SINGAPORE (Aug 7): Construction and property development group Keong Hong Holdings posted earnings of $4.1 million for the 3Q19 ended June, falling 51.7% from $8.6 million a year ago.
This translated to fully diluted earnings per share of 1.76 cents for 3Q19, compared to EPS of 3.65 cents in 3Q18.
3Q19 revenue rose 18.3% to $47.9 million, from $40.5 million a year ago.
The increase was mainly due to higher revenue contribution from the construction of Seaside Residences condominium at Siglap and Pullman Maamutaa resort in Maldives.
Further, revenue was boosted by the construction of National Skin Centre and The Antares condominium at Mattar Road, which commenced in 1H19.
However, gross profit fell 34.6% to $3.0 million, as cost of sales jumped 25.0% to $44.9 million, outpacing the rise in revenue. The group recorded a gross profit margin of 6.2% in 3Q19.
As at end June, cash and cash equivalents stood at $56.6 million.
The group’s construction order book stood at approximately $267 million as at June 30, 2019.
Looking ahead, the group says the construction sector is expected to face headwinds in the medium term, against the backdrop of a slower economic growth and continued global uncertainty.
The group says its Seaside Residences project has attained sales of more than 90% to-date, while sales of The Antares condominium is expected to be launched in 4Q19.
Meanwhile, it is preparing for the opening of Pullman Maldives Maamutaa Resort, which is expected to be operational within the next two to three months.
Shares in Keong Hong closed flat at 45.5 cents on Wednesday before the results announcement.
