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 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.