Keong Hong Holdings sees 7% decline in profit in 1QFY2015

Construction company Keong Hong Holdings’ 1QFY2015 revenue rose 18.8% to $73.2 million in December 2014 from $61.6 million a year ago. The higher revenue was driven by recognition of ongoing projects such as Alexandra Central, J Gateway, Skypark Residences and The Amore at Edgedale Plains/Punggol Central. Net profit attributable to owners dropped 7% to $5.67 million in 1QFY2015 from $6.1 million a year ago.
Management remained confident in its ability to withstand the current property market downturn, owing in part to its new and ongoing projects extending until 2017. The Terrasse and The Alexandra Central Phase One received their Temporary Occupation Permits on Nov 24 and Dec 11, 2014 respectively. The Alexandra Central Phase Two is expected to be completed by end-March, and the company will also be recognising revenue from the first tranche of its residential development, Twin Waterfalls executive condominium in Punggol, in a joint venture with Frasers Centrepoint.
This article appeared in the City & Country of Issue 664 (Feb 16) of The Edge Singapore.