KSH: Reported 3Q12 results which was below expectations. Earnings miss due to no development contribution. Net profit at $3.1m, -64% YoY, due to slower construction progress and no recognition from the property development.
The BCA now forecast private construction demand to fall from S$16.8b (prelim – 2011) to $8-12b (2012). While public construction is expected to be flat YoY, public projects
have not been KSH’s focus historically and it remains to be seen whether similar margins can be maintained.
Grp also announced a 21-month $53.3m contract to construct The Boutiq in Kiliney Rd, which is owned by a JV between Tee International, Heeton Holdings and KSH. This
bumps KSH’s existing order book to S$506m.
OCBC downgrades to Hold with $0.25 TP, as house expect headwinds in the residential segment given policy impact and macro-economic uncertainties.
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