Koon Holdings

Koon Holdings: Wholly-owned subsidiary, Koon Construction & Transport, entered into a 20/80 JV with Penta-Ocean Construction, which clinched a $1.1b contract for land preparation works for the expansion of Changi Airport from the Ministry of Transport. The new contract substantially lifts the group's construction order book to $392m, from $81m as at 30 Jun 14. Going forward, the transport ministry is also likely to dish out other contracts pertaining to the build out of airport infrastructure. Potential beneficiaries in the running for such projects include CapitaLand, Yongnam (structural works), Hock Lian Seng (aircraft parking aprons and taxiways, Ley Choon (airfield construction) and OKP (airport runway). Over the longer term, airline services operator, SATS may benefit from the higher passenger flows through Singapore, while SIA Engineering may see upside from increased ground handling contracts, arising from the expected spike in passengers and cargo.