KSH Holdings - OCBC Investment 2019-02-15: Expecting Construction Demand To Remain Robust

KSH HOLDINGS LIMITED (SGX:ER0) | SGinvestors.io KSH HOLDINGS LIMITED (SGX:ER0)

KSH Holdings - Expecting Construction Demand To Remain Robust

  • KSH HOLDINGS LIMITED (SGX:ER0)’ 3Q19 revenue increased 80.6% y-o-y to S$65.5m, on the back of a 84.1% y-o-y increase in project revenue. However, mainly due to a 111.1% y-o-y increased in the cost of construction to S$55.5m, 3Q19 PATMI dropped 35.8% y-o-y to S$6.1m.
  • KSH Holdings’ order book stands at > S$490.0m as at 31 Dec 2018, and is to be progressively recognised up to FY2022. This includes the S$266.3m Riverfront Residences construction contract, as well as the S$53.8m and S$28.9m construction contracts awarded in August 2018.
  • Meanwhile, more than S$439.0m of attributable share of progress billings are to be recognized as sales revenue from property development projects held by associates and joint ventures under the group.
  • As at 31 Dec 2018, most of the development property projects held by associates and JVs to the current financial year FY19 have been either fully sold or substantially sold.
  • We expect construction demand to remain strong in 2019 and believe KSH Holdings stands to benefit from the positive industry outlook.
  • Maintain BUY on KSH Holdings with our fair value of S$0.81.





Deborah Ong OCBC Investment Research | https://www.iocbc.com/ 2019-02-15
SGX Stock Analyst Report BUY MAINTAIN BUY 0.810 SAME 0.810



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