KSH Holdings Ltd (ER0.SI), a Singapore-based investment holding, is engaged in construction, property development and management, and property investments for public and private sectors. Incorporated in 1979 KSH Holdings is listed on the Mainboard of the SGX-ST since February 2007. KSH’s shares can furthermore be traded in Germany.
Through strategic alliances and joint ventures the group’s property development and investment presence spans across various real estate sectors including residential, commercial, hospitality, and mixed-use developments in Singapore and in China. KSH is also a BCA A1/A2-graded contractor in Singapore with the ability to tender for public sector construction projects of unlimited value and for public civil engineering projects for values of up to 90m SGD. Leveraging on this BCA grade and its strong balance sheet, the group has built a solid track record over the past 37 years. The group won several BCA Construction Excellence Awards for its projects such as for the Fullerton Bay Hotel, for the NUS University Town’s Education Resource Centre and for the Madison Residences.
The group has jointly acquired properties in other geographies including the United Kingdom, Australia, Malaysia and Japan in order to tackle with the downturn of Singapore’s property market and to diversify its geographical risks. Further growth opportunities are sought from exploring new geographies with favorable real estate cycles.
KSH shows a solid balance sheet, low receivables risk and a strong credit history that gives the group a competitive advantage in accessing fresh capital. KSH has a strong order book with projects worth around 223m SGD in the pipeline.
542 employees generate revenues of 245.5m SGD and profits of 61.9m SGD. A slight dip of 0.3% in revenues is turned into a strong increase in profits of 47% compared to a year ago. Net profit margin of 25% is well above industry average. KSH is going to distribute a total dividend of 0.0355 SGD for the fiscal year 2016, yielding 6.5%. KSH’s shares have spiked in 2012/2013 but traded almost flat since. KSH should be a solid investment with moderate downside risks and a good dividend income. With shares currently priced at only 4 times its earnings the company is due to awake from its deep slumber.
AIS Rating: ★★★★☆
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |
|---|---|---|---|---|---|---|
| EPS (SGDcents) | 6.63 | 4.81 | 9.48 | 10.81 | 9.18 | 13.72 |
| Change | 7% | -27% | 97% | 14% | -15% | 49% |
| P/E | P/E Industry |
P/B | P/CF | Equity Ratio |
ROE | Debt/ Equity |
Div YLD |
|---|---|---|---|---|---|---|---|
| 4 | 26 | 0.8 | 3.9 | 53% | 23% | 48% | 4.8% |
