KUALA LUMPUR, June 24 — George Kent (M) Bhd’s performance is expected to fare better in the coming quarters as its manufacturing utilisation rates and construction activities return to normalcy, according to Kenanga Research.

The research house said the company’s first quarter bearish performance was within its expectation, bearing in mind that the quarter (Feb-April period) absorbed the full brunt of  the Movement Control Order (MCO) at its peak.

“And we expect the coming quarters to gradually perform better. No dividends as expected,” it said in a note today.

Overall, Kenanga Research said it is maintaining its underperform call on George Kent’s shares with an unchanged target price of 51 sen.

Advertisement

“Our rating is premised on the fact that the group’s revenue and profit have been declining due to its depleting orderbook, with the prospect to replenish construction contracts remains bleak,” it said.

George Kent has recommended the construction of the two hospital projects in Putrajaya and Tanjung Karang works to resume on June 9 and 11, respectively, while its metering division operation fully restarted on May 4.

It recorded a 72 per cent year-on-year drop in net profit to RM3.73 million in the first quarter ended April 30, 2020, as it ceased its water meter production, as well as construction activities following the MCO.

Advertisement

Revenue was 53 per cent lower at RM39.31 million compared with RM82.78 million a year earlier.

At 10.30am, its shares up half sen to 66.5 sen with 2.4 million traded. — Bernama