The company is basically involved in warehousing and infrastural materials, namely Ready Mixed Concrete (RMC).
Both segments are doing well. As per management comments,
1) the warehouse is operating at optimal occupancy and
2) Infrastructural materials and services segment continues to register
strong earnings growth on the back of China's economic recovery.
Production capacity has been increased from 800,000m cubic to 1,200,000m3.
It's a clear case of a turnaround company with a half-year profit of S$6.5 million which is much higher than last year's full-year profit of S$4.7 million.
ASIA-PACIFIC' S logistics expenditure is estimated to log a compound annual growth rate (CAGR) of 6.5 per cent between 2020 and 2024, according to Transport Intelligence (Ti).
" The UK-based research and analysis company estimated that spending amounted to nearly 2.6 trillion euros (S$4.2 trillion) in Asia-Pacific in 2020, accounting for 45 per cent of global logistics. In particular, the region' s e-commerce logistics market grew 22 per cent in nominal terms in 2020. Valued at 153 billion euros, it was the largest regional e-commerce logistics market. It accounted for 41.6 per cent of the global market, according to reports by Ti."
" Singapore does not have that many listed logistics players. Among the few listed here are Singapore Post, which has freight forwarding and e-commerce services container shipping company Samudera Shipping and logistics groups Chasen Holdings and GKE Corporation."
Above are selected extracts of an article published by the Business Times.
1. Gke was loosing money in year 2017, 2018 and 2019. Year 2020
the company turnaround w a profit of $4.7 mil. The profits grew further
in 1st half 2021, when the company registered a profit of $6.5 mil which
is 38% higher than 2020 full year. This implies that 2021 profits will be
at least 150% higher than 2020.
2. Full year 2021 results should be out next month ie July 2021.
3. Management comments in the half year results were mostly positive.
It mentioned that the 2 sectors in the company were operating at optimal
level.
4. Below is management comment on the Ready Mixed concrete sector:
" the performance of its infrastructural materials and services to remain
positive on the back of increasing urbanisation projects in China."
5. Below is a comment on the warehouse sector:
" The higher demand against limited warehouse space resulted in optimal
" utilisation and better rental rates.
6. " On 14 October 2020, the Group announced that it has renewed the lease for
its 30 Pioneer Road warehouse cum office property in Singapore for another five
years beginning 15 April 2021" . It is understood that the renewal result in lower rent.
Above are for info only. I am heavily vested and my views may be bias. Dyodd.
SAC Capitals 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.
Above is an extract of a write up by SAC Capital. For info only.
Warehousing and storage company GKE Corp is enjoying a good start to the year with enhanced medical supply stockpiling in Singapore and China infrastructure boom, says CGS-CIMB Research analysts Ong Khang Chuen and Kenneth Tan.
Ong and Tan are maintaining their add call on the company with a raised target price of 18.4 cents from 18 cents.
Above is an extract of a write up from CGS-CIMB. For info only.
