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Koh Brothers Group's net profit rises 13% to S$1.2 m
DESPITE a revenue decline, Koh Brothers Group's net profit grew 13 per cent to S$1.2 million in its first quarter of 2018.
Earnings per share increased to 0.29 Singapore cents from 0.26 Singapore cents in the year-ago period.
Revenue fell 24.4 per cent to S$67.1 million from the year-ago period due to lower percentage of revenue recognition from the construction division.
But it saw its share of result from joint ventures increase 77 per cent to S$2.51 million in Q1 2018 thanks to higher profit contribution from the cycling-themed Westwood Residences Executive Condominium (EC).
Higher interest income received from short-term investments helped bring up other income to S$1.89 million in Q1 2018 from S$0.71 million in Q1 2017.
Other expenses also decreased 90 per cent to S$210,000 in Q1 2018 from S$2.16 million in Q1 2017 mainly due to lower allowance for impairment of loans to joint ventures provided by the group.
Net asset value per share crept up to 68.9 Singapore cents as at March 31, from 68.6 Singapore cents three months ago.
Its construction order book hit a record high of S$915.9 million thanks to projects won in the last eight months - the Woodlands Health Campus (S$192 million), Deep Tunnel Sewerage System Phase 2 (S$182 million) and Circle Line 6 (S$225.4 million).
Francis Koh, managing director and group CEO, said: "Our share of these contracts amounted to a total of S$599.4 million, thus reflecting capabilities and strong competitive edge to capture opportunities amid a challenging operating environment."
He added that the group is preparing for the impending launch of residential developments after acquiring the Toho Mansion, Hollandia and Estoril sites this year.
"The expected increase in demand and pipeline of major civil engineering contracts bode well for us as we continue to tender by leveraging on our proven track record, experience and broad suite of capabilities," he said.
Koh Brothers' shares finished unchanged at S$0.31 on Tuesday.