According to them, this overperformance was due to stronger-than-expected margin expansion for its Singapore operations, offsetting the slight decline in China.
CGS-CIMB Research has maintained its “hold” call on GKE Corporation (SGX:595
) as the group’s strong Singapore operations were offset by weak business in China.
In their report dated July 28, analysts Kenneth Tan and Ong Khang Chuen note that GKE’s net profit of $2.9 million for 2HFY2023 ended May 31, a 227% increase y-o-y, came in above their expectations, with the company’s FY2023 net profit of $3.9 million forming 159% of their full-year forecast, despite being a 17% y-o-y decrease.
