KSH Holdings’ order book could grow to S$600-S$800m

The future seems bright for KSH as its recent spate of large condominium launches, such as Luxurie, Boathouse Residences and EuHabitat could offer tender opportunities for the company.

OCBC says another source of potential contract wins could come from BTO contracts from the HDB.

Here’s more from OCBC:

Limited impact from change of contract terms. KSH recently announced changes to the Eight Courtyards contract, whereby Phase 1 (temporary site office/temporary building works) and Phase 2 (alteration/additional works to the temporary showflat and sales office) would take place from 5
Sep 11 and 7 Sep 11, respectively, to 1 Dec 11. The construction dates for the main contract would remain from 1 Dec 11 to 1 May 14. We see little impact on revenue recognition from this change and hence keep our FY12-13 forecasts intact.

Capacity for more projects. From discussions with management, we judge that KSH has the capacity to take on two to three large contracts (>S$100m) and take its order book to S$600-S$800m. Given this, we believe KSH is actively tendering for contracts while judiciously keeping to a 10% profit margin hurdle. A recent spate of large condominium launches, such as Luxurie (622 units - Keppel Land), Boathouse Residences (493 units - Fraser Centrepoint, Far East) and EuHabitat (748 units - Far East), could offer tender opportunities for KSH. Note that the last contract (Eight Courtyards) clinched by KSH was developed by Fraser Centrepoint and Far East as well and we think KSH could be invited to tender for the Boathouse and EuHabitat.

Bidding for BTO contracts. Another source of potential contract wins could come from BTO contracts from the HDB. KSH had tendered for the last BTO contract at Punggol Water Terrace with its bid 5.5% above Tiong Seng's lowest bid, which came in at $146.6m or S$182.4k per unit. As HDB goes on to supply 50,000 BTO flats over FY11-12, we expect to see continued significant contracting activity going forward and KSH would likely be actively bidding for these contracts.

Little dilution from Scrip Dividend Scheme. KSH's shares had traded at a 10%-16% discount to the S$0.245 per share issue price for the Limited Scrip Dividend Scheme applied to the final dividend over 12 Aug11 to 5 Sep11. Hence we believe that few, if any, shareholders would have elected to receive shares in lieu of cash; little or no dilution would likely occur from this development.

You're the reader we write for. You're also the person our partners want to reach.

If that sentence describes you — a founder, a C-suite, someone whose attention companies pay good money for — then you already understand why SBR works. We've spent twenty years earning the trust of readers exactly like you. Which is exactly what makes this an interesting place for your company to show up, too.

The ways it can show up are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The right fit depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If your company has something this audience should know about, we'd like to hear what you're working on.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia

Top News

30 One-Sentence Stories From People Who Have Built Better Habits

None of these stories are mine. They were sent to me by readers of Atomic Habits. My hope is that these examples will illustrate how real people are putting the book into practice. They will show you what people are actually doing to build good habits and break bad ones. And hopefully, they will spark some ideas for how you can do the same.

news conversion

SBR 5 Lorem Ipsum News 2 [8 May]

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

SBR 4 Lorem Ipsum [8 May Top Stories]