GKE Corporation - CGS-CIMB Research 2022-01-18: China Slowdown An Overhang

GKE Corporation - China Slowdown An Overhang

  • GKE Corp (SGX:595)’s 1HFY22 (Jun 2021 to Nov 2021) net profit of S$3.8m (-24% h-o-h, -42% y-o-y) was impacted by weaker China operations, with lower volumes and credit loss provision during the period. See GKE Corp's announcements.
  • Nevertheless, we expect further growth in Singapore’s logistics segment, with continued optimisation of warehouse yield and contribution from new M&As.
  • We lower our FY22-24F earnings per share forecast for GKE Corp by 16-41% to reflect lower revenue and margin assumptions on the China infrastructure materials segment.
  • Reiterate ADD call on GKE Corp, with a lower SOP-based target price of S$0.16, implying 11.7x CY22F P/E.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.

ONG Khang Chuen CFA CGS-CIMB Research | Kenneth TAN CGS-CIMB Research | https://www.cgs-cimb.com 2022-01-18

Read also CGS-CIMB's most recent report:
2023-01-17 GKE Corp - Worst Likely Over But Bumpy Recovery Ahead.

Previous report by CGS-CIMB:
2022-07-28 GKE Corp - Ready-Mix Concrete (RMC) Operations Remain Challenging In China.

Price targets by other brokers at GKE Corp Target Prices.
Listing of research reports at GKE Corp Analyst Reports.

Relevant links:
GKE Corp Share Price History,
GKE Corp Announcements,
GKE Corp Dividends & Corporate Actions,
GKE Corp News Articles

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