Moving forward, KSH’s construction margins are expected to improve, thereby boosting its earnings to between $17 million to $21 million over the next two years, the analysts estimate. The earnings expectations puts KSH’s forward P/E at 13 times and its prospective P/E at 11 times.
Lim & Tan Securities analysts Linus Loo and Chan En Jie have initiated “accumulate” on Mainboard-listed contractor and developer KSH Holdings, which they believe is an “under-looked beneficiary” of the construction recovery in Singapore.
In their Oct 27 report, Loo and Chan note that KSH’s construction business has returned to positive gross margins in FY2025 after completing its projects during the Covid-19 pandemic. These projects had been impacted by deteriorating and negative margins partly due to escalating costs amid legacy projects.
