KSH Holdings - OCBC Investment 2018-02-13: A Better Quarter

KSH Holdings - OCBC Investment 2018-02-13: A Better Quarter KSH HOLDINGS LIMITED ER0.SI

KSH Holdings - A Better Quarter

  • KSH Holdings reported a stronger set of 3Q18 results. Revenue rose 19.7% to S$43.0m on the back of a 20.3% growth in project revenue and a 3.6% growth in rental income. 
  • Construction margins remained steady at 22.6% vs. 23.1% in 3Q17. 
  • The share of results from associates and joint ventures fell from S$5.2m in 3Q17 to S$3.8m in 3Q18, mainly due to a decline in sales and percentage of completion revenue recognized on development projects in Singapore.
  • All-in-all, 3Q18 PATMI increased 12.9% y-o-y to S$10.3m. Nonetheless, on a 9M18 basis, PATMI fell 25.2% y-o-y to S$20.4m on the back of a 43.4% YoY decline in revenue. 
  • As at end-2017, KSH’s order book stands at S$587.0m. Going forward, management continues to selectively tender for construction projects with healthy margins. 
  • We believe that KSH stands to benefit operationally from the Singapore residential turnaround which will benefit both its construction business as well as its development projects with JVs and associates. 
  • We maintain HOLD on KSH Holdings with a fair value of S$0.79.




Eli Lee OCBC Investment | http://www.iocbc.com/ 2018-02-13
OCBC Investment SGX Stock Analyst Report HOLD Maintain HOLD 0.790 Same 0.790



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