Brokers' take

GSS Energy| Buy Target price: S$0.25 March 6 close: S$0.163 RHB Equity Research, March 6

We think GSS is significantly undervalued and provides a unique opportunity for investors to ride on the manufacturing boom and oil price recovery.

We expect new projects in the automotive and consumer space to fuel more growth into FY18. There have been ongoing trials with a new customer in the consumer space, and GSS expects to start full scale production by H1 2018 (which can contribute 15 per cent topline growth for the segment in FY 2018 forecast). However, we understand that this project's margins will be lower. All in all, we expect the outlook to still be positive for its precision engineering arm in FY18.