SINGAPORE (Feb 12): Property developer and construction company Keong Hong Holdings saw its earning fall 53.6% to $1.8 million for the 1Q ended December, from $3.8 million a year ago.
This was mainly due to the absence of foreign exchange gain of $1.5 million registered a year ago, as well as higher administrative expenses.
Administrative expenses jumped 44.2% to $4.7 million in 1Q18 as a result of higher legal and professional fees, higher depreciation expense, higher staff and administrative overheads, and foreign exchange loss.
Administrative expenses also increased due to the addition of administrative expenses Hansin Timber Specialist and Trading which was acquired in Aug 2017.
1Q18 revenue fell 5.3% to $40.8 million, from $43.1 million a year ago.
This was mainly due to lower recognition of revenue from construction projects such as Parc Life, Amore and Jurong Gateway, which had been largely completed in the previous year.
Gross profit rose 15.7% to $7.5 million, as gross profit margin climbed 3.4 percentage points to 18.5% in 1Q18.
As at end December, cash and cash equivalents stood at $82.8 million.
The group’s construction order book stood at $299.7 million.
Looking ahead, Keong Hong says a more positive outlook for the property market means there are more opportunities for the group.
The group adds that it will continue to participate in government tenders for institutional and healthcare projects as well as private sector construction projects.
While Singapore’s property market outlook is expected to improve in the next few years, Keong Hong says it is mindful of the rising land prices and the buoyant collective sales market, and will remain prudent in land acquisition even as it continues to look out for viable property development and investment projects in Singapore and overseas.
Shares of Keong Hong closed flat at 60.5 cents on Monday.
