Koh Brothers reports a gradual recovery of 151% y-o-y earnings in construction activity

Koh Brothers Group has reported profits of $5 million for 1HFY2022 that ended in June. This is which is up 150% from the previous year’s $2 million. The same time, revenue increased by 13% from a year ago to $158.9 million because of higher revenue recognition from its real estate and construction business.

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In addition to a rise in construction activity due to the outbreak The company also reported an operating profit of $11.7 million, which was up 43% year-over-year. The margin for gross profit increased by 7.4% from 7.4% from 5.8% in the 1HFY2021.

Koh Brothers enjoyed other gains of $7.9 million through the sales of property as well as plant and equipment. The gain was partly offset by the lower gains at fair value from the investment properties.

At the end of June the balance of cash and bank accounts were $103.9 million. Current ratio is 1.7x with a net gearing rate of 0.8x.

Francis Koh, the company’s managing director and group CEO, says there’s been a slow recovery in construction activity from last year.

“We remain focused on improving productivity by taking advantage of the latest technology and innovations, as well as adopting cost discipline and financial management strategies to manage the challenges that arise due to an environment that is competitive, labor shortages, energy consumption and cost of construction,” He says.

“We will keep leveraging our long-standing track record and experience to compete for larger and more valuable construction projects, as demand for private and public construction projects increases,” adds Koh.

The company anticipates that it will “remain difficult” with a tougher competition, disruptions to supply chains and manpower issues, as well as higher cost of materials and energy.

Koh says that the sale of the Van Holland residential project have 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 August 5 the 5th of August, in the range of 4.43%.