Koh Brothers Group has reported earnings of $5 million for 1HFY2022 ended June, up 151% over the year earlier’s $2 million.
Revenue in the same period was up 13% y-oy to $158.9 million, due to higher revenue recognition from its construction and real estate businesses.
Along with a pick up in construction activities from the pandemic disruptions, the company reported a gross profit of $11.7 million, up 43% y-o-y. Gross margin improved to 7.4% from 5.8% in 1HFY2021.
Koh Brothers enjoyed other gains of $7.9 million from sale of property, plant and equipment, which was somewhat offset by lower fair value gain from investment properties.
As at June 30, cash and bank balances was $103.9 million; current ratio was 1.7x with net gearing ratio of 0.8x.
Francis Koh, the company’s managing director and group CEO (picture) says there’s a gradual recovery in construction activity since last year.
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“We remain firmly focused in enhancing productivity by embracing technology and innovation, and adopting financial discipline and cost management strategies, to better manage challenges on the back of a competitive environment, labour shortages, high energy and construction costs.”
“We will also continue to leverage on our strong track record and expertise to tender for higher value and more construction projects as demand for public and private construction projects picks up,” he adds.
The company expects the construction industry to “remain challenging” with stiffer competition, supply chain disruptions, manpower woes, higher energy and materials costs.
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Koh adds that sales of its Van Holland residential project has continued to “make progress”.
“As an established, niche boutique property developer, we will continue to prudently look for opportunities to develop unique ‘lifestyle-and-theme’ projects, either independently or through partnerships with experienced partners,” he says.
Koh Brothers shares closed at 17 cents on Aug 5, up 4.43%.
