Keong Hong posts 87% fall in Q4 net profit in absence of one-time gain

FOURTH-QUARTER net profit of Keong Hong Holdings fell in absence of an exceptional gain and lower revenue.

The construction and property group posted an 86.9 per cent decline in net profit to S$6.8 million for the three months ended Sept 30.

Earnings per share for Q4 was 2.9 Singapore cents, down from 22.59 Singapore cents for the year-ago period.

Fourth-quarter revenue was 45.6 per cent lower at S$53.17 million.

Full-year net profit fell 64.8 per cent to S$22.08 million.

Other income for Q4 was S$1.7 million compared to S$53.2 million for a year-ago period. The firm said that the decrease was due mainly to the absence of an exceptional gain of S$49.8 million on re-measurement of investment to fair value upon ceasing equity accounting in joint ventures recorded the year before.

Its construction order book stands at about S$376.1 million as at Sept 30, including projects to be delivered till the end of FY2021.

"The construction industry has been undergoing a difficult time. Going forward, our emphasis will continue to be on securing more commercial, industrial and institutional projects; and we are optimistic of a pick-up in the private residential sector, given the large number of en-bloc acquisitions," it remarked.

Of the two property developments on hand, the firm said, it has sold over 85 per cent of the Seaside Residences condominium and intends to launch the Matter Road condominium in the first half of next year.

It declared an interim dividend per share of 0.5 Singapore cents, up from 0.25 Singapore cents for the previous year.