For its FY2025 ended Dec 2024, Geo Energy's revenue was 113% of his expectation but earnings were just 70% of what he projected, which can be attributed to a spike in tax rate from an estimated 22% to 63%, due to new taxable income computation on local coal price indexation rather than realised coal prices.
Despite FY2025 earnings below expectations, Paul Chew of PhillipCapital has turned more bullish on Geo Energy Resources, due the impending "trifecta" earnings boost ahead from rising coal prices, growing production volume, and also additional earnings from its infrastructure investments.
From an earlier target price of 59 cents, Chew, in his March 16 note, figures that this counter is worth 75 cents.
