Keong Hong net profit down 15.6% in Q1

SINGAPORE - Construction firm Keong Hong Holdings has posted a net profit of S$4.78 million in the first quarter, down 15.6 per cent from the same period a year ago.

For the three months ended Dec 31, revenue fell 6.3 per cent to S$68.6 million, on lower recognition of revenue from construction projects as a result of the completion of Twin Waterfalls and Alexandra Central Phase 2.

The two projects received their Temporary Occupation Permits (TOP) on June 2 and April 17 last year respectively. Another two new projects, Raffles Hospital Extension and Parc Life, were still at an initial revenue recognition stage, the group said.

Even so, the group achieved a slightly better gross profit margin of 10.8 per cent in the first quarter, from a year ago.

Earnings per share stood at 2.12 cents, down from 2.43 cents a year ago.

Net asset value per share was 51.19 cents as at Dec 31, up from 49.33 cents as at Sept 30 last year.

The group said in a statement to the Singapore Exchange on Wednesday (Feb 3): "We have stepped up our efforts at securing public sector works. We have specifically targeted the institutional and healthcare sector which is in line with our strategic direction to have a diversified range of construction projects, aside from residential and hotel construction.

At the end of last year, the Keong Hong's construction order book stood at about S$395 million, with a flow of activities through to the 2018 financial year.

marilee@sph.com.sg