“Excluding effects of government grants, GKE’s 1H net profit declined 12% y-o-y,” say the analysts in a Jan 18 report, who attributed the miss to weaker-than-expected operations in China.
CGS-CIMB analysts Ong Khang Chuen and Kenneth Tan have maintained their “add” rating on GKE Corp with a lowered target price of 16 cents from 21 cents previously.
According to Ong and Tan, GKE’s net profit of $3.8 million for the 1HFY2022 ended Nov 30, 2021. The figure, which was a 41.5% y-o-y decline, stood below the analysts’ expectations at 27% of their FY2022 forecast.
