George Kent rises one sen, may have bottomed out

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KUALA LUMPUR (Sept 18): George Kent (M) Bhd rose one sen or 0.6% to RM1.60, on the back of a profit rise in its second quarter ended July 31, 2014 (2QFY14).

Investors had also chased the water meter manufacturer's shares for its proposed dividend.

At 10.08am, George Kent was traded at RM1.60 with 182,000 units changing hands. It had earlier reached a high of RM1.64.

Despite the increase in the stock’s price, a remisier who spoke to theedgemalaysia.com said George Kent's performance was “lacklustre.”

“The recent quarter results were decent with a 2 sen dividend announced. However, as the share price has already appreciated about 38% yesterday, I think it would require a really good set of results for share price to move again.

“Lack of new developing story is probably the reason for the lacklustre performance of the share price today,” he said.

He said George Kent needed to break the RM1.65 threshold for the stock to move up further.

“At the moment, I think George Kent has bottomed out,” he said.  

Yesterday, George Kent said it posted a net profit of RM6.1 million in 2QFY14, a 19.6% increase from RM5.1 million in the previous corresponding period.

This was despite a 9.5% decline in revenue to RM75.04 million compared to RM82.95 million in the previous corresponding period.