Brokers' take

KSH Holdings | Buy

June 2 close: S$0.51

Fair value: S$0.71

OCBC Investment Research, June 2

KSH reported that profit after tax and minority interests (Patmi) for FY15 decreased 7 per cent to S$41.7 million versus S$44.8 million in FY14. This was mainly due to reduced contributions from both the construction and development businesses, lower fair-value gains on investment assets and higher personnel expenses, but partially offset by higher interest income.

We judge these results to be broadly within expectations. Management indicates that the construction sector continues to face headwinds in the form of rising costs and, in addition to private construction projects, the group will maintain a dual focus on tendering for public projects, for which demand is anticipated to stay strong …