KSH Holdings reported 4QFY14 PATMI of S$11.0m, down 28% YoY mostly due to weaker contributions from the property development segment. Full year FY14 PATMI cumulated to S$44.5m, which increased 18% and constituted 92% of our full year forecast. While FY14 earnings reflected decent growth, it is slightly below our expectations due to slower-than-anticipated progressive recognition at development projects over the fourth quarter. In terms of the topline, FY14 revenues increased 40.1% to S$324.5m as we saw stronger contributions from the construction segment (up 38.6%), the development segment (up 62.9%) and rental income from investment properties (up 13.5%) as well. The group also proposed a final dividend of 1.75 S-cents. Maintain BUY. After updating our model for latest assumptions, our fair value estimate slips to S$0.71 from S$0.73 previously.
FY14 PATMI up 18% YoY
KSH Holdings reported 4QFY14 PATMI of S$11.0m, down 28% YoY mostly due to weaker contributions from the property development segment. Full year FY14 PATMI cumulated to S$44.5m, which increased 18% and constituted 92% of our full year forecast. While FY14 earnings reflected decent growth, it is slightly below our expectations due to slower-than-anticipated progressive recognition at development projects over the fourth quarter. In terms of the topline, FY14 revenues increased 40.1% to S$324.5m as we saw stronger contributions from the construction segment (up 38.6%), the development segment (up 62.9%) and rental income from investment properties (up 13.5%) as well. The group also proposed a final dividend of 1.75 S-cents.
Firm order book of S$410m
As at end FY14, the group has an outstanding order book of S$410m. Given headwinds in the domestic residential sector, we understand that KSH expects private construction demand to slow ahead but aims to further diversify their order book with more public projects over the longer term. The last two contracts won were worth S$42.5m (United World College of South East Asia) in Dec-13 and S$76.9m (KAP Residences) in Feb-14.
About 200 units sold at Sequoia Mansions
At KSH’s 45%-owned Sequoia Mansions (Beijing, China), about 200 units out of 373 residential units have been sold to date. Average selling prices have been healthy, at ~ RMB 25k sqm, and we understand the commercial components will be launched after the project’s anticipated TOP in mid-2015.
Maintain BUY with lower FV estimate of S$0.71
KSH now holds S$142.4m in cash and equivalents with a low net gearing of 1%, and management continues to seek accretive acquisition opportunities. Already, the group has acquired land bank in Negeri Selangor, Malaysia and a 28% stake in Prudential Tower in Raffles Place. Maintain BUY. After updating our model for latest assumptions, our fair value estimate slips to S$0.71 from S$0.73 previously.
KSH Holdings reported 4QFY14 PATMI of S$11.0m, down 28% YoY mostly due to weaker contributions from the property development segment. Full year FY14 PATMI cumulated to S$44.5m, which increased 18% and constituted 92% of our full year forecast. While FY14 earnings reflected decent growth, it is slightly below our expectations due to slower-than-anticipated progressive recognition at development projects over the fourth quarter. In terms of the topline, FY14 revenues increased 40.1% to S$324.5m as we saw stronger contributions from the construction segment (up 38.6%), the development segment (up 62.9%) and rental income from investment properties (up 13.5%) as well. The group also proposed a final dividend of 1.75 S-cents.
Firm order book of S$410m
As at end FY14, the group has an outstanding order book of S$410m. Given headwinds in the domestic residential sector, we understand that KSH expects private construction demand to slow ahead but aims to further diversify their order book with more public projects over the longer term. The last two contracts won were worth S$42.5m (United World College of South East Asia) in Dec-13 and S$76.9m (KAP Residences) in Feb-14.
About 200 units sold at Sequoia Mansions
At KSH’s 45%-owned Sequoia Mansions (Beijing, China), about 200 units out of 373 residential units have been sold to date. Average selling prices have been healthy, at ~ RMB 25k sqm, and we understand the commercial components will be launched after the project’s anticipated TOP in mid-2015.
Maintain BUY with lower FV estimate of S$0.71
KSH now holds S$142.4m in cash and equivalents with a low net gearing of 1%, and management continues to seek accretive acquisition opportunities. Already, the group has acquired land bank in Negeri Selangor, Malaysia and a 28% stake in Prudential Tower in Raffles Place. Maintain BUY. After updating our model for latest assumptions, our fair value estimate slips to S$0.71 from S$0.73 previously.
No comments:
Post a Comment