Koh Brothers H1 net profit rises 151% to S$5m

Aug 07, 2022

Construction, property development and specialist engineering solutions provider Koh Brothers Group has posted a 151 per cent increase in net profit to S$5.0 million for the first half ended June 2022 from a S$2.0 million net profit in the year-ago period.

Revenue for the 6-month period rose 13 per cent to S$158.9 million — driven mainly by increased construction activities and sales of its Van Holland private residential project in Singapore, the group said on Saturday (Aug 6).

The group saw a 18 per cent increase in other gains to S$7.9 million in H1 2022, mainly due to higher gain recognised from the disposal of property, plant and equipment, and partially offset by lower fair value gain from investment properties.

However, share of profit of associated companies and joint ventures fell 20 per cent to S$1.2 million in H1 2022; this was due mainly to the absence of contribution from a property development project in South Korea that was completed last year.

Earnings per share rose to 1.21 cents for H1 2022 from 0.48 cent in H1 2021. Net asset value per share rose to 70.31 cents as at Jun 30, 2022 from 69.61 cents as at Dec 31, 2021.

The counter ended 4.43 per cent higher on Friday at 16.5 Singapore cents.

Koh Brothers’ managing director and group CEO, Francis Koh, said: “We are pleased with our top and bottomline improvements, well-supported by both our construction and building materials, and real estate divisions.

“We have seen a gradual recovery in construction activity since last year, and supported by the relaxation of border restrictions on the inflow of manpower.”

On the group’s property development business, Koh said: “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.”

There will be no interim dividend as was the case for H1 2021.

Separately, the group’s Catalist-listed sustainable engineering solutions unit, Koh Brothers Eco Engineering, posted a 2 per cent dip in net profit to S$1.17 million for H1 2022 from S$1.20 million in H1 2021. Revenue slipped 7 per cent to S$101.9 million; this was mainly due to decrease in revenue recognition from the engineering and construction division.

https://www.businesstimes.com.sg/com...ses-151-to-s5m