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
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https://www.iocbc.com/
2019-02-15
SGX Stock
Analyst Report
0.810
SAME
0.810
