KSH posts 47.6% rise in full-year earnings on back of Beijing project

A SPIKE in the share of results of associates - due mainly to sales revenue recognised upon completion of a property project in Beijing - has pushed KSH Holdings' net profit up by 47.6 per cent to S$61.5 million for the financial year ended March 31.

The completion of the Liang Jing Ming Ju Phase Four Sequoia Mansion project in Beijing, which contributed S$15.0 million to the firm's sales revenue, helped to boost the firm's share of results of associates by 82.8 per cent to S$48.4 million, KSH said in a Singapore Exchange filing on Monday.

Turnover for the year dipped by 0.3 per cent to S$245.5 million, as compared with S$246.1 million in the preceding year.

Construction revenue dipped 0.3 per cent to S$239.2 million while rental income from investment properties rose 1.5 per cent to S$6.3 million across the comparative periods, KSH said.

Earnings per share rose to 13.72 Singapore cents, up from 9.18 Singapore cents a year ago.

Net asset value per share increased to 65.44 Singapore cents from 55.79 Singapore cents.

A final dividend of 1.5 Singapore cents and a special cash dividend of 0.5 Singapore cent per share have been declared, for a total payout of two Singapore cents per share.

This brings the total dividends declared in FY2016 to 3.55 Singapore cents per share - due to a dividend payout of 1.55 Singapore cents per share in December last year - up from 2.75 Singapore cents per share a year ago.

Noting that construction costs are still expected to increase amid tightening manpower policies, KSH Holdings executive chairman and managing director Choo Chee Onn said: "We've diversified our portfolio overseas to capitalise on favourable market cycles abroad, many of which are yield-accretive assets that will contribute healthy recurring income.

"We'll continue to seek attractive investment opportunities both in Singapore and abroad to enhance shareholder value."