Brokers' take

GSS Energy | Neutral (downgraded) May 14 close: S$0.082 Target price: S$0.08 RHB Research Institute, May 14

While revenue was maintained, margins narrowed to 16.1 per cent in Q1 2019 from 23.3 per cent in Q1 2018, mainly due to stiffer price competition, cost-down pressures from customers as well as changes in its product mix.

Going forward, margins should improve in subsequent quarters - albeit still lower than that of FY2018.

GSS Energy's oil and gas (O&G) business suffered from many setbacks and delays throughout the year. It is at an advanced stage of obtaining regulatory approvals to monetise the two proven wells - but could see further delays due to the uncertain timeline of getting the green light from the authorities. Unt…