PETALING JAYA: George Kent (Malaysia) Bhd’s net profit for the first quarter ended April 30, 2019 fell 37.28% to RM13.51 million from RM21.54 million a year ago due to the lower contribution from the engineering division.
In a filing with Bursa Malaysia, the group said that its engineering division reported a 23% drop in segment profit to RM16.38 million from RM21.31 million a year ago, due to a 30% drop in revenue to RM51.43 million from RM72.99 million a year ago.
Construction accounts for 90% of the revenue and 88% of segment profit of the engineering division.
The metering division’s segment profit was also lower, declining 18% to RM4.99 million from RM6.09 million a year ago due to lower gross profit margin. Revenue for the division rose 17% to RM31.35 million from RM26.78 million a year ago.
George Kent’s revenue for the quarter fell 17.02% to RM82.78 million from RM99.76 million a year ago, due to lower revenue from the engineering division.
Chairman Tan Sri Tan Kay Hock (pix) said the group’s first quarter results are credible, despite making a small loss on LRT3 as construction work is only expected to begin towards year-end.
“This demonstrates the robustness of the group’s businesses. Our metering division fulfilled increased orders during this period, whilst our effective project management and execution contributed to improved margins and profits for the engineering division,” he said in a statement.
“I am encouraged by the increasingly strong demand for our water meters. We continue to add new markets. We are working towards manufacturing the imported precision components, in order for us to become an integrated water meter manufacturer. This will give us better control over our water meter supply and enhance our margins,” he added.
He said the group’s expertise and experience as a rail systems integrator puts it in a favourable position to compete for domestic rail projects and the group has a dedicated team to actively pursue railway opportunities in the region.
“Similarly, with the successful completion of over 30 water infrastructure projects in the last 26 years, the group is well-positioned to explore opportunities arising from the Malaysian government’s drive to resolve the country’s non-revenue water issue. The group is committed to delivering on our order book of over RM5 billion,” he said.
