Keong Hong warns of expected H1 net loss, blames virus-related business conditions

MAINBOARD-LISTED construction player Keong Hong Holdings is warning of an expected net loss for the 6 months to Mar 31, 2022, the board said in a profit guidance on Thursday (May 5).

The expected first-half net loss was attributed “mainly to the continuation of labour shortages and rising business costs due to the Covid-19 pandemic”, according to the bourse filing.

Keong Hong, which sank into the red in FY2020, had most recently reported a net loss of S$16.9 million for its financial year ended Sep 30, 2021.

Still, the company said in a statement in March that it was “poised for recovery and ready for opportunities”, with an order book of S$482 million, after the close of a mandatory conditional cash offer by controlling shareholder LJHB Holdings.

The board said that Keong Hong is finalising its first-half results, which will be out by May 15, 2022. Shareholders and potential investors are advised to exercise caution when dealing in its shares.

Shares of Keong Hong last traded on May 4 at S$0.375, before the latest update.