Keong Hong

Keong Hong: FY14 net profit slipped 10% to $19.7m, even though revenue soared 86% to $272.8m on recognition of ongoing and new projects such as Alexandra Central, J Gateway and Skypark Residences. Gross margin contracted 9.6% due to higher project costs recognized during initial stages of construction. Bottom line was further weighed by other operational costs. Final DPS of 1.25¢, brings full year DPS to 2.25¢ (FY13: 2.5¢). Keong Hong’s order book currently stands at $463m. Apart from abovementioned names, pipeline projects include Twin Waterfalls and the 378-unit executive condominium at Edgedale Plains. Aside, Keong Hong has diversified its efforts overseas. The lease agreements it has entered with the Maldives government to operate the Kooddoo Domestic Airport, a hotel and a resort will provide diversified revenue streams amid a tepid property outlook in Singapore, compounded by labor cost pains. Keong Hong trades at 1.14 P/B and 3.5x FY14 P/E