Background: KSH Holdings is a construction and property development company with operations in Singapore, Malaysia and China. In Singapore, it takes on projects in both the public and private sectors. The company also engages in property development through joint ventures and currently co‐owns seven residential sites.
Recent development: KSH was awarded a contract worth $49.9m from Mount Alvernia Hospital to work on additions and alterations, as well as to build a new medical block. Its outstanding orderbook is thus boosted to $385.0m, which should last until May 2014.
Our view
Successfully garnered high‐end luxury projects. Private residential projects contribute to 76.9% of KSH’s orderbook. Year‐to‐date, the company has won two condominium contracts, Eight Courtyards and Ardmore Three, worth $78.8m and $138.m, respectively. It is also involved in the construction of Centennia Suites, Madison Residences and Watten Residences. The company is expected to actively bid for both private and public projects, given the strong supply of flats launched this year.
Landbank progress strong. KSH was part of a consortium that bought Hong Leong Garden Shopping Centre for $171.1m, of which it will have a 12.25% stake. The project will be funded internally via cash and loans. This brings the company’s landbank to 269,223 sq ft of GFA. Its recent launch of Lincoln Suites, Cityscape@Farrer Park and The Boutiq saw strong uptake, with the projects having sold 78%, 20%, and 70%, respectively.
Stronger balance sheet. Currently, KSH is far from its 2009 trough of $0.077. Compared with 2009, the company now has a stronger balance street with almost zero net gearing and a healthy landbank. In addition to trading at 37% below book value, it is relatively cheap compared with its peers’ P/B at 0.8x.
Key ratios…
Price‐to‐earnings: 3.1x
Price‐to‐NTA: 0.55x
Dividend per share / yield: $0.02 / 9.6%
Net cash (debt) per share: ($0.003)
Share price S$0.205
Issued shares (m) 343.7
Market cap (S$m) 70.6
Free float (%) 37%
Recent fundraising activities Mar 09 – warrants issue 1‐for‐1 at $0.01; warrants are convertible to share at $0.10 1‐for‐1
Financial YE 31 March
Major shareholders Choo Chee Onn – 20.3%; Tok Cheng Hoe – 15.6%; Lim Kee Seng – 15.6%; Kwok Ngat Khow – 15.6%
YTD change ‐16.1%
52‐wk price range S$0.20‐0.29
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