SINGAPORE (Nov 28): Keong Hong Holdings, the property developer and builder, reported 4Q18 earnings fell 86.9% to $6.8 million compared to $52.1 million in 4Q17.
This brings FY18 earning to $22.1 million, 64.8% lower than $62.7 million in FY17.
During the quarter, revenue decreased 45.6% to $53.2 million from $97.7 million a year ago, mainly due to lower contribution from the group’s construction projects as some of the projects, such as Parc Life and Raffles Hospital Extension had largely been completed in the previous financial year.
The decrease in revenue was partially offset by higher revenue contribution from the construction of Seaside Residences condominium and National Skin Centre.
As cost of sales saw a 55.4% y-o-y decrease to $38.6 million, gross profit for 4Q18 came in 28.7% higher at $14.6 million.
Other income plunged 96.8% to $1.68 million from $53.2 million a year ago, due mainly to the absence of an exceptional gain of $49.8 million on re-measurement of investment to fair value upon ceasing equity accounting in JVs recorded in 4Q17.
Share of losses from associates widened to $3.54 million from $0.58 million last year.
However, share of results of joint ventures made a gain of $4.0 million compared to a loss of $0.68 million a year ago.
As at end Sept, the group’s cash and cash equivalents stood at $73.4 million.
The group has declared a final dividend of 2.0 cents per share.
The group’s current construction projects pipeline consists of Pullman Maldives Maamutaa Resort, Seaside Residences condominium, Mattar Road condominium and National Skin Centre. Its construction order book as at end-Sept stood at about $376.1 million.
Ronald Leo, chairman and CEO of Keong Hong, says, “The construction industry has been undergoing a difficult time, weighed down by weakness in both private and public-sector construction activities. We see headwinds in the short term as prices of raw materials have increased and market sentiment has turned cautious given the recent round of cooling measures and uncertainty in the economic outlook. As we move forward to a new financial year, Keong Hong remains optimistic and vigilant and is leveraging on technology and innovation to stay ahead.”
Shares in Keong Hong last traded at 50 cents on Tuesday.
