SINGAPORE (Nov 16): OCBC Investment Research is maintaining its “hold” call on KSH Holdings with a higher fair value estimate of 79 cents after updating its valuation model for the latest results and assumptions.
This comes after the construction and property group last week reported a set of 1H18 earnings which came in broadly in line with its estimates.
See: KSH Holdings 2Q earnings halve to $4.1 mil on lower revenue
In a Wednesday report, lead analyst Eli Lee notes stronger performance from the group’s Tianjin Tianxing Riverfront Square commercial property investment in China, as well as improving construction margins reflected over the half-year in review.
In particular, Lee highlights the management’s belief that KSH is poised to take advantage of the turnaround in the Singapore real estate sector – especially after recently replenishing its land bank with the joint acquisition of Serangoon Ville in the Bidadari Estate as well as Rio Casa in Hougang.
“In Australia, the group has, together with its partners, sold its St Kilda Road property in Melbourne for A$34.0 million and will recognise its share of profits before the end of this financial year, subject to legal completion of the transaction,” says Lee.
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“In the UK, KSH has begun the first phase of its township development in Leeds and also acquired an four-storey Dry Bar terraced building in Manchester for conversion into a new boutique hotel,” he adds.
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As at 10.14am, shares in KSH are trading 1 cent higher at 84 cents, or 12.3 times FY18 earnings.
