Keong Hong (5TT) Q3 2026 earnings summary

Executive summary

• 9MFY2026 revenue fell 56.3% YoY to S$68.5m as completed projects and fewer ongoing jobs reduced activity; net loss was S$1.4m versus S$5.7m profit a year earlier.

• 3QFY2026 returned to a net profit of S$1.3m from a S$1.8m loss in 3QFY2025, while revenue declined 30.0% YoY to S$23.7m.

• Construction order book was S$217m at 30 June 2026; no dividend was recommended, with cash conservation cited as important to sustaining operations.

Financial highlights

• 9MFY2026 gross profit declined 81.2% YoY to S$2.3m; gross margin was 3.3%, down from 7.7%, amid residual costs and defects rectification on completed projects.

• 3QFY2026 gross profit was S$3.0m versus S$4.1m YoY; gross margin improved to 12.5% from 12.1%.

• 9MFY2026 other income fell 59.2% YoY to S$3.8m; lower associate interest income, scrap sales and disposal gains were partly offset by a S$0.7m project milestone incentive.

• 9MFY2026 administrative expenses decreased 28.6% YoY to S$5.7m; finance costs fell 34.8% to S$0.8m, reflecting lower borrowings and interest rates.

• 9MFY2026 basic and diluted EPS was a loss of 0.59 cents versus earnings of 2.43 cents; 3QFY2026 EPS was 0.54 cents versus a loss of 0.75 cents.

Outlook and guidance

• The pipeline includes Solitaire on Cecil, Tengah Plantation BTO and Serra Residences; active tendering for new building contracts is planned to strengthen and broaden the pipeline.

• Plans include seeking partnerships with established developers for land acquisitions and property development projects.

• Management intends to remain prudent, prioritise productivity and efficiency, and pursue opportunities to expand and diversify amid global uncertainty.