Koh Brothers managing director and CEO reports a gradual recovery in construction activity since last year

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Koh Brothers Group has reported earnings of $5 million in the 1HFY2022 that ended in June. This is which is up by 151% over the previous year’s $2 million.
The revenue in the same time period increased by 13% year-over-year to $158.9 million because of higher revenue recognition from its real estate and construction business.

In addition, with an increase in construction activity due to the outbreak and the company’s report of an operating profit of $11.7 million, an increase of 43% year-over-year. The gross margin grew by 7.4% from 7.4% from 5.8% in the 1HFY2021.

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

At the end of June the balance of cash and bank accounts were $103.9 million. Current ratio of 1.7x with a net gearing ratio 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 increasing productivity through embracing the latest technology and innovations, as well as adopting cost discipline and financial management strategies to tackle challenges better due to an environment that is competitive, labor shortages, energy consumption and the cost for construction.” He says.

“We will continue to draw on our track record of success and know-how to bid for larger and more valuable construction projects, as demand for both private and public construction projects increases,” adds Koh.

The company anticipates for the industry of construction to “remain difficult” due to increased competition, disruptions to supply chains human resource issues, rising material and energy costs.

Koh says that the sale of the Van Holland residential project continues 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%.