Posted by Sslee > 2020-05-05 18:13 | Report Abuse

haha Philip,
4QFY20 (Jan) core earnings of MYR6.8m (-34% QoQ, -73% YoY), bringing FY20 core earnings to MYR41.6m (-52.6% YoY). No dividends were declared.

Is this good result?

• FY19 net profit fell 53% YoY on the back of shrinking construction orderbook, narrowing margins and minimal contribution from its LRT 3 JV project. The seasonally stronger 4Q was absent in FY20, with 4QFY20 EBIT only contributing 18% to full-year EBIT (4Q for FY17-FY19 contributed an average of 41% of full-year EBIT). The engineering segment recorded revenue of MYR52m in 4QFY20 (+31% QoQ, -35% YoY) on the back of higher construction activities as compared to the previous quarter, while the water meter segment weakened by 8% QoQ (-8% YoY). Construction EBIT margin more than halved YoY in 4QFY20 to 23.4% (FY19: 54%), while the water meter manufacturing segment saw improvement of 3.6ppts to 19%.

• We expect core earnings to grow 10% and 13% YoY during FY21F-FY22F from a low base, premised on our house view for the COVID-19 pandemic to be broadly contained in 1H20, with activities expected to gradually recover thereafter. In our opinion, growth could be driven by the resumption of contribution from the LRT3 JV project and additional booking of 80,000 and 100,000 smart water meter connections for FY21F-FY22F (from 140,000 connections). However, we expect growth to be dampened by the smaller outstanding construction orders and weaker expectation for its water meter manufacturing segment for FY21F.

Posted by SHQuah > 2020-05-05 19:33 | Report Abuse

Gkent can still making profit during such a bad time. A lot big company like G3 & Gpacket losing a lot of money share price still so high.

Posted by v1vin > 2020-05-05 23:13 | Report Abuse

go go go shot up back to RM1

Posted by jonbravo > 2020-05-06 10:11 | Report Abuse

Correction. Add and buy

Posted by RainT > 2020-05-06 10:50 | Report Abuse

meow

Posted by Philip ( buy what you understand) > 2020-05-06 11:03 | Report Abuse

You do not consider this a good result? MCO extension means extended handover period for lrt3.

I will let you have a good guess, how much is the profit margin for a smart meter? Multiple that by 100,000. For every ten ringgit of profit, they will make 1 million in earnings.

For the elster Kent smart meter, the price range from DN sizes, with pricess between 200 USD for small household pipesize, to USD 800 for the larger inlet and outlet Size. My estimate is in the mid term when everything starts to be updated too more accurate smart meter design, we will be looking to rm50 additional profit per smart meter in the short term, and 1 million smart meters per year. Their production capacity is 2.5 million meters ( brass volumetric).

>>>>>>>>>

• We expect core earnings to grow 10% and 13% YoY during FY21F-FY22F from a low base, premised on our house view for the COVID-19 pandemic to be broadly contained in 1H20, with activities expected to gradually recover thereafter. In our opinion, growth could be driven by the resumption of contribution from the LRT3 JV project and additional booking of 80,000 and 100,000 smart water meter connections for FY21F-FY22F (from 140,000 connections). However, we expect growth to be dampened by the smaller outstanding construction orders and weaker expectation for its water meter manufacturing segment for FY21F.
05/05/2020 6:13 PM

Posted by mf > 2020-05-06 11:04 | Report Abuse

PKP
India dijangka import semula minyak sawit Malaysia
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KUALA LUMPUR: India kelihatannya tidak mempunyai banyak pilihan dan dijangka kembali semula mengimport minyak sawit dari Malaysia, terutama sekiranya situasi pandemik COVID-19 di Indonesia semakin memburuk.

Posted by Sslee > 2020-05-06 12:00 | Report Abuse

Haha,
Philip forgets that 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.

So MCO extension means extended handover period for lrt3 is good news? Who going to pay for subcons and Gkent fixed cost? Will further delay eat into profit margin of 10%? Or cause severe cost overrun?

For the elster Kent smart meter, the price range from DN sizes, with pricess between 200 USD for small household pipesize, to USD 800 for the larger inlet and outlet Size.
So can a household afford a USD 200 water meter? Who will maintain it and pay for it?

Posted by SHQuah > 2020-05-06 14:24 | Report Abuse

Sslee......just sell all your Gkent shares and no need to worry so much.

Posted by dawchok > 2020-05-06 14:39 | Report Abuse

Having debate from two sides will be more reflective to the actual situation. I appreciate and thks for all arguments.

Posted by paktua73 > 2020-05-06 16:26 | Report Abuse

ihik ihik paktua love to make trouble here..
as long great fa sifu Philip still around..

tut tut
suka suka good sifu

Posted by Alex™ > 2020-05-06 19:54 | Report Abuse

Hehe ah pek

Tut tut

Posted by Philip ( buy what you understand) > 2020-05-08 07:21 | Report Abuse

Sslee, smart meter has many types. Please read up of non revenue water ( nrw) before commenting. Household systems are still using volumetric which is monopolised by GKENT. The upstream monitoring with smart meter purpose is to save money for utility which is a direct return of cost employed for them.


https://en.m.wikipedia.org/wiki/Non-revenue_water

Here I simplify for you.

FYI you do not seem to understand GKENT business model. I think if you have not noticed yet, unlike those China companies which is paid per month, subcon is paid by milestone which is progress completion.

If progress done, submit for claim.

Maybe you should go back to trying out INSAS products and services first before deciding if you want to sell INSAS to buy GKENT.

My advice, please don't invest in GKENT. Most likely, the moment you buy the share price will drop. And the moment you sell the shares price will jump 20%.

But maybe if you can write some nice article about INSAS future prospects and earnings clarity icon8888 300 million earnings to JAKS every year, I can consider.
>>>>>>>>

So can a household afford a USD 200 water meter? Who will maintain it and pay for it?
06/05/2020 12:00 PM

Posted by Sslee > 2020-05-08 08:05 | Report Abuse

Good morning Philip,
Thank you for reminded me that the moment I buy Gkent the share price will drop. So today I will buy 1 lot and see whether the share price will drop.
And tomorrow I will sell Gkent so that the share price can jump 20%.

Posted by mf > 2020-05-08 08:06 | Report Abuse

Asia stocks set to trade higher as Nasdaq turns positive for 2020

Posted by Zachdragon > 2020-05-08 15:38 | Report Abuse

was there a reason why this stock dropped sharply after the 2018 GE?

Posted by i3lurker > 2020-05-08 15:49 | Report Abuse

inferior share

today so many green and index is green but GKent is red.

Posted by dawchok > 2020-05-08 15:53 | Report Abuse

The only reason that this stock dropped sharply after the 2018 GE is no more JibGor as PM who is also Golf buddy of boss of GK. Consequently the very profitable Engineering(Construction) biz which is the catalyst for the GK's price rally in 2017-2018 vapors immediately and so the beautiful rally of GK. Profit from water meter biz is not lucrative to justify RM2-RM3 for GK.

Posted by malpac63 > 2020-05-09 13:19 | Report Abuse

Been almost 5 months since I was last here. Again, my concern is exactly the same as expressed by the both the IB. Excluding LRT3, the projects in hand amount to $300m and no new wins since GE 2018. The GK management must be half asleep as they have not enlighten the IB they have multi billion contracts exclude LRT3 and dont deserve a SELL at 50 sen call.

Posted by RainT > 2020-05-09 16:54 | Report Abuse

Meow...

Posted by alvin5588 > 2020-05-10 08:16 | Report Abuse

Still lack of power..

Posted by SHQuah > 2020-05-10 12:34 | Report Abuse

A lot of retirees depends on dividend to survive. Gkent used to be a good dividend stock. But now look like we can't depend on. Maybe Gkent should stop SBB and use the money for dividend.

Posted by Sslee > 2020-05-10 13:53 | Report Abuse

Dear SHQuah,
You have my support to ask TSD Tan during AGM to stop wasting company money on SBB but to use the money to pay dividend so that smart investor like Philip able to use the dividend to collect more Gkent.

Please also ask TSD Tan if he like Gkent so much please use his own money to push up Gkent share price. A win win solution for all.

Thank you

Posted by oasischeah > 2020-05-11 13:23 | Report Abuse

SBB is a brilliant move. Have confidence. GKent will reward us later.

Posted by uniteen > 2020-05-12 09:25 | Report Abuse

what does SBB stand for?

Posted by Matcha Green Tea > 2020-05-12 11:08 | Report Abuse

SBB - Share Buyback; Companies spend the excess cash to repurchase stocks;

E.g. Company has 1000 unit shares outstanding (NOSH), buy back 100 unit, NOSH becomes 900 unit (If they cancel the bought shares)

EPS and dividend will be higher if you hold 1 unit out of 900 than out of 1000 units.

Posted by uniteen > 2020-05-12 11:19 | Report Abuse

thanks for the explanation matchagreentea.

Posted by SHQuah > 2020-05-13 17:46 | Report Abuse

Don't know have to hold for how long ? 2 years or 5 years ? But how many 10 years do we have ?

Posted by RainT > 2020-05-13 18:16 | Report Abuse

meow...

Posted by sell > 2020-05-14 03:41 | Report Abuse

TP 50 sen nobody tell?

Posted by SHQuah > 2020-05-14 07:29 | Report Abuse

P&L is not as good as before. But balance sheet is still very good and strong. Net tangible Assets 92.56 cents.

Posted by v1vin > 2020-05-14 11:35 | Report Abuse

privatize aje, market already lose interest in this stock no momemtum and oversold, unless there is stimulus project / revenue but doesn't seem there would be any in near future

Posted by uniteen > 2020-05-14 11:55 | Report Abuse

let's say they privatise, what happens to the shares that investors are holding?

Posted by Philip ( buy what you understand) > 2020-05-14 14:04 | Report Abuse

If you are receiving 6% dividend every year to hold with SBB, I don't see any problem buying it cheap in the short term and enjoying the long term profits.

If you really want to count here is the timeline:

2021 - MRT2 trail system contract 1 billion,
2023 - honey well new smart meter contract
2024 - Lrt3 contract
2025- to monitor onwards

>>>>>>>>>>

HQuah Don't know have to hold for how long ? 2 years or 5 years ? But how many 10 years do we have ?
13/05/2020 5:46 PM

Posted by Philip ( buy what you understand) > 2020-05-14 14:43 | Report Abuse

If you are receiving 6% dividend every year to hold with SBB, I don't see any problem buying it cheap in the short term and enjoying the long term profits.

If you really want to count here is the timeline:

2020 - final progress claim for hospitals and vo work for lrt
2021 - MRT2 trail system contract 1 billion,
2023 - Honeywell smart water meter technology transfer water meter earnings guidance 50%
2024 - Lrt3 completion and profit

So, we have clear orderbook for the next 5 years of more than 7 billion to gkent.

Patience is the key.

But when it comes time to buy, will you want to?

>>>>>>>>>>

HQuah Don't know have to hold for how long ? 2 years or 5 years ? But how many 10 years do we have ?
13/05/2020 5:46 PM

Posted by SHQuah > 2020-05-15 07:31 | Report Abuse

Still holding with paper loss more than half a million. Use to getting good dividend. Hopefully can recover next year and continue giving dividend.

Posted by mf > 2020-05-15 07:35 | Report Abuse

COVID-19: Jumlah kematian meningkat 301,000 kes
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WASHINGTON: Jumlah kematian akibat COVID-19 di seluruh dunia terus meningkat sebanyak 6,000 kes dalam tempoh 24 jam.

Jumlah keseluruhan yang maut akibat wabak itu yang kini merebak ke lebih 190 negara di seluruh dunia melepasi angka 301,000 kes.

Posted by Philip ( buy what you understand) > 2020-05-15 12:30 | Report Abuse

I can understand how you feel, I was also more than 1 million paper loss, but having the conviction in GKENT and buying 4 million of shares in march when the price dropped below 50 cents gave me the confidence to average down.

https://klse.i3investor.com/servlets/pfs/120720.jsp
>>>>>>>


SHQuah Still holding with paper loss more than half a million. Use to getting good dividend. Hopefully can recover next year and continue giving dividend.
15/05/2020 7:31 AM

Posted by RainT > 2020-05-15 12:37 | Report Abuse

@philip

why u can always change your user name & still using old account in i3 investor?

Posted by Philip ( buy what you understand) > 2020-05-15 12:40 | Report Abuse

I don't know. Did you validate your account? I am only changing my last name in the selection tool.

>>>>>>>>

Posted by RainT > May 15, 2020 12:37 PM | Report Abuse

@philip

why u can always change your user name & still using old account in i3 investor?

Posted by K-Den > 2020-05-15 16:35 | Report Abuse

u all really big kaki, I paper loss on gkent about rm150k also beh tong dy. I am not the only one, let's cheers

Posted by super_newbie > 2020-05-15 20:40 | Report Abuse

unlimited SBB

Posted by Philip ( buy what you understand) > 2020-05-17 15:00 | Report Abuse

https://klse.i3investor.com/blogs/phillipinvesting/2020-05-17-story-h1507085013-Sharing_investment_journey_of_Ian_Yoong_HNW_private_equity_investor_and.jsp

Posted by amytrojan > 2020-05-18 11:05 | Report Abuse

Bought Gkent last friday too kikikiki

Posted by liegelord > 2020-05-18 11:28 | Report Abuse

Something that i have been following for many months...


Probably it is time now,

Posted by amytrojan > 2020-05-18 14:42 | Report Abuse

GENM is also building monorail o...but in Miami US

Posted by jonbravo > 2020-05-18 17:19 | Report Abuse

Already said this stock sure win wan

Posted by dawchok > 2020-05-18 17:45 | Report Abuse

Jib Gor said he want to conclude his court case this year so that he can look for UNNO president new year, then PM in another 1-2 year. If his plan goes as he wishes, GKent will "kaya" again with MRT 4 and 5 and n.

Posted by mf > 2020-05-18 17:46 | Report Abuse

Dow futures jump nearly 300 points, rebounding from last week's losses

Posted by jonbravo > 2020-05-18 21:46 | Report Abuse

together we will win buying this stock