http://www.businesstimes.com.sg/arch...bs-45-20140510

Published May 10, 2014

Koh Brothers Group Q1 profit climbs 45%

By Jacquelyn Cheok

[email protected] @JacCheokBT


STRONGER performance in its real estate division has boosted the first-quarter net profit and revenue of mainboard-listed construction and property firm Koh Brothers Group.

Yesterday, the group reported a 45 per cent rise in net profit attributable to shareholders to $4.7 million for the quarter ended March 31, 2014, up from $3.3 million a year ago.

This translated to earnings per share of 1.06 cents for the first quarter, up from the previous year's 0.71 cents.

Total sales rose by 26 per cent from $80.5 million to $101.2 million, while gross profit grew 32 per cent from $10.9 million to $14.4 million.

No dividends have been declared by the group.

"The ability to achieve good performance in our property development business - amidst challenging market conditions in the residential property market - demonstrates our ability to differentiate our attractively-located residential properties to appeal to homebuyers," said Francis Koh, managing director and group CEO of Koh Brothers Group.

He cited the group's 486-unit Parc Olympia - which was entirely sold out in less than a year after its launch in July 2012.

Mr Koh added that Koh Brothers Group's joint venture with Heeton Holdings, which won the mandate to develop an executive condominium (EC) site in Westwood Avenue in Jurong West in the first quarter of 2014, would contribute to the group's real estate division's performance in due course.

Given the limited supply of EC developments in western Singapore, in comparison to other parts of Singapore, Mr Koh said that it would enjoy strong interest from buyers, particularly public housing upgraders and first-time owner-occupiers.

Shares of Koh Brothers Group closed unchanged yesterday at $0.31.