Revenue from the company’s China RMC business remained “lacklustre” as construction activities in Wuzhou saw little improvement, in the analysts’ view. The company’s credit loss provisions narrowed by 36% on a y-o-y basis, but still came in at $1.2 million, 371% higher h-o-h. “We think [this] reflects GKE’s guarded sentiment towards domestic developers,” they write.
CGS-CIMB Research analysts Kenneth Tan and Ong Khang Chuen have kept their “hold” call on GKE Corp as the company’s results for the 1HFY2024 ended Nov 30, 2023, missed expectations owing to the weak contribution from GKE Corp’s China ready-mix concrete (RMC) business. This resulted in lower-than-expected revenue growth and credit loss provisions of $1.2 million.
On Jan 12, GKE Corp reported a net profit of $1.90 million for the six-month period, which was 90.1% higher y-o-y but down by 35% h-o-h. The figure also made up 32% of CGS-CIMB’s FY2024 forecast for the company.
