Posted by pamaladu > 2021-05-24 20:30 | Report Abuse

it appears the deadlock on the issue of shareholding funding is intentional so that now one of the JV party has the option to take over completely. Whether GK takeover or sell its share, either is still good news. If takeover, then have the entire share but of course higher risk. prefer for GK to let go so that can take their half share which is risk free at DCF basis.

Posted by getingreal > 2021-05-24 23:47 | Report Abuse

As I read it MRCB has to make an offer to buy out GKs shares. The catch 22 is that the price they offer they must sell at if GK chooses not to sell and to buy MRCB at that same price.

I'm sure GK will want to buy out MRCB. I also quite sure GK can tap lots of big boy partners that they have been working happily with for many years on other projects. Such companies as Sunway or Gamuda to name a couple that would jump at the chance to come in with GK to compete the LRT-3 project.

As I see it MRCB is now between a rock and a hard place.

MRCBs expertise is Civil and Structural not the complex Systems which is GKs area of expertise. MRCB may think they know it all, but they have never done Systems in such a project, just Civil and Structural. Throw a rock and you will hit a Civil and Structural contractor!

GK has successfully competed MRT-2 Systems top to bottom, Turn Key! I cant think of any other home grown Malaysian company that's done that.

Interesting times!

Posted by OldWiseMan100 > 2021-05-24 23:57 | Report Abuse

What do you meant by complete system? including the trains and software? what system?

Posted by Cockroach Paul Lee > 2021-05-24 23:57 | Report Abuse

Wowowow... gkent vs mrcb .... round 1 , fight !
Buy tickets,follow . Haha

Posted by pamaladu > 2021-05-25 00:30 | Report Abuse

GK already standby RM500mil sukuk. guess the arbitration was to buy time for this arrangement

Posted by ming > 2021-05-25 02:11 | Report Abuse

Bossku takda.. susah nak fight

Posted by pamaladu > 2021-05-25 06:53 | Report Abuse

@gentingreal.

https://en.wikipedia.org/wiki/Deadlock_provision

Russian roulette. A draconian solution to a deadlock, a Russian roulette provision requires one of the two deadlocked parties to serve a notice on the other party, and the serving party will name an all-cash price at which it values a half interest in the business. The party receiving the notice then has the option to either buy the other party out, or sell out to the other party, at that price.

https://www.lrt3.com.my/overall-linewide-progress/
The progress is 51%++ now. By the time offer is made (4 months sometimes in September), the progress will be around 60%++, the foundation and structure the most difficult part would have completed. The remaining works will be mostly rails, system and M&E works which are easier for GK. With the RM500mil sukuk, if the offer is low price, GK can buy the half share to complete the remaining works. If the offer is good, GK can sell and we get special dividend!

Posted by getingreal > 2021-05-25 14:45 | Report Abuse

Don't forget its shares in the Company and Prasarana is a bad paymaster many many months behind in payments that will go to the company and thus whoever gets ownership.

Posted by getingreal > 2021-05-25 15:06 | Report Abuse

Oldwiseman in answer to your questions, the Systems includes all the software and the control systems for the operation and control of the trains. The software on the trains was supplied by GK and installation into the trains was done in China and Malaysia supervised by GK.
Systems also included; all electrical supply and installations, control room systems and all associated software and hardware (in LRT-2s case even the Control center building was built and supplied by GK). All software, checkpoints and interfacing for the safe running of the trains. It also included lightening protection systems, station hardware and interface (such as station monitors lighting and speaker systems). In LRT-2s case GK supplied and installed all main equipment for maintaining and testing systems and the trains including the special in floor jacks which lift the whole train. In Lrt-2s case GK also supplied and built the tracks and switchgear. Basically everything other than the basic civil and structural.
And no, Trains are not Systems. When I say supplied and built I mean it was included in GKs PDP contract as such GKs works.

Posted by eesquare > 2021-05-25 16:00 | Report Abuse

@gettingreal Are you in the rail/rolling stock industry? As per my understanding, Gk's is more like a project manager, they hire specialist sub-cons for all their rail works. None of those works are done in-house. They basically sub out those jobs. So, whoever takes over and just hire those specialists again like CRCC, Bombadier, Siemens and etc. Yeah?

Posted by getingreal > 2021-05-25 16:34 | Report Abuse

No I'm not a rail or rolling stock person. All the info is available on line.
You are right to a degree GK works with its many foreign and local contractors, but its GKs roll to do all the planning and design work then contract the many contractors to provide an homogenous design and installation.
GK has to integrate all the works, supervise the on time deliveries, installations, integrations. To do all this they have a team of on staff specialist engineers hired from all over the world. GK had over 120 full time staff of its own and engaged many many contractors.
Like all big contractors (Civil and structural included) they work with an large number of specialist sub cons. At the end of the day its GK that has to deliver on time and on budget. Its a huge and very complex task. One screw up, by one small contractor and the whole project cannot work.
You can imagine if your turn key building a house, their are many sub cons. If the windows guy fails to deliver on time and to the right speciation, the contract fails. In the house case easy, just get another windows guy from down the road. But in LRT there are maybe only two or three contractors in the world, and each with their own designs and specs, one may be in France one in Germany and one in Canada, and its near impossible to get their different designs to integrate instead after design close. Not as easy and putting a brown window in by Joe instead of a grey one by Harry. As I said looks easy, just hire subbies you say... but not so easy.
Prasarana contracts GK to do all this and to contract with the many suppliers. Its GKs responsibility to ensure design, integration and delivery on time and on budget, a complete system that's safe and works reliably.

Posted by eesquare > 2021-05-25 16:55 | Report Abuse

@Gettingreal Thanks for sharing, I understand your point.

Posted by MiaoMiao7 > 2021-05-25 18:02 | Report Abuse

Getingreal

Sounds like you works for gkent or part of their team.

Posted by getingreal > 2021-05-26 13:16 | Report Abuse

Haha I don't but know someone that does.

Posted by stockraider > 2021-05-27 08:26 |

Post removed.Why?

Posted by pamaladu > 2021-05-27 08:26 | Report Abuse

maybe arbitration and breach intentional to delay the activation of deadlock? balance of works more manageable and extra RM500mil sukuk ready to take over.

nobody disturbing now
https://www.theedgemarkets.com/article/tajuddin-has-been-sacked-prasarana-chairman

Posted by stockraider > 2021-05-27 08:34 |

Post removed.Why?

Posted by stockraider > 2021-05-27 08:45 | Report Abuse

Must run fast fast b4 too late loh!

Posted by eesquare > 2021-05-27 10:32 | Report Abuse

@stockraider The thing is biggest mistake a person can make is buying because of Philip or selling because stockraider says so. I hope everyone here does their due diligence.

Posted by Sslee > 2021-05-27 10:35 | Report Abuse

Haha,
The thing is Philip buying and make millions but stockraider never buy and thus never win anything

Posted by Cockroach Paul Lee > 2021-05-27 22:09 | Report Abuse

Thanks to stockraider, gotta buy more gkent lol

Posted by edw1n94 > 2021-05-28 21:39 | Report Abuse

Gkent timing just nice for glove production.

Posted by nmsfqi > 2021-05-30 18:10 | Report Abuse

stockraider is here too. Trying way too hard to prove Uncle Phillip is wrong. Lolololol! Look what he did at SERBADK, KPOWER, SCIB. Barking days and nights like a fool dog. Oi old wily stockraider. You’re no match to Uncle Phillip level loh! He’s more successful and being respected genuinely by others, unlike you. You must have a lot of haters la I wonder.

Posted by gkent2000 > 2021-06-01 17:20 | Report Abuse

finally started engine

Posted by FreshGraduate > 2021-06-04 10:41 | Report Abuse

Now at support level. If no strong support could go down to 0.70

Posted by FortuneBlooming > 2021-06-09 01:36 | Report Abuse

George Kent to build glove plant for RM624.1 million

https://www.nst.com.my/business/2021/06/697045/george-kent-build-glove-plant-rm6241mil

Posted by fortheemprah > 2021-06-09 11:47 | Report Abuse

Guys, did GKent management reached a breaking point of desperation and resorted to Gloves? It's like the bubble-tea and cafe rush where everyone hoped for an easy way forward.

Quick poll, do you foresee 5 years down the road to read the news headlines "GKent seeking to sell its glove manufacturing assets as competition pummeled the ASP of gloves to below profitable level"?

Posted by MiaoMiao7 > 2021-06-09 15:06 | Report Abuse

Hello Calvin, glad to see you here, when you going over to QL? QL there boring lah, so quiet... got spider web growing there liao.

Posted by MiaoMiao7 > 2021-06-09 15:14 | Report Abuse

Hyflux is into desalination... just because it involves water, it has nothing to do with water meter. Walao eh, wanna shoot also shoot properly lah.

Like this, you also can say pchem report fake earnings because serba also do the same...

Oh, pchem there also quite boring, when you going there to party? See you there.

Posted by RainT > 2021-06-15 19:21 | Report Abuse

GLOVE profit to down soon

now only want start do glove

Posted by AllanTingAS > 2021-06-15 21:56 | Report Abuse

I thought want to reenter buy they are investing in new biz of glove making. Thus, i will wait for their next report before investing.

Posted by eesquare > 2021-06-19 17:59 | Report Abuse

With endemic becoming the norm, affecting construction heavily, and water metering to a certain extent, I am starting to think gloves venture is a good hedge. Two key things I will observe is the cost and selling price aka. profit margin. Mah sing should be a good case study in time to come. To be competitive, you need economies of scale which why they r going ham on 12bil pieces. Seriously, you need to go big and fast asap in order to suffer the next oversupply downturn. (When it comes).

Posted by eesquare > 2021-06-20 09:17 | Report Abuse

and of course, the risk is also greater with such big heavy investment of Rm250m. Ouch. Still having mixed feelings.

Posted by fairyz > 2021-06-20 09:25 | Report Abuse

Sadly Gkent diversification choice......is terrible....if not poor?

the buy-backs attempt not worth it if they want to appease investor with this 'B' plan lol


I'd doubt they will win any new big LRT/MRT/Rail project due to previous associations..... prospect is limited to water-related biz i guess?

Should copy Taliworks and diversify a bit to Highway + Solar biz......


Let's see in 2-3 months maybe they got some other ace card in pocket....

Posted by Bgt 9963 > 2021-06-20 09:53 |

Post removed.Why?

Posted by DannyArcher > 2021-06-21 18:57 | Report Abuse

https://www.theedgemarkets.com/article/george-kent-reports-twomonth-net-profit-rm1134m-robust-sales-water-meters

Posted by eesquare > 2021-06-21 20:40 | Report Abuse

If u see clearly, the construction biz itself without lrt3 contribution is loss making for the two months. It means their construction book is very depleted already.

Posted by DannyArcher > 2021-06-21 23:06 | Report Abuse

They never secure any new contracts after PH won GE. The glove factory is probably the only new construction project. We'll have to wait until end of the year to see if they have any new incoming projects from state or fed.

Posted by Cockroach Paul Lee > 2021-06-22 02:29 | Report Abuse

Ok la, tomorrow can limit up…. Hahahahaha

Posted by LimitupLimitDown > 2021-06-22 09:09 | Report Abuse

without lrt projects its revenue stream is depleted to the core. i guess i will sell out since my cost basis 0.74, good luck everyone i will go buy crypto since now drop like a dog

Posted by eesquare > 2021-06-22 14:20 | Report Abuse

@danny They didnt secure any project since 2016, after LRT3 by the way. But to be fair, their hands were full until 2019. During PH time, basically all contractors suffered due to lesser gov projects rollout. For year 2020? We all know what happened lah. Probably after GE15, only will the projects be given out if not new gov will come n kacau again.

So, the glove factory project is indeed timely for their construction biz, whether you like their glove venture or not, haha. Regarding LRT3 deadlock, here's the pros and cons if they sell:

Pros:
-They can get assured payment now when the future of construction industry is seem to be challenging due to lack of worker, material cost, gov instability, political risk n etc.
-They can focus on their water metering, hospital/WTP construction tender and glove biz which is a lot already.

Cons:
-They will miss out on a chance to prove their rail construction ability and a good project reference when completed, this track record might affect their chances of future rail project participations.

I prefer them to sell if the price is reasonable because less risk is always better.

Posted by AllanTingAS > 2021-06-22 21:20 | Report Abuse

How to limit up? Simply give me sok sok only.

Posted by SHQuah > 2021-06-26 19:05 | Report Abuse

Game over

Posted by DannyArcher > 2021-06-30 17:56 | Report Abuse

MRT3 coming... dont know GKent got chance or not. Just a small bet. If not MRT3, maybe some water project or something.

The best way to boost the economy is to launch mega projects. Hopefully GKent gets some MRT3 project under the previous proposal Gamuda-MMC-GKent JV

Posted by maxx papa > 2021-07-02 08:24 | Report Abuse

From what I've read, Gkent is a cash rich company, unfortunately, they failed to secure a new project in the last few years. This is the reason why they start to venture into a new business - gloves.

Posted by Bgt 9963 > 2021-07-02 08:32 |

Post removed.Why?

Posted by eesquare > 2021-07-02 11:03 | Report Abuse

sorry lads, puchong factory is under mukim petaling which means EMCO. https://www.malaysiakini.com/news/581309

Posted by fortunefire > 2021-07-09 15:22 | Report Abuse

time to buy. under value

Posted by DannyArcher > 2021-07-09 19:20 | Report Abuse

It has already drop below its intrinsic value. Just park some money here and hope for some catalyst. If lady luck is on our side and they somehow got a few more gov projects, then maybe can fly. Hopefully MRT3, which is very unlikely but it is surprises like these that pushed a stock price higher. Everybody knew Gamuda is going to get MRT3... so if they really do get it, it wont go up much. GKent on the other hand... hmmm...

then again, maybe they never even bid for MRT3. Oh well.... time will tell.

Posted by AllanTingAS > 2021-07-10 13:11 | Report Abuse

Quite scary when they AGM approved proposed to enter glove industry! I sold out with some profit. Let see on their next QR and movement.