KSH

KSH: 3QFY14 net profit climbed 22% y/y to $9.9m while revenue soared 78.4% to $93.2m, mainly due to a 67.9% increase in construction business to $82m, while sales of development property increased 344.8% to $9.6m. Rental income from investment properties rose 30% to $1.6m. Apart from cost of construction which rose in tandem with increased topline, operating expenses decreased in general. Share of associate’s profits was up 51.8% to $6.4m buoying bottomline. Orderbook remains healthy, at $385m at end Dec’13, and has kickstarted its $300m multicurrency MTN with the inaugural issue of $75m 5.25% Fixed Rate Notes in Nov’13. It’s associate has also recently agreed to acquire freehold land totaling 679,460 sf in Klang, Selangor, which may be potentially developed in to a mixed development, forming part of a proposed business park. NAV at end Dec was 49.99¢, translating to P/B of ~1x