KSH reports higher 2Q earnings of $6 mil on higher topline plus results from associates

SINGAPORE (Nov 12): KSH Holdings reported 2Q20 ended Sept earnings of nearly $6 million compared to $1.8 million a year ago amid higher development sales and share of results of associates and joint ventures.

KSH’s fully diluted 2Q20 earnings per share increased to 1.05 cents compared to 0.32 cent in 2Q19 while net asset value per share as at Sept 30 came in at 57.61 cents.

For 1H20, the developer achieved a 66.4% increase in total revenue to $126.6 million from $76.1 million a year ago while earnings rose 51.6% to $11.1 million compared to $7.3 million in 1H19.

The group has proposed an interim cash dividend of 1 cent per share.

In 2Q20, revenue grew 67% to $58.8 million from $35.2 million a year ago. This comprised of a 70% growth in project revenue to $57.3 million and a 3.7% growth in rental income from investment properties to $1.5 million. Meanwhile, other income grew 12.4% to $2.9 million.

With costs rising 65.2% to 60.4 million, 2Q20 profit from operations before share of results of associates and JVs came in at $1.27 million, 4.1% higher y-o-y.

Share of results of associates and JVs increased to $5.3 million in 2Q20, from $0.9 million in 2Q19, mainly due to sales and progress in construction from developments Affinity@Serangoon, Riverfront Residence and Park Colonial in Singapore.

As at Sept 30, KSH has cash and bank balances of $73.6 million while order book remains healthy at more than $351.4 million.

In China, the group’s 22.5%-owned associate, Gaobeidian City KAP Real Estate Development Co., recently launched 216 residential units in Phase 1 of Stage 1 of the residential development project, Sino-Singapore Health City, in Gaobeidian, in Hebei province. Gaobeidian is near to Beijing, other main cities and the newly proposed special economic zone, Xiong’an New Area.

See: KSH sets its sights on Gaobeidian bonanza

See also: KSH, Oxley, Heeton and Lian Beng invest $30 mil in Gaobeidian project developer

See also: Heeton-KSH-Oxley-SLB JV delays Nov launch of Gaobeidian project amid trade war

In Singapore, the company has also sold more than 2,550 units at Affinity@Serangoon, Riverfront Residences, Park Colonial and Rezi 24.

Year to date, shares in KSH are down 0.5 cent at 47 cents.