KSH's profits climbed 165% to $11.4m

Its order book stood at $402m.

According to OCBC Investment Resarch, KSH’s 1QFY14 PATMI increased 165% YoY to S$11.4m due to stronger contributions from both the property development and construction business segments. 

Share of results of associates increased by S$6.5m YoY to S$7.8m in 1QFY14 as increasing construction progress from development property projects at the associates/JV levels converted into heavier bottomline contributions.

Here's more:

1QFY14 PATMI now constitutes 24% of our full year forecast and, this being so, we judge this set of results to be in line with expectations. Topline for the quarter came in at S$83.3m, up 51% YoY, mostly due to higher construction revenues and a larger recognition from Lincoln Suites.

Order book outlook remains stable
The group’s order book stands at S$402.0m as at end Jun 2013 which we view to be a relatively healthy level. We understand management is actively seeking more contracts.

In 2013 to date, the group replenished its order book by S$233m – higher than the S$163m total last year. From our conversations with management, we believe the outlook for the construction sector and the scope for order book replenishment remain stable given the pipeline from residential project launches over the last six months.

In terms of new contracts, the group would also pay greater attention to public sector constuction projects over the next two quarters to strengthen their track record in that space.