Brokers' take

GSS Energy | Buy Target price: S$0.25 March 13 close: S$0.174 RHB Research, March 13

GSS Energy (GSS) has adopted a dividend policy of at least 20 per cent of profit after tax and minority interests (PATMI) for FY2018F-2019F. We believe that management is keen to reward shareholders by implementing this policy. This is also a positive sign and strong vote of confidence from management in its outlook, as its precision engineering (PE) business is enjoying healthy growth while it may potentially start selling oil in H1 2018.

We expect 20 per cent of PATMI to be equivalent to a potential dividend yield of 1.9 per cent for 2018, before it gradually increases to 2.4 per cent in 2019F.