This construction company has a good two years ahead of it

SINGAPORE (Nov 15): UOB Kay Hian is maintaining its “buy” recommendation for KSH Holdings, after the construction and property development company was awarded a $139.1 million landmark contract.

UOB Kay Hian’s Edison Chen believes the contract is linked to Lendlease’s Paya Lebar Quarter, which has seven buildings, including residential units, 1 million sq ft of office space, and 340,000 sq ft of retail space. KSH is expected to be involved in the construction of the residential portion.

“The $139.1 million landmark contract will boost KSH’s orderbook significantly and we expect its involvement in this project would bring in more opportunities within the project compound and serve as testament to KSH’s construction capabilities,” said Chen in a note on Tuesday, adding that the project is expected to commence in Feb 2017.

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