Latest news with #KohBrothers
Yahoo
04-07-2025
- Business
- Yahoo
The 16% return this week takes Koh Brothers Group's (SGX:K75) shareholders one-year gains to 68%
These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But if you pick the right individual stocks, you could make more than that. For example, the Koh Brothers Group Limited (SGX:K75) share price is up 68% in the last 1 year, clearly besting the market return of around 16% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! Looking back further, the stock price is 37% higher than it was three years ago. After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Koh Brothers Group wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings. Koh Brothers Group actually shrunk its revenue over the last year, with a reduction of 33%. The stock is up 68% in that time, a fine performance given the revenue drop. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot. The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail). You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic. It's nice to see that Koh Brothers Group shareholders have received a total shareholder return of 68% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 6% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Koh Brothers Group better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Koh Brothers Group (including 1 which shouldn't be ignored) . Of course Koh Brothers Group may not be the best stock to buy. So you may wish to see this free collection of growth stocks. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Singaporean exchanges. — Investing narratives with Fair Values Suncorp's Next Chapter: Insurance-Only and Ready to Grow By Robbo – Community Contributor Fair Value Estimated: A$22.83 · 0.1% Overvalued Thyssenkrupp Nucera Will Achieve Double-Digit Profits by 2030 Boosted by Hydrogen Growth By Chris1 – Community Contributor Fair Value Estimated: €14.40 · 0.3% Overvalued Tesla's Nvidia Moment – The AI & Robotics Inflection Point By BlackGoat – Community Contributor Fair Value Estimated: $384.84 · 0.2% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
03-07-2025
- Business
- Yahoo
Investing in Koh Brothers Eco Engineering (Catalist:5HV) a year ago would have delivered you a 97% gain
The simplest way to invest in stocks is to buy exchange traded funds. But investors can boost returns by picking market-beating companies to own shares in. For example, the Koh Brothers Eco Engineering Limited (Catalist:5HV) share price is up 97% in the last 1 year, clearly besting the market return of around 16% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! And shareholders have also done well over the long term, with an increase of 46% in the last three years. Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Given that Koh Brothers Eco Engineering didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally hope to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth. In the last year Koh Brothers Eco Engineering saw its revenue shrink by 16%. Despite the lack of revenue growth, the stock has returned a solid 97% the last twelve months. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot. The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail). Take a more thorough look at Koh Brothers Eco Engineering's financial health with this free report on its balance sheet. We're pleased to report that Koh Brothers Eco Engineering shareholders have received a total shareholder return of 97% over one year. That gain is better than the annual TSR over five years, which is 7%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 1 warning sign for Koh Brothers Eco Engineering you should be aware of. But note: Koh Brothers Eco Engineering may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Singaporean exchanges. — Investing narratives with Fair Values Suncorp's Next Chapter: Insurance-Only and Ready to Grow By Robbo – Community Contributor Fair Value Estimated: A$22.83 · 0.1% Overvalued Thyssenkrupp Nucera Will Achieve Double-Digit Profits by 2030 Boosted by Hydrogen Growth By Chris1 – Community Contributor Fair Value Estimated: €14.40 · 0.3% Overvalued Tesla's Nvidia Moment – The AI & Robotics Inflection Point By BlackGoat – Community Contributor Fair Value Estimated: $384.84 · 0.2% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Times
29-06-2025
- Business
- Business Times
From Changi T5 to MBS expansion, Koh Brothers Group rides on Singapore's infrastructural upgrades
[SINGAPORE] Construction and property group Koh Brothers is set to usher in a new era of growth, as Singapore embarks on large-scale infrastructure upgrades over the next few years. 'We were there with Singapore in its earlier phases of nation-building – and now we're going through nation-building 2.0,' said group chief executive officer and executive chairman Francis Koh. He was speaking to The Business Times fresh off the group's latest win: a S$999 million contract awarded by Changi Airport for the construction of underground tunnels at the upcoming Terminal 5. The contract was nabbed by a joint venture between Koh Brothers Building and Civil Engineering Contractor – a unit under the group's subsidiary Koh Brothers Eco Engineering – and Japanese company Penta-Ocean Construction. With the new project, Koh noted that the group's order book now exceeds S$1 billion with visibility to 2029. Things have certainly been rosier for the group. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up After sustaining one-and-a-half years of pandemic-induced losses, Koh Brothers finally returned to the black with a net profit of S$1.7 million for its latest half-year ended Dec 31, 2024. It had posted a net loss of S$5.9 million the year before. This was despite revenue sliding 21 per cent to S$125.5 million in H2 2024, from S$159.7 million. Koh attributed the turnaround to reduced construction losses, improved profits from associate company Oiltek International, and the group's real estate segment turning profitable. Shares of Koh Brothers closed at S$0.187 last Friday (Jun 27), putting the company's market capitalisation at S$77.1 million. Growing with Singapore The construction of Changi Airport Terminal 5 is likely to be a source of 'very big' contracts for Koh Brothers in the near-term, says group CEO and executive chairman Francis Koh. ARTIST'S IMPRESSION: CHANGI AIRPORT GROUP Key growth drivers for the group will come from the construction of Changi Airport Terminal 5 and the expansion of Marina Bay Sands – both of which are likely to be sources of 'very big' contracts in the near-term, said Koh. As he sees it, the group's strong track record in public-sector construction projects puts it in good stead to bag these tenders. Koh Brothers will also continue its standard slate of government projects, including public housing developments, the expansion of MRT networks, and wastewater treatment. According to the Building and Construction Authority, construction contracts worth up to S$53 billion are expected to be awarded this year. From 2026 to 2029, total construction demand is projected to reach an average of between S$39 billion and S$46 billion each year. Koh Brothers has grown alongside Singapore through the ages, literally. It was, after all, founded by Koh's father – Koh Tiat Meng – in 1966, just a year after the Republic gained independence. Since then, the group has been responsible for laying much of the groundwork that has transformed the Republic into a first-world metropolis over the past six decades. Its major projects include the construction of Marina Barrage, Punggol Waterway, water reclamation plants at Changi and Jurong, as well as Downtown Line 1 Bugis Station and its associated tunnels. Amid booming construction activity, Koh is confident that the group will remain profitable in FY2025 – and perhaps even surpass both top and bottom line numbers from FY2024. Koh is already eyeing future growth opportunities. One key project is the upcoming 'Long Island' reclamation along Singapore's east coast, which will require ground improvement works and also water treatment for the creation of a freshwater reservoir. He expects tenders to start coming in from 2030 onwards, once feasibility studies conclude. Diversification within its niche Some shareholders have raised concerns that the group's portfolio is not diversified enough, given the heavy concentration of revenue from construction and building materials. This segment contributed nearly 95 per cent of total revenue for FY2024, up from 68.8 per cent the year before. The rest came from real estate and leisure, as well as hospitality. But those who take that view lack 'a clear picture' of the business, said Koh, pointing out that there are many sub-segments. For instance, the construction division alone consists of three separate business units: infrastructure piling and foundation works; building construction; as well as water and wastewater treatment. They were previously lumped together as one, before being carved out during an internal operational streamlining in late 2024. The group has also branched out into bio-refinery and renewable energy projects through Oiltek International, which is a subsidiary of Koh Brothers Eco Engineering. In late 2024, Koh Brothers carved out three distinct business units from its construction division. PHOTO: BT FILE Koh is ramping up hiring at the building construction unit, as he aims to bid for more private commercial and residential construction contracts down the road. There are plans to increase the unit's headcount to 80 by 2027, from eight employees currently. 'We've always been traditionally perceived as being strong in foundation works, but not so much in (the actual construction of) buildings,' he explained. 'But as a construction company, we should be strong in both areas.' He also has a bigger ambition: to nurture more 'engineer-preneurs' – a portmanteau he coined to refer to engineers turned entrepreneurs – and give them the opportunity to lead some of the group's subsidiaries one day. This plan is already in motion, with the carving-out of distinct business units within the construction segment. Koh wants to reward the group's talent by putting high-potential engineers in charge of these units and empowering them to grow the businesses into subsidiaries. These entities can be potentially spun off for future listings 'when the time is right', he said. Oiltek went on a similar trajectory, as an 80-per-cent-held indirect subsidiary of Koh Brothers Eco Engineering. It was spun off to list on the Singapore Exchange's Catalist board in 2022, before transferring to the mainboard in April 2025. Engineering talent will remain crucial to Singapore, as the Republic continues to embark on infrastructural developments, Koh noted. 'We want to encourage our engineering talent – whether civil engineers, wastewater treatment engineers, or processing engineers – to go on an entrepreneurial path,' he said. 'The idea is for them to helm our business units, grow them into companies, and expand from there… They can be more independent, raise funds by themselves, or do joint ventures.' Challenging real estate environment As the group beefs up its construction and building materials capabilities, its real estate investments have taken a backseat. This is in view of the higher-interest-rate environment, said Koh, noting that government cooling measures have also affected the take-up rates for properties in Singapore. As part of risk management efforts, he has sought to actively reduce the group's bank borrowings. Koh Brothers' total bank borrowings and lease liabilities fell to S$145.7 million in FY2024 from S$217.7 million the year before. Its gearing ratio stood at 0.37 as at end-2024, down from 0.54. Still, shareholders have raised concerns over the lack of ongoing property developments by the group of late, following the completion and sale of Van Holland and Hyll on Holland in H1 2024. In light of this, the real estate segment's revenue contribution plunged to 4.4 per cent in FY2024, from 30.1 per cent in FY2023. Following the completion and sale of Van Holland (pictured) and Hyll on Holland, Koh Brothers saw revenue contribution from its real estate segment plunge to 4.4% in FY2024, from 30.1% the year before. ARTIST'S IMPRESSION: KOH BROTHERS Koh Brothers still receives recurring income from four investment properties at home and abroad. These are serviced apartment Alocassia, mixed-use development Sun Plaza, First City Complex in Batam, and Nonhyeon I'Park in Seoul. Given the currently high capital values, some shareholders have suggested the group sell its stake in Sun Plaza – a move Koh is not ruling out. 'If the price is good, we will think about how to unlock shareholder value,' he said. The group will adopt a prudent approach in seeking out future real estate opportunities, he added, flagging projects in the Johor-Singapore Special Economic Zone as possibilities. Within the zone, the group has fingers on the upcoming mixed-use development Medini i-Walk. It has formed a joint venture vehicle in Malaysia – of which it owns a 25 per cent equity stake – with partner Dennis Chiu to undertake the project. Koh pointed out the group holds a competitive advantage in the form of a precast concrete facility in Senai that it owns, under the G&W Group of companies – the building materials division of Koh Brothers. This will allow it to directly supply precast concrete components to Medini i-Walk. Meanwhile, the group's leisure and hospitality segment is likely to remain status quo for now. It has just one asset under this segment: the 130-room Oxford Hotel on Queen Street. Its operations contributed 1.5 per cent of group revenue for FY2024, roughly on par with FY2023's 1.1 per cent. The group intends to prioritise the growth of its construction and real estate businesses over this, said Koh. This is because hotels require a higher capital outlay, with returns on investments often taking longer to materialise than those of residential projects. Nonetheless, Koh Brothers is considering asset enhancement initiatives for Oxford Hotel – its poor ratings on hotel booking websites have been flagged by shareholders. 'We take all these opinions very seriously and will see how we can improve,' Koh said.
Independent Singapore
11-06-2025
- Business
- Independent Singapore
Koh Brothers Eco's subsidiary to build underground tunnels at Changi's upcoming T5 in S$999M JV deal
Phot: Depositphotos/tang90246 SINGAPORE: Koh Brothers Eco Engineering's subsidiary, Koh Brothers Building & Civil Engineering Contractor (KBCE), has been awarded a S$999 million contract by Changi Airport Group (CAG) to build underground tunnels at Changi Airport's upcoming Terminal 5 (T5). The project will be carried out through a joint venture with Penta-Ocean Construction, according to the company's press release on Tuesday (June 10). KBCE will be in charge of constructing intra-terminal tunnels that link different parts of Terminal 5. The tunnel system will include several sub-tunnels that will house key infrastructure to support airport operations, including the automated people mover system, baggage handling system, and a common services tunnel (CST) for utilities such as electrical power, communication systems, and water services. The works will also include a ventilation building to support the CST, along with provisions for a future underground infrastructure tunnel. Paul Shin, Koh Brothers Eco's CEO, said, 'We are honoured by the trust placed in KBCE and Penta Ocean for this mega project by airport operator Changi Airport Group (CAG). Securing this contract marks our deepened collaboration with CAG and another milestone in our commitment to supporting Singapore's transport infrastructure.' In early May, Changi Airport Group awarded S$4.75 billion in contracts for substructure and airside infrastructure works at T5 . The new terminal, expected to open in the mid-2030s, officially broke ground on May 14, 2025, and will help Changi Airport handle 50 million more passengers each year . /TISG Read also: SATS gears up for Changi Terminal 5 with S$250M in ground and cargo upgrades Featured image by Depositphotos (for illustration purposes only)
