Koh Brothers posts near 10-fold jump in FY net profit

Developer Koh Brothers has posted a near 10-fold jump in full-year net profit – rising 877 percent to S$39.7 million.

The sharp spike in the bottomline was due mainly to fair value gains on investment properties. There was also an exceptional gain of S$5.6 million after the company sold three units in Shantou, China.

Sales rose 10 percent to S$285.5 million and Koh Brothers remains bullish about its outlook.

It expects construction demand in Singapore to continue to be vibrant, reaching between S$23 billion and S$27 billion this year.

The company said it would bid for more large-scale public sector projects such as the 5-kilometre long Marina Coastal Expressway, a new MRT line and the Seletar Reservoir Water Treatment Works.

Although rising costs will be a key challenge for the construction industry, the firm believes demand for building material products will remain strong, benefiting its building materials division.

Given the positive outlook for the private residential market, Koh Brothers said it would continue to focus on premium real estate developments.

Barring unforeseen circumstances, the group expects to remain profitable in FY2008.

Source : Channel NewsAsia – 26 Feb 2008

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