Abuse

Malpac63..... Projects cost cut, Projects size also cut and simplify with less stations. Maybe from 5 stars to 3 Stars. So still win win.

Posted by malpac63 > 2020-01-30 18:46 | Report Abuse

SHQuah, you are right again. However, poject cost cut in almost half and PDP to fixed price cuts the fatty meat out and what's left are the lean trimmings. Still money to be made but no longer the good old days.

Posted by malpac63 > 2020-01-30 18:50 | Report Abuse

Maybe they are reading the comments here when I mentioned previously the SBB of 20k and 30k daily are an insult to the minority shareholders.

Posted by Philip (Can I advise you?) > 2020-01-30 18:59 | Report Abuse

I see. So you believe that a company which earns 6% PDP from 31.65b if cancelled they would get a 4.2b payout? Meaning they would get a cancellation compensation far more then their agreed PDP contract? I find that hard to believe, especially since if the government can revise the prices of a contract value, they can also fix price a new contract to make it unprofitable for anyone taking it ( forcing them to reject the new deal and demand continuation of the old contract or compensate).

In any case, believe what you will. I choose to believe lrt3 is going to be profitable for GKENT. More importantly ( since I have actually been to their office and discussed technical design with their team previously), I choose to believe that their "inability" to grab new projects is more a case of them having too much on their plate already to swallow thus concentrating of successful completion first,( showing prudent management to complete ORDERBOOK of 11 billion LRT3 works, 1 billion mrt2 works, and water meter orders outstripping supply) rather than being on the "blacklist" of PH government contracts.

If you believe the price of gkent today reflects it's future earnings... I invite you to visit this forum 4 years from now when they hand over LRT3 and see how much the shares are with then. That is all I can say. At this point of time anyone can say whatever analysis they want. It is only the future will define whether or their analysis comes true.

Posted by malpac63 > 2020-01-30 19:15 | Report Abuse

It cant be too much on their plate. When their share price was at $4, they had the inflated $31b LRT3, bidding for the $40b MRT3 and for HSR as well.

I am interested in the uncompleted $1b MRT2 works you mentioned. Where can I find this information?

Posted by malpac63 > 2020-01-30 19:30 | Report Abuse

Maybe I am wrong but my recollection MRT2 is constructed by MMC/Gamuda.

Posted by pamaladu > 2020-01-31 07:35 | Report Abuse

https://www.nst.com.my/news/2016/08/167965/cccc-george-kent-jv-wins-rm101b-work-package-mrt-sungai-buloh-serdang-putrajaya

Posted by v1vin > 2020-01-31 09:59 | Report Abuse

@pamaladu , bro 4 years ago news

Posted by Philip (Can I advise you?) > 2020-01-31 10:35 | Report Abuse

http://www.georgekent.net/projects-reference/

It is package ssy2014. The NSC for track rail systems is GKENT. The entire package was reduced by 3.4 billion which is not affecting gkent tender won which is 1 billion to be delivered in 2022.

Posted by Philip (Can I advise you?) > 2020-01-31 10:36 | Report Abuse

Current progress 41 percent of entire package, gkent claim will come in at 70% completeness for m&e

Posted by SHQuah > 2020-01-31 10:57 | Report Abuse

Philip (can I advise you?).......Will Gkent be getting partial payment this coming quarter ?

Posted by oasischeah > 2020-01-31 11:42 | Report Abuse

As expected - Go up few sen and keep going down for many days. Who keeps pushing the price down?

Posted by ChickyWaWa > 2020-01-31 12:03 | Report Abuse

If SBB today exceeds 200k shares, may be can hold on 0.87. If SBB lesser than 200k shares, bye bye.

Posted by Philip (Can I advise you?) > 2020-01-31 12:16 | Report Abuse

Bye bye chickywawa. Last 3 days 800k shares off the market into treasury. How many companies doing aggressive buyback of 25 million last year, 5% of market cap, with dividends every year and a 50% earnings payment, retained earnings and no record of losses in the past few years. If this kind of company is still a bad deal to invest in I don't know what kind of companies will make you invest in the market. And a 11.4 lrt3 and 1b mrt2 orderbook by Malaysian government on the books.

Posted by pamaladu > 2020-01-31 13:12 | Report Abuse

GK revenue peaked in FY18 & FY17 each year roughly gross RM600mil @ EPS 0.26 @ div 0.10. Their order book that time only around RM2bil with hospital and LRT extension excluding LRT3. Order book now RM6bil (after divided half for JV)

Posted by Philip (Can I advise you?) > 2020-01-31 13:24 | Report Abuse

You still have hospital not yet complete 70% 2020 hand over endokrin and 2021 the other hospital. MRT2 1 billion 2022 handover, 2024 handover lrt3 5.7b. I don't believe they can only do 40 million a year earnings for the next 5 years with this kind of orderbook, and share buyback only increases long term shareholder profit.

Posted by pamaladu > 2020-01-31 13:29 | Report Abuse

Exactly, usually for hospital projects they get most of the revenue toward the end because of the medical equipment and fittings.

Posted by SHQuah > 2020-01-31 14:48 | Report Abuse

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3010323

Second Interim Single-tier dividend of 1.0 sen per ordinary share
Payment Date 05 Feb 2020

Waiting to use Dividend money to buy more.

Posted by Choivo Capital > 2020-01-31 17:20 | Report Abuse

Well, at this price, not much can go wrong anyway.

I guess this will be the second stock i have in common with phillip. Hahahaha

Posted by pamaladu > 2020-01-31 17:42 | Report Abuse

most important know why you are buying

Posted by SHQuah > 2020-01-31 18:05 | Report Abuse

Today share buy back record high 1,660 k units , now treasury holding 5.24%. meaning less & less shares in open market. Maximum can buy back until 10%.

Posted by GrahamNewman > 2020-01-31 18:38 | Report Abuse

Management that knows the intrinsic value of the company and shareholder minded enough to buy back when price is below intrinsic value. I don't think this is common even in the US, let alone Malaysia.

Posted by Philip (Can I advise you?) > 2020-01-31 19:07 | Report Abuse

Yes, many companies do share buyback when the price is high, or conserve cash during bad times. For gkent to do cash buyback and dividends during trying times show them either doing something funny ( which I find hard to believe when there is no esos, warrants, private placements or debt raising), or good management doing the prudent thing for investors by buying back shares at low prices, getting big orders 12 billion orderbook versus 487 market cap, and having a good cash level with no debt. Why worry much?

When the entire Bursa market is becoming irrational due to China trade war and China Wuhan virus, it becomes even more important to know what businesses have a structural problem and what businesses are just having a temporary discount day.

Posted by SHQuah > 2020-01-31 19:27 | Report Abuse

Share buy back killing a lot of weak share holders and contra players.

Posted by KassimBaba7 > 2020-01-31 19:30 | Report Abuse

LOL.. Share buyback bought back from itself alright :D

Ayam luckly contra from 0.815 - 0.835... Sayang should have waited till close :D

Share buyback shd be a bit less aggressive le... tomorrow surely babis will try to sell again.. 0.84 was my collecting price :(

Posted by RainT > 2020-02-01 12:34 | Report Abuse

have been on share buy back mode for few months

but share price also fall since then

Posted by RainT > 2020-02-01 12:34 | Report Abuse

SBB is failed to sustain the share price