The bottomline miss comes due to higher construction costs and lower profit from operations before share of results from associates and joint ventures (JVs), on top of a nine percentage-point y-o-y drop in FY19 operating profit margins to 11%, says analyst Deborah Ong in a Monday note.
SINGAPORE (June 3): OCBC Investment Research is ceasing coverage on KSH Holdings, citing “reallocation to resources” after the construction group’s latest set of financial results missed expectations on the back of poorer-than-expected margins.
To recap, KSH last week posted 74.8% lower FY19 earnings of $7.7 million after factoring in International Financial Reporting Standards (IFRS) changes – without which OCBC estimates PATMI would have been $12 million higher, or 63% of the research house’s initial full-year forecast.
