Keong Hong’s revenue fell in FY16, will its yields fall too?

SINGAPORE (Feb 3): For FY16, Keong Hong Holdings declared a final dividend of 3 cents per share, on top of its interim dividend of 0.5 cents. That was one cent lower than its total dividend payout in FY15 and represented a yield of 8.1%, based on Keong Hong’s closing price of 43 cents on Jan 31.

The building contractor turned developer has been paying out dividends since its initial public offer in 2011, but the recent decline in its dividend payout reflected the challenging operating environment that the company faced in the past year.

For FY2016, Keong Hong posted a 9% decline in earnings to $34.7 million. Revenue fell 12% to $248.0 million owing to lower recognition of construction revenue. Some of its projects, such as Alexandra Central Phase 2 and SkyPark Residences, had largely been completed in FY2015. Two new projects, the Raffles Hospital Extension and Parc Life, are at the initial revenue recognition stage.

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