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Keong Hong unit to sell stake in Katong Holdings for S$34.5 million
Group intends to utilise net proceeds from the divestment for its working capital requirements and potential business opportunity
KEONG Hong Construction, a wholly owned subsidiary of Keong Hong Holdings, entered a non-binding agreement with private company MCSK for the proposed disposal of 20 per cent of the issued and paid-up share capital of Katong Holdings on Nov 8.
This entails 200,000 ordinary shares of Katong Holdings, with the consideration for the disposal set at S$34.5 million.
On Dec 3, both Keong Hong Construction and MCSK entered a further agreement to arrange a definitive sale-and-purchase agreement regarding the proposed disposal.
The construction player estimates that the total net proceeds from the divestment will be approximately S$34.3 million, after deducting estimated expenses of approximately S$200,000 from the proceeds of the proposed sale.
The consideration represents a net deficit of S$15.1 million over the aggregate book value.
The net comprehensive loss attributable to the sale shares and the sale loans is also S$15.1 million, due to the loss on de-recognition of financial assets at fair value through other comprehensive income for sale shares of S$29.8 million, offset by the gain on disposal of financial assets at fair value through profit or loss for the sale loans of S$14.7 million.
Accordingly, the loss on disposal will be S$15.1 million.
The group intends to utilise the net proceeds from the divestment for its working capital requirements and potential business opportunity.
The company&rsquo s market capitalisation is around S$18.8 million, as at the full market day preceding the date of the agreement to purchase.
Katong Holdings is a Singapore-incorporated company primarily engaged in the business of property and hotel ownership and development. It was incorporated on Feb 13, 2014.
After the substantial pared his shareholding to a Chinese party,the share price slided down enormously
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Pressing down the hsare price to privatise cheaply???
.Pressing down the hsare price to privatise cheaply???
Joelton ( Date: 07-May-2024 10:59) Posted:
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Keong Hong sounds profit warning as higher construction costs persist
Keong Hong Holdings expects to report lower earnings for 1HFY2024 ended March, no thanks to higher material and labour costs incurred in the aftermath of the pandemic.
According to the company, the higher costs have persisted into the current reporting period although the new projects awarded in 2023 have started to report
positive profit margins.
It expects to report the results on or before May 15.
Keong Hong files notice of three straight years of losses
KEONG Hong has given notice that it recorded pre-tax losses for the three most recently completed consecutive financial years, based on audited full-year consolidated accounts.
Based on a Wednesday (Mar 13) filing, the mainboard-listed construction player&rsquo s six-month average daily market capitalisation as at Mar 12 stood at S$35 million.
This marks the second year in a row that Keong Hong has filed notice of three straight years of losses.
While the company did the same in June 2023, it avoided being placed on the Singapore Exchange&rsquo s (SGX) watch list as its six-month average daily market cap as at May 31, 2023, was S$65.6 million.
According to the rules of the SGX listing manual, mainboard-listed companies will be placed on the watch list if they record pre-tax losses for the latest three consecutive and complete financial years, and if they fail to maintain an average daily market cap of at least S$40 million over the last six months.
SGX conducts quarterly reviews to identify issuers to be included on the watch list. The next review is set to take place on the first market day of June 2024.
Earlier in January, Keong Hong reported that its net loss for the financial year ended Sep 30, 2023, had widened 7.8 per cent to S$49.5 million amid rising costs in the construction sector.
This came even as its full-year revenue rose 18.9 per cent to S$176 million, as the company progressed in ongoing construction projects and saw greater productivity.
Its net loss for the six months ended Sep 30 came in at S$45.8 million, deeper than the year-ago S$35.4 million loss. Revenue for the half year fell 38 per cent to S$57.9 million.
Keong Hong&rsquo s FY2023 loss widens on higher construction costs
RISING costs in the construction sector sent mainboard-listed Keong Hong Holdings : 5TT 0% deeper into the red for FY2023.
The company saw its net loss widen 7.8 per cent to S$49.5 million for the year ended Sep 30, 2023.
On a per-share basis, Keong Hong&rsquo s FY2023 loss widened to 21.06 Singapore cents, from 19.53 cents.
This came even as its full-year revenue rose 18.9 per cent to S$176 million, as the company progressed in ongoing construction projects and saw greater productivity. It also recorded a one-off gain from the sale of two investment properties in Osaka, Japan.
Keong Hong&rsquo s net loss for the six months ended Sep 30 came in at S$45.8 million, higher than the year-ago S$35.4 million loss. Revenue for the half year fell 38 per cent to S$57.9 million.
Steeper costs
Founded in 1983, Keong Hong specialises in residential, commercial and industrial building construction. It also engages in property development and investment, and has a hotel business in the Maldives with two resorts.
The company&rsquo s construction business has had a challenging 2023, with higher costs for materials and labour, as well as employee benefit expenses. Its cost of sales rose to S$195.9 million in FY2023, from S$178.9 million in FY2022. Administrative expenses climbed 11 per cent to S$18.2 million.
Higher costs in the Maldives also weighed on the company&rsquo s full-year performance. Its associate that owns and manages an airport and hotels in the Maldives reported a wider net loss from higher finance costs and operational expenses.
As a result, Keong Hong saw a greater share of net losses from associates of S$7.8 million in FY2023, compared to S$5.5 million in FY2022.
That said, Keong Hong highlighted that combined average occupancy of its Mercure Maldives Kooddoo Hotel and Pullman Maldives Maamutaa Resort for 2023 stood at 69.2 per cent &ndash higher than the industry average of 57.6 per cent.
Challenging outlook
Despite higher manpower, fuel and utility costs, Keong Hong is positive on the outlook for the building construction sector. It will be seeking new opportunities in the healthcare and public housing segments.
Its construction order book stood at S$364 million as at Sep 30, 2023. The recent award of a tender by the Housing and Development Board for building works at Tengah Plantation will raise its order book to S$658 million residential projects form 55 per cent of the portfolio, while commercial projects make up the remainder.
With the Tengah Plantation contract, Keong Hong &ldquo will be in a stronger position as we progress into 2024&rdquo , said its chairman and chief executive Ronald Leo. He also noted that the company has secured its first mixed-use commercial construction project in the Central Business District, Solitaire on Cecil, to be completed in 2026.
On the property development and investment front, Keong Hong sees signs of deceleration in the market, with increased Additional Buyer&rsquo s Stamp Duty rates, higher costs of borrowing, a slowing global economy and weakening consumer sentiment.
But it is still on the lookout for &ldquo good value&rdquo opportunities with industry partners, albeit remaining prudent on any land acquisitions.
&ldquo While it is anticipated to be a challenging year ahead, we are cautiously optimistic that the worst is behind us,&rdquo said Leo.
Keong Hong had S$12.7 million in cash as at Sep 30, 2023, and a gearing ratio of 0.57 times.
Keong Hong&rsquo s FY2023 loss widens on higher construction costs
RISING costs in the construction sector sent mainboard-listed Keong Hong Holdings : 5TT 0% deeper into the red for FY2023.
The company saw its net loss widen 7.8 per cent to S$49.5 million for the year ended Sep 30, 2023.
On a per-share basis, Keong Hong&rsquo s FY2023 loss widened to 21.06 Singapore cents, from 19.53 cents.
This came even as its full-year revenue rose 18.9 per cent to S$176 million, as the company progressed in ongoing construction projects and saw greater productivity. It also recorded a one-off gain from the sale of two investment properties in Osaka, Japan.
Keong Hong&rsquo s net loss for the six months ended Sep 30 came in at S$45.8 million, higher than the year-ago S$35.4 million loss. Revenue for the half year fell 38 per cent to S$57.9 million.
Steeper costs
Founded in 1983, Keong Hong specialises in residential, commercial and industrial building construction. It also engages in property development and investment, and has a hotel business in the Maldives with two resorts.
The company&rsquo s construction business has had a challenging 2023, with higher costs for materials and labour, as well as employee benefit expenses. Its cost of sales rose to S$195.9 million in FY2023, from S$178.9 million in FY2022. Administrative expenses climbed 11 per cent to S$18.2 million.
Higher costs in the Maldives also weighed on the company&rsquo s full-year performance. Its associate that owns and manages an airport and hotels in the Maldives reported a wider net loss from higher finance costs and operational expenses.
As a result, Keong Hong saw a greater share of net losses from associates of S$7.8 million in FY2023, compared to S$5.5 million in FY2022.
That said, Keong Hong highlighted that combined average occupancy of its Mercure Maldives Kooddoo Hotel and Pullman Maldives Maamutaa Resort for 2023 stood at 69.2 per cent &ndash higher than the industry average of 57.6 per cent.
Challenging outlook
Despite higher manpower, fuel and utility costs, Keong Hong is positive on the outlook for the building construction sector. It will be seeking new opportunities in the healthcare and public housing segments.
Its construction order book stood at S$364 million as at Sep 30, 2023. The recent award of a tender by the Housing and Development Board for building works at Tengah Plantation will raise its order book to S$658 million residential projects form 55 per cent of the portfolio, while commercial projects make up the remainder.
With the Tengah Plantation contract, Keong Hong &ldquo will be in a stronger position as we progress into 2024&rdquo , said its chairman and chief executive Ronald Leo. He also noted that the company has secured its first mixed-use commercial construction project in the Central Business District, Solitaire on Cecil, to be completed in 2026.
On the property development and investment front, Keong Hong sees signs of deceleration in the market, with increased Additional Buyer&rsquo s Stamp Duty rates, higher costs of borrowing, a slowing global economy and weakening consumer sentiment.
But it is still on the lookout for &ldquo good value&rdquo opportunities with industry partners, albeit remaining prudent on any land acquisitions.
&ldquo While it is anticipated to be a challenging year ahead, we are cautiously optimistic that the worst is behind us,&rdquo said Leo.
Keong Hong had S$12.7 million in cash as at Sep 30, 2023, and a gearing ratio of 0.57 times.
Keong Hong narrows H1 net loss to S$3.7 million on pickup in construction activity
CONSTRUCTION player Keong Hong Holdings&rsquo : 5TT 0%net loss narrowed to S$3.7 million for its half-year ended Mar 31, 2023, from S$10.8 million in the year-ago period.
This is even as revenue more than doubled to S$118.1 million, from S$54.7 million a year earlier, the mainboard-listed company said in a bourse filing on Wednesday (May 10).
Keong Hong attributed the revenue gains to progress made in its various ongoing construction projects, as well as an increase in productivity of construction activities year on year.
Loss per share for the half-year stood at 1.58 Singapore cents, from 4.59 cents the previous year.
No dividend was declared for the half-year, unchanged from the year before.
Keong Hong unit bags S$118 million tender for office building
KEONG Hong Construction, a wholly-owned unit of Keong Hong Holdings : 5TT 0%, has secured a S$118 million tender for main contract works at Cecil Street.
The tender, awarded by Solitaire Cecil, involves the proposed erection of a 20-storey office building, with restaurants on the first floor and a basement carpark, the company said in a Tuesday (Mar 28) filing. The construction period is 35 months, commencing in May.
The project is not expected to have any material impact on Keong Hong&rsquo s earnings per share for the year ending Sep 30.
The reported loss is scarry and worrying for such a small markey cap company.
Joelton ( Date: 30-Nov-2022 08:48) Posted:
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Keong Hong' s net loss widens
Construction company Keong Hong Holdings announced a larger net loss of $46.6 million for the 12 months to Sept 30 or FY2022, compared to a net loss of $20 million a year ago. However revenue rose by 92.4% to $148.1 million. The revenue surge was attributed to the improvement in construction productivity and the commencement of upgrading works to Grand Hyatt Hotel Singapore.
Keong Hong awarded $70 million contract
Construction firm Keong Hong, which saw the entry of a new controlling shareholder earlier this year, has been awarded a $70 million contract.
The contract, given by Chempaka Development, is to design, build and maintain a 17-storey residential development block with 158 units, plus a few other smaller commercial units.
The development is at 799 New Upper Changi Road.
Construction works will begin on Jan 2 and is not seen to have any material impact on the consolidated net tangible assets per share and consolidated earnings per share of Keong Hong for the financial year ending 30 September 2023.
The new controlling shareholder is LJHB Holdings (S), with around 60% of the shares, is headed by CEO Xu Quanqiang, who was already a non-independent, and non-executive director of Keong Hong when he made the offer.
Since Sept 1, Xu has been designated as an executive director, while Ronald Leo (picture) remains chairman and CEO.
The global tourism sector is on the way of recovery. How is the business performance of hotels in Maldives? Keong Hong has two hotels in Maldives.
Keong Hong warns of expected H1 net loss, blames virus-related business conditions
MAINBOARD-LISTED construction player Keong Hong Holdings : 5TT 0% is warning of an expected net loss for the 6 months to Mar 31, 2022, the board said in a profit guidance on Thursday (May 5).
The expected first-half net loss was attributed &ldquo mainly to the continuation of labour shortages and rising business costs due to the Covid-19 pandemic&rdquo , according to the bourse filing.
Keong Hong, which sank into the red in FY2020, had most recently reported a net loss of S$16.9 million for its financial year ended Sep 30, 2021.
Still, the company said in a statement in March that it was &ldquo poised for recovery and ready for opportunities&rdquo , with an order book of S$482 million, after the close of a mandatory conditional cash offer by controlling shareholder LJHB Holdings.
The board said that Keong Hong is finalising its first-half results, which will be out by May 15, 2022. Shareholders and potential investors are advised to exercise caution when dealing in its shares.
I' ve decided to throw in the towel and move on ie reinvest the proceeds elsewhere because its uncertain how this company will progress going forward.
cupidth79 ( Date: 02-Mar-2022 22:57) Posted:
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hi everybody, i am holding the shares at a loss, bought it at 60cents plus. Should I take up the offer of 384 cents? Not very sure what to do.
As per latest announcement, major shareholder LJHB will give the financial support if needed.
they already own almost 60% and the offer is still open till 11 march
sharekingsg ( Date: 18-Feb-2022 10:28) Posted:
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It is unconditional now. Will it move up soon?
Buy every 1 mil shares with investment amount of SGD 380K, just for 4K profit.
OMG...LoL
OMG...LoL
stockinvestor ( Date: 04-Feb-2022 11:51) Posted:
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i think institutional investors r able to buy at low comms at $0.38. when accept offer at $0.384 there is no comms or sgx fees involved so the " sell" side no cost. should be able to make something for the big boys who queued up at $0.38.
sharekingsg ( Date: 04-Feb-2022 00:42) Posted:
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