In a Feb 10 report, Chen says KSH’s results should catch up in 4Q.
“3QFY17 was also a little slow as the Singapore residential market continued its woes, but there have been recent signs of stability,” Chen adds.
Chen also notes that KSH’s construction margin has improved to 23.1%, from 21.5%. This demonstrates KSH’s “ability to manage costs through enhanced productivity and technology adoption,” he says.
In addition, contribution from KSH’s partial disposal of its stake in Prudential Tower, which was expected in 3Q, was delayed to the next quarter.
Meanwhile, Chen says KSH sold around 95.6% of launch units in its property inventory during the quarter, improving on the 94.2% achieved in the previous quarter.
“Hence, it has a balance amount of shared revenue of approximately $196.0 million to be progressively recognised, underpinning the group’s shared profits for the next two years,” Chen says.
Going forward, Chen adds that KSH’s pool of property development revenue is also likely to be supported by sales of its Gaobeidian project, which has commenced.
As at 4.18pm, KSH Holdings is trading flat at 54 cents.
