Koh Brothers

Koh Brothers: 3Q13 net profit slipped 6% y/y to $6.9m despite revenue boost of 24% to $91.8m, mainly due to the lack of a $3.5m write-back of provision on disposal of subsidiaries this quarter and lower gross profit margin of 14.2% (-4ppts) on the back of a change in sales mix. The growth in top line was achieved on the back of a 111% surge in the construction and building material division to $30.7m. Group expect the level of construction activity to be sustained, although citing the competitive environment and shortage of labour. Koh Brothers trades at a 9M13 annualized P/E of 6.8x.