Brokers' take

GSS Energy | Neutral (maintained) Aug 20 close: S$0.074 Target price: S$0.074 RHB Research Institute, Aug 20

GSS Energy's Q2 FY2019 profit of S$0.087 million stemmed from price competition and cost-down pressures, which shrunk margins, as well as higher depreciation costs from new machines.

Revenue continued to be lower - by 5.7 per cent year-on-year (yoy) - due to weaker demand, while margins narrowed to 15.4 per cent in Q2. This was mainly due to stiffer price competition, cost-down pressures from customers, and changes in its product mix.