KSH Holdings

KSH Holdings reported 3QFY14 net profit of S$9.9m, up 22% YoY, mostly due to increased contributions from the construction and property development segments. 9MFY14 PATMI cumulates to S$33.5m, up 50.3%, and makes up 69% of OCBC’s full year forecast. The house judge this to be mostly within expectations, and anticipate a back-loaded year in terms of revenue recognition from construction and development projects. In Jan-14, the group launched its 45%-owned Beijing condo project (Liang Jing Ming Ju Phase 4) and saw a strong performance. Over 60% of the residential units (comprising a total net sellable area of 31.4k sqm) were sold at average prices of RMB 23.5k psm – higher than previously anticipated – and the house expect this project’s contribution to drive continued earnings growth in FY15 as it achieves TOP. Maintain BUY with an unchanged fair value estimate of $0.73