GKE Corporation (SGX:595)

[Shion]

GKE shareholders in potential sale discussion

http://www.theedgemarkets.com.sg/article/gke-shareholders-potential-sale-discussion

SINGAPORE (Feb 15): GKE Corporation, which has interests in logistics and building materials, announced that “some of its substantial shareholders” have been approached “to explore a potential acquisition” of shares in the company, said the company’s CEO Neo Cheow Hui in an announcement after the market closed on Wednesday.

Over the past month, GKE shares have been climbing steadily. From 10.6 cents on Jan 24, it has nearly doubled to 19 cents on Tuesday. It closed on Wednesday at 18.9 cents, down 0.1 cent. The company is now valued at nearly $130 million. SGX has yet to publicly query the company on its unusual trading pattern.

“The Company further understands that the discussion is at a preliminary stage and there is no assurance that any definitive agreement or transaction will materialise,” says Neo.

“Taking into consideration the above, the Company wishes to inform that it has not received any formal nor written indications from the substantial shareholders on the matter,” he adds.

The company’s single largest shareholder is chairman Chen Yong Hua, a Chinese national with interests in property, logistics and printing. He owns 9.83%. Another significant shareholder is Spencer Tuppani, who recently took on a 7.05% stake in the company after selling his company, TNS Ocean Lines, a port services provider, to GKE, last November.

The Edge Singapore understands that the potential buyer is a state owned Chinese company, joining the list of Chinese capital acquiring assets here in Singapore.

 

[ccostagmont]

Where is wahkao fata master?
Is this one considered smelly insider trading?
Price chiong so high up then they release news?
Need to write complain letter to kelvin koh of sgx mkt surveillance?

Sent from Xiaomi REDMI NOTE 3 using GAGT

 

[kingpartner]

Talk so long still no news.. now Edge talk again

 

[Jupiter2017]

http://www.businesstimes.com.sg/companies-markets/gke-posts-deeper-loss-in-q2-on-impairment-loss
GKE posts deeper loss in Q2 on impairment loss
Fri, Jan 12, 2018 - 8:05 PM Jamie Lee leejamie@sph.com.sg

LOGISTICS firm GKE Corporation on Friday posted a deeper loss for the fiscal second quarter despite higher revenue, after setting aside income for a hefty impairment loss.
Net loss for the three months ended Nov 30, 2017 stood at S$7.94 million, compared to a net loss of S$558,000 a year ago.
The results were dragged by a provision for impairment loss in the joint venture for the liquefied gas carrier vessel, Ocean Latitude, of S$6.2 million.
Revenue rose 51.8 per cent to S$18.1 million, due in part to the addition of its port operations.

price link: http://www.shareinvestor.com/fundamental/factsheet.html?counter=595.SI

 

[Shion]

SAC Capital optimistic on GKE as it cements its position in logistics and construction​

https://www.theedgesingapore.com/ca...ments-its-position-logistics-and-construction
SAC Capital’s Tracy Lim has initiated coverage on warehousing and logistics solutions provider GKE Corp with a “buy” call and a target price of 16.3 cents.

In her report dated June 8, Lim noted that GKE posted strong results for the 1HFY2021 ended Nov 30, 2020, with stellar results expected for the FY2021.

During 1HFY2021, GKE reported a 9.2% y-o-y increase in revenue to $60.1 million, and higher gross margins of 24.2% from 18.6% previously. 1HFY2021 PATMI or earnings surged 3.6 times to $6.5 million on the back of higher margins, which Lim expects “can be maintained moving forward”.

The higher gross margins for the 1HFY2021 were attributable to an increase in contribution by its infrastructural segment which generally has higher margins, as well as a higher utilisation of warehousing space for the logistics segment due to Covid induced stockpiling.

“For logistics segment, which has high fixed costs, stockpiling has increased utilisation rates which will give economies of scale and bring down unitary costs. We expect FY2021 to see higher segmental margins from logistics.” she adds.

China’s urbanisation plans are also another catalyst for GKE, deems Lim. The upgrading of infrastructure for Wuzhou and Cenxi will bring sustained demand for ready mixed concrete (RMC). GKE has one RMC plant in Wuzhou, and the Cenxi plant is expected to come online later this year.

With Cenxi’s new plant, the total production capacity, including Wuzhou’s existing 3 production lines, would be increased to 1.6 million cubic metres. The current utilisation rate of about 50% means output can be raised when demand increases, says Lim, who adds that it would lift contribution to GKE’s infrastructural segment contribution and group margins.

As at 3.38 pm, shares of GKE traded at 13.3 cents, with a forecasted FY2021 price to earnings ratio of 8.8 and price to book ratio of 1.2.

 

[Shion]

GKE Corp's FY21 earnings more than double to $11.5 mil, proposes 0.4 cent div​

https://www.theedgesingapore.com/ca...ings-more-double-115-mil-proposes-04-cent-div
GKE Corp has released a stellar set of results for FY2021 ended May 31.

The warehousing and logistics company has proposed a final (tax exempted) dividend 0.4 cent a share for FY2021, subject to shareholder approval.

During the year, GKE’s earnings more than doubled to $11.5 million from $4.7 million a year ago.

Its revenue grew 10.9% y-o-y to $118.9 million from $107.3 million.

GKE says its improved revenue was due to higher occupancy of GKE’s warehouses in Singapore and at better rental rates, higher trucking volume, and higher volume of ready-mix concrete (RMC) produced and sold in Wuzhou.

Neo Cheow Hui, CEO and executive director of GKE, says the company will continue to seek “viable” opportunities in view of the eventual re-opening of the global economy.

Such opportunities, he says, lie particularly in the specialty chemicals and electronics industries in Singapore.

On July 28, GKE ended up 0.2 cent or 1.3% at 16.1 cents with 12.5 million shares changed hands.

 

[Shion]

https://www.theedgesingapore.com/capital/ma/gke-acquires-fair-chem-industries-125-mil

 

[Shion]

Brokers' take: CGS-CIMB lowers GKE target price on tougher operating environment in China​

https://www.businesstimes.com.sg/co...get-price-on-tougher-operating-environment-in

 

[Shion]

CGS-CIMB downgrades GKE with lower target price of 10 cents​

https://www.theedgesingapore.com/ca...mb-downgrades-gke-lower-target-price-10-cents
CGS-CIMB Research analysts Kenneth Tan and Ong Khang Chuen have downgraded GKE Corp to “hold” with a lower target price of 10 cents from their previous target of 16 cents, as the storage company’s ready-mix concrete (RMC) operations continue to be suppressed by weak sentiments in China’s property sector.

In addition, the analysts have reduced their earnings per share (EPS) estimates for the FY2022 to FY2024 by 19%-29%, bringing their net profit forecast for the FY2022 to $6.8 million, a y-o-y dip of 41%.

“We believe GKE’s 2HFY2022 net profit was weaker both h-o-h and y-o-y due largely to a sluggish RMC market in China as well as delayed commencement of its new initiatives — both in Singapore and China,” write the analysts.

“We cut our full-year distribution per share (DPS) estimate to 0.2 cents, assuming a dividend payout ratio of 25% and indicating FY2022 dividend yield of c.2%,” they add.

Looking ahead, the CGS-CIMB analysts expect tight restrictions to negatively impact China’s RMC market.

“We believe developers may have slowed down project executions in Wuzhou in 2HFY2022 given [the] near-term tight liquidity in the construction sector,” they write. “As such, we see weaker-than-expected volume sales from GKE’s RMC plant in Wuzhou.”

Positively, Singapore’s logistics segment continues to perform well, with the full utilisation of GKE’s warehouses in 2HFY22F reflecting favourable industry trends.

“We estimate GKE’s 2HFY2022 logistics revenue was further boosted by contribution from specialty chemicals subsidiary Fair Chem, which was acquired on Jan 28,” say the analysts. “We understand the group is still in the process of converting some of its yard space into higher-yield chemical storage areas, which we now expect to only commence contribution in 1HFY2023.”

As at 2.58pm, GKE traded flat at 10.4 cents.

 

[Shion]

Bumpy recovery ahead for GKE, but ‘worst likely over’: CGS-CIMB​

https://www.theedgesingapore.com/ca...recovery-ahead-gke-worst-likely-over-cgs-cimb
CGS-CIMB Research analysts Kenneth Tan and Ong Kang Chuen have maintained their “hold” rating on GKE Corp, but have trimmed their target price from 10 cents to 9.4 cents.

In its results for the 1HFY2023 ended Nov 30, 2022, GKE’s net profit stood at $1 million, down by 74% y-o-y but up by 12% h-o-h. The plunge in net profit was due to the $2 million of credit loss provisions for GKE’s RMB business, and stood below the analysts’ expectations at 14% of their FY2023 estimates.

In their Jan 17 report, Tan and Ong note that GKE’s 1HFY2023 revenue for its warehouse segment remained healthy although its ready-made cement (RMC) business operations were “weak”. Overall revenue for the period stood flat y-o-y with stronger warehousing and offset by weak infrastructure figures.

GKE reported revenue of $54.7 million for 1HFY2023, just 0.5% lower y-o-y. On a segmental basis, its warehousing segment saw a 19.8% increase in revenue from $36.12 million in 1HFY2022 to $43.29 million in 1HFY2023. This was largely driven by the financial contribution from speciality chemicals subsidiary Fair Chem, which it acquired in January 2022, as well as an increased capacity for Dangerous Goods (DG) storage at newly converted yards.

“The conversion of space into DG storage enhanced rental yields, helping the segment’s profit before tax (PBT) margin to expand 1.1% percentage points y-o-y to 13.3% in 1HFY2023,” the analysts write

GKE’s warehouse business continued to see positive warehouse rental reversions of 5% y-o-y, and the analysts add that the group’s warehouses remain at close to full occupancy, with tenant mix optimisation ongoing.

Moving forward, GKE plans to carry out more asset enhancements to grow its DG storage capacity, and in view of the higher-margin DG mix, the analysts raise their FY2023 to FY2025 segment PBT forecast by 20-21%.

On the other hand, the RMC business suffered a 40.4% drop in revenue, falling from $18.77 million in 1HFY2022 to $11.19 million in 1HFY2023.

Elaborating, the analysts say that the RMC operations in China were adversely impacted by China’s housing market slump and tight pandemic measures imposed.

Ong and Tan write: “while we think the worst is over operationally given the recent easing of pandemic measures in China and easing of “three red lines” policy for the property sector, we expect construction activities to only recover more meaningfully in FY2024.”

The analysts still see risks on higher credit loss allowances in 2HFY2023, noting that PBT for the RMC segment in 1HFY2023 is in a loss position. They expect the segment PBT to break even in 2HFY2023, while their FY2024 to FY2025 segment PBT forecast is cut by 37-47%.

Overall, GKE’s operating profit margin (OPM) declined 3.1% percentage points y-o-y, on the back of operational deleverage from weaker volumes in China RMC business and credit loss allowances.

Similar to 1HFY2022, no interim dividends were proposed.

“While we believe the worst is likely over for GKE, we remain cautious near-term on the pace of recovery in its China RMC operations, given the higher credit risk environment,” Ong and Tan say.

Some re-rating catalysts they see include a faster-than-expected recovery in China’s construction sector, while downside risks include higher credit losses and prolonged turmoil in China’s property market.

As at 11.51am, shares in GKE traded at 8.7 cents, with a FY2023 P/B ratio of 0.73x and dividend yield of 3.12%