KUALA LUMPUR (Dec 14): George Kent (Malaysia) Bhd saw its net profit surge 67.02% to RM12.07 million in the third financial quarter ended Oct 31, 2016 (3QFY16), from RM7.23 million a year ago, underpinned by the effect of foreign exchange rate on export sales.

In a filing with Bursa Malaysia today, the metering and engineering company said revenue for 3QFY16 was up 0.94% to RM96.94 million, from RM96.03 million in 3QFY15.

George Kent also declared a second interim dividend of 1.5 sen per share, amounting to RM4.51 million, for the financial year ending Jan 31, 2016 (FY16), payable on Jan 26, 2016.

For the cumulative nine-month period (9MFY16), the group’s net profit jumped 53.62% to RM30.41 million, from RM19.8 million a year ago. Revenue for 9MFY16 also rose 14.7% to RM270.62 million, from RM235.93 million in 9MFY15.

The group attributed the positive results to the increased contributions from its engineering and metering divisions and the spillover effects from the weakened ringgit, as the majority of metering export sales are denominated in US dollars.

Following the encouraging results, George Kent is optimistic of another good year for FY16.

“We will continue to deliver the projects on time, as we also explore other opportunities that will benefit George Kent and our shareholders alike,” its chairman Tan Sri Tan Kay Hock said in a statement today.

As of Oct 31, the group’s order book stood at RM5.5 billion.

“The group will continue with its efforts to further grow its order book and to enhance the capability, achieve greater efficiency and increase productivity of the manufacturing facilities,” Tan said.

Although the Light Rail Transit Line 3 project is not expected to have any significant effect on the earnings of the group for FY16, it is expected to contribute positively to its future earnings.

George Kent's shares closed 5 sen or 2.96% lower at RM1.64 today, bringing it a market capitalisation of RM492.67 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)