KUALA LUMPUR (Dec 15): George Kent (Malaysia) Bhd’s net profit for the third quarter ended Oct 31, 2020 (3QFY21) was kept steady at RM10.65 million, a marginal 4% higher than the RM10.26 million it made a year ago, underpinned by strong water meter sales. 

Revenue rose 8.22% to RM78.91 million from RM72.91 million, the group’s bourse filing showed. It did not declare any dividend for this quarter, compared to the one sen it declared in the same quarter last year.  

On a quarter-on-quarter basis, the group’s net profit rose 21.83% from RM8.74 million in the second quarter, while revenue increased 12.47% from RM70.16 million.

For the nine months ended Oct 31, 2020, however, the group’s net profit was down 33.61% to RM23.12 million from RM34.82 million a year ago, while revenue dropped 25.66% to RM188.38 million, from RM253.41 million.

“In spite of the people movement controls implemented domestically since March 18, 2020 and in many countries abroad since early in the year, water meter orders continued unabated,” the group said in a statement about its latest quarterly performance.

The group also noted that water meter production was affected in the earlier stages of the Movement Control Order (MCO), resulting in an order backlog.

“The group in 3QFY21 continued to adhere to prevailing standard operating procedures (SOPs) whilst gradually restoring its manufacturing capacity to clear the backlog and cater for new orders from local and regional water authorities,” it said.

It also noted that the metering division is expected to continue to do well in the final quarter of 2021 and beyond, and that the group has plans to further increase its capacity.

Meanwhile, the group noted that its construction activities, which ground to a halt during the MCO, were restarted in mid-June after the group completed a mandatory health screening on its foreign workers.

This allowed the group to accelerate progress on two hospital projects it was working on, it said.

George Kent chairman Tan Sri Tan Kay Hock said he is optimistic on the group’s prospects, given its ongoing operating and long-term plans.

“It is our strategy to become a one-stop purveyor of water meters. We are actively growing our product portfolio through partnerships with other manufacturers. The expanded range will accelerate our penetration into more markets around the world,” he said.

He also said the group’s long-term license agreement with Honeywell enhances its control over component supply and production costs, while giving the group the right to sell water meters to 15 new territories in Asia.

“Our home-grown Smart Metering technology is undergoing real-world tests through POCs (point of contacts) and pilot projects with state water authorities. We are pursuing other such opportunities, both locally and in the region,” he added.

George Kent shares closed one sen or 1.28% lower at 77 sen today, valuing the group at RM404.99 million.