This article first appeared in The Edge Financial Daily, on September 29, 2015.
GEORGE KENT (M) BHD (+ve)
GEORGE Kent (Fundamental: 1.4/3, Valuation: 1.4/3) triggered our momentum algorithm for the third time this month, rising 2.7% to RM1.53 yesterday.
The company most recently won a RM31.2 million contract to supply 600,000 units of water meters to the Water Supplies Department in Hong Kong over the next two years. The contract is expected to boost FYJan2016 earnings per share (EPS) by 0.29 sen, about 3% of its FY2015 EPS of 9.35 sen.
Earlier this month, Prasarana announced the appointment of the joint venture between MRCB and George Kent as its project delivery partner for the RM9 billion LRT3 project. The ground work for the 36-km LRT line is expected to start by early 2016 and is set for completion by August 2020.
The project delivery partner stands to get 6% of the total contract value as management fees. MRCB and George Kent each owns a 50% stake in the joint venture.