In their Jan 17 report, Tan and Ong note that GKE’s 1HFY2023 revenue for its warehouse segment remained healthy although its RMC business operations were “weak”. Overall revenue for the period stood flat y-o-y with stronger warehousing and offset by weak infrastructure figures.
CGS-CIMB Research analysts Kenneth Tan and Ong Kang Chuen have maintained their “hold” rating on GKE Corp, but have trimmed their target price from 10 cents to 9.4 cents.
In its results for the 1HFY2023 ended Nov 30, 2022, GKE’s net profit stood at $1 million, down by 74% y-o-y but up by 12% h-o-h. The plunge in net profit was due to the $2 million of credit loss provisions for GKE’s ready mix concrete (RMC) business and stood below the analysts’ expectations at 14% of their FY2023 estimates.
