“We believe GKE’s 2HFY2022 net profit was weaker both h-o-h and y-o-y due largely to a sluggish RMC market in China as well as delayed commencement of its new initiatives — both in Singapore and China,” write the analysts.
CGS-CIMB Research analysts Kenneth Tan and Ong Khang Chuen have downgraded GKE Corp to “hold” with a lower target price of 10 cents from their previous target of 16 cents, as the storage company’s ready-mix concrete (RMC) operations continue to be suppressed by weak sentiments in China’s property sector.
In addition, the analysts have reduced their earnings per share (EPS) estimates for the FY2022 to FY2024 by 19%-29%, bringing their net profit forecast for the FY2022 to $6.8 million, a y-o-y dip of 41%.
