Koon Holdings

Koon Holdings: FY12 Revenues increased 141% to 212m, net profit declined 60.2% to $3m. Decline in profits attributed to the Group's FY11 one-off gain on disposal of leasehold property and non-recurrent dividend income totaling $12.1m, which was absent in FY12; Group recognized a number of major construction projects over FY12, contributing to the 96% revenue increase in the Construction division. Also, revenue from the Property division that was acquired in July 2011 more than tripled from $7.6m to $25.1m. Recent Govt White Paper signalling an increase on infrastructure, should see housing construction demand for HDB flats, where more than 70% of a typical HDB flat is constructed using precast components, which would boost Group's Precast Division sales. As of 25 Feb 2013, the Construction and Precast division has an outstanding order book of $179m and $82.7m respectively. Group trades at 14x P/E, 0.8x P/B. Group's JV Penta-Ocena/ Hyundai/ Koon Joint Venture, has announced the JV won a project worth $40m. Project will be for the construction of container berths and stacking yards at Pasir Panjang Terminal- Phase III. Contract duration will occur for a 19-mth period, and will contribute to FY13's financials. Koon Holdings has a 20% stake in the JV.