KSH Holdings H2 net profit soars to S$14.5m after share of results from associates, JVs
KSH Holdings posted second-half net profit of S$14.5 million on Friday (May 27), up from S$269,000 year on year, after shares of results of associates and joint ventures hit S$19 million compared with a S$2.6 million loss a year ago.
This was mainly due to the progress of completion of property development projects in Singapore and revaluation gain of hotel properties owned by associated companies, compared to the share of losses recorded in the previous financial year.
Revenue for the period ended Mar 31, 2022 rose 5 per cent to S$124.5 million, following an increase in revenue from the construction business as the group recovered from the Covid-19 impact. Rental income from investment properties also improved in China.
Earnings per share was 2.57 Singapore cents compared with 0.05 cent a year ago.
KSH is proposing a final dividend of 1 Singapore cent per share, unchanged from a year ago.
For the full year, the group reversed from a loss of S$3.8 million to post net profit of S$24.3 million. This was also driven by the share of results from associates and joint ventures, and higher revenue.
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Revenue was up 55.6 per cent to S$238.2 million following the resumption of construction activities.
Choo Chee Onn, executive chairman and managing director of KSH, said the group has an order book of more than S$530 million at the beginning of April after being awarded a new private construction project last month.
“We have achieved good sales for our developments in both Singapore and the PRC, with most of the projects either fully or almost fully sold to date. We have over S$212.0 million of attributable share of progress billings to be recognised as sales revenue, which will contribute positively to the group’s results post FY2022,” Choo added.
He said the recent en bloc of Peace Centre represents a strategic opportunity for KSH to acquire a prominent District 9 site for redevelopment.
In the construction business, the largest revenue driver for the group, costs are expected to continue increasing. The sector is still operating below pre-pandemic levels due to labour shortages.
KSH said the cost of recruiting migrant workers, and the cost of materials, machinery and transport remain high.
The counter ended at S$0.355 on Friday, up 1.43 per cent or S$0.005.
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