Concrete plant revenue lifts GKE back to black in Q2
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Sharanya Pillai
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LOGISTICS firm GKE on Monday posted a net profit of S$1.55 million for the second quarter ended November, reversing the year-ago S$1.39 million loss.
This comes as revenue rose 44.1 per cent to S$29.5 million, cemented by revenue from its Chinese concrete plant, Wuzhou Xing Jian.
GKE's latest earnings per share now stands at 0.2 cent, compared to the 0.2-cent loss per share a year ago.
For the six months ended November, net profit stood at S$1.8 million, compared to the S$1.69 million loss a year ago. Half-year revenue is up 39.1 per cent to S$55 million. The company's gross margin also rose 0.1 percentage point to 18.6 per cent in H1 FY2020, due to higher gross margins from Wuzhou Xing Jian.
The warehousing and logistics business in Singapore will remain challenging due to price competition and slower economic growth, GKE said in a commentary accompanying its results.
"Against the backdrop of slower economic growth, US-China trade issues and tensions in the Middle East, there are signs that the oversupply of warehousing space is easing as we have been receiving enquiries about our services from existing and new customers.
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"In China, the Group is embarking on its new projects, a recycling plant for production of raw materials and a ready-mix concrete plant. Despite the slowing macro economy in China, demand for such construction materials remains strong and relevant," the company added.
GKE shares closed flat at S$0.064 on Monday.
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