Koh Brothers Group (K75) H2 2023 earnings summary

Executive summary

• FY 2023 revenue rose 1% to S$356.2 million, while net loss attributable to shareholders was S$22.0 million versus net profit of S$6.0 million in FY 2022.

• Cash and bank balances were S$95.8 million at year-end; construction order book stood at S$583.3 million.

Financial highlights

• 2H 2023 revenue declined 18.0% YoY to S$159.7 million, mainly from lower Construction and Building Materials contribution.

• FY 2023 gross profit fell 71% to S$7.5 million from S$26.0 million, reflecting project finalisations, prolonged project timelines and higher material, manpower and subcontractor costs.

• Other gains declined 96% to S$0.60 million, mainly due to no fair value gain on investment properties and lower disposal gains on property, plant and equipment.

• Share of profit from associates and joint ventures rose 67% to S$2.7 million, driven by a fair value gain on investment property.

Outlook and guidance

• Priorities include prudent cost management, recovering variation-order costs, close monitoring of project progress and costs, and tendering for higher-value construction projects.

• A cautious approach and selective land-bank replenishment are planned; strategic partners will be pursued for value-added real estate projects.

• The construction order book and potential public- and private-sector project pipeline support cautious optimism for growth opportunities.