KSH posts 66% drop in Q2 profit, announces new S$139m contract

CONTRACTOR and developer KSH Holdings said on Monday its net profit for the second quarter ended Sept 30, 2016, fell 66 per cent to S$8 million, from S$23 million a year ago.

Revenue was up 10 per cent to S$68 million, from S$62 million a year ago, due to an increase from the construction business.

But share of results from associates was almost S$20 million lower compared to a year ago, mainly because at that time profit from a China project had been recognised upon construction completion.

The company also said its wholly owned subsidiary Kim Seng Heng Engineering Construction has received a letter of intent for a S$139.1 million construction contract to be awarded to build three blocks of residential towers, inclusive of basements. The project is expected to begin in February 2017.

KSH said thus its construction order book as at Nov 14 is around S$257 million.

An interim dividend of Singapore 1.25 cents per share was declared, lower than 1.55 Singapore cents a year ago.

KSH executive chairman Choo Chee Onn said while there is still no visibility on when property cooling measures will be eased, developers are comforted by the healthy take-up of recently launched projects.

"We will monitor the market closely to determine an opportune time for the launch of our future projects, including the upcoming residential project at Geylang Lorong 35, while our property investments continue to contribute healthy recurring income," he said.

KSH last traded at S$0.55, down half a cent, on Monday before results were out.