KSH Holdings is a construction and property development company established in 1979 and listed in SGX since Feb-2007. The firm is A1-graded for construction and A2 for civil engineering contractor for public sector projects in Singapore.
On-going property development projects in Singapore are: Rezi 35, Rezi 24, Park Colonial, Affinity@Serangoon and Riverfront Residences. $416M progress billings are expected to be recognised from 2022.
Sino-Singapore Health City in Gaobeidian China is expected to be profitable in FY22.
Under property investment, the group have invested in a 36-storey retail-office complex Tainxing Riverfront Square in Tianjin China.
Through joint ventures, KSH have acquired properties in U.K., Australia, Malaysia and Japan.
Construction constitute about 97% of revenue, has been weak since peaking in FY14. Gross & operating margin weakened from FY19. Compounded by Covid-19 pandemic, the company reported a loss of $3.9M in FY21. Fair value assets adjustment were other reasons for poor performance namely:
$7.9M for oversea properties
$3.8M loss from associates hotel operations & development
Order-book improved substantially from 1H20 low of $351M to $522M in 1H22.
Balance sheet health is moderate with total debt of $129M supported by cash & equivalent of $140M.
Construction earning will be challenged by higher labour, material and compliance cost despite improving order-book. New contracts should be supportive of earning against a highly competitive environment.
Residential properties demand in Singapore remained tight and should be earning accretive.
Tianjin Tainting Riverfront Square in China will be challenging due to pandemic zero Covid-19 policy and low occupancy rate of 67%.