Brokers' take

KSH Holdings | Buy Target price: S$1.08 Feb 22 close: S$0.75 UOB Kay Hian, Feb 22

With the recent share price drop, we believe the negatives in the construction sector are now priced in. We see some light in the tunnel ahead. While the GaoBeiDian project may perform below expectations, cheap land cost means it is still a mega profit driver for KSH over its 10-year development cycle. Following land acquisitions, KSH now has a solid landbank to ride on Singapore's property upcycle.

KSH also showed execution astuteness in grabbing sites on the cheap in this en bloc wave. Its purchase, as part of a consortium, of Serangoon Ville at S$835 psf ppr is about 16 per cent lower than the S$964.80 psf ppr paid by Keppel-WingTai JV for a nearby Sera…