GKMS Technical Analysis
Commentary on prospects:
The Group has achieved yet another record set of first-quarter results. Notably, profit after tax registered at RM21.54 million, up 16% from RM18.50 million in the previous corresponding period. Construction projects were executed well and on time. The Metering business contributed significantly having grown at a compounded annual growth rate (CAGR) of 24% over the last three years. George Kent has positioned itself to tap on growth opportunities in Smart Metering. The potential growth for the Group from Smart Metering is significant considering it being the first mover and a market leader in the Region
The Group’s balance sheet remained strong with a net cash position of RM343.52 million with a healthy order book. Its outstanding order book of RM5.38 billion will continue to provide earnings visibility in the medium term. The Group remains optimistic for the rest of the year. - 42 Going forward, with a strong balance sheet, the Group will increase its resources substantially, in terms of manpower and financial resources, to further accelerate growth in metering and other water-related businesses as well as concessions through M&As and strategic partnerships. This is in line with the Group's long-stated Strategic Plan to broaden its income base by substantially increasing the income from the Metering and other water-related businesses and investments.