Koh Brothers Group (K75) H1 2024 earnings summary

Executive summary

• 1H 2024 revenue declined to S$112.91 million from S$196.59 million after construction and property project completions; gross profit turned positive at S$6.39 million from a S$1.06 million loss, and net loss attributable to equity holders narrowed to S$7.18 million from S$16.04 million.

• Priority remains smooth delivery of the S$540.8 million construction order book, including Circle Line 6, Deep Tunnel Sewerage System Phase 2 and Tuas Water Reclamation Plant.

Financial highlights

• Loss before tax narrowed to S$8.94 million from S$19.46 million; loss after tax was S$10.45 million versus S$19.62 million.

• Other income rose to S$1.06 million, mainly on higher interest income; other gains fell to S$0.53 million on lower FX gains and a property fair value loss.

• Share of profit from associates and joint ventures was S$1.28 million versus a S$0.06 million loss, driven by Real Estate joint ventures.

• Operating cash flow was S$47.03 million versus S$26.73 million, mainly from proceeds of completed development projects; cash and bank balances ended at S$96.64 million.

Outlook and guidance

• Singapore construction demand is projected at S$32–38 billion in 2024, including S$18–21 billion from the public sector; BCA projects S$31–38 billion annually for 2025–2028.

• Tender selectively, monitor project progress and costs, and pursue recovery of variation-order costs; land-bank expansion will remain prudent and selective.