KSH has released its results and as mentioned previously, i will be taking a closer look at it.
Positives
1)
Project Revenue has finally outpaced Cost of Construction.
|
1H 2021 |
2H 2021 |
1H 2022 |
2H 2022 |
| Project Revenue |
32,622,000 |
116,416,000 |
111,219,000 |
121,847,000 |
| Cost of Construction |
37,639,000 |
111,551,000 |
106,615,000 |
115,713,000 |
| Gap |
-5,017,000 |
4,865,000 |
4,604,000 |
6,134,000 |
In FY 2021, there is actually no profits from construction projects due to the higher cost. However, this situation has improved in 2022 with a higher profit seen in 2H 2022.
2)
Recognition of Associates and Joint Ventures projects gathering momentum.
While progressive billings have come down as recognition of revenue occurred, profits have hit a new high although a part of it would be due to fair value gains.
With losses recorded in FY 2021 due to expenses recognized based on percentage of construction, I believe that share of profit left should be more quality due to the projects nearing completion.
|
1H 2021 |
2H 2021 |
1H 2022 |
2H 2022 |
| Billings Estimated Left |
480 million |
416 million |
318 million |
212 million |
| Share of Profit of Associates and Joint Ventures |
-327 000 |
-2,602,000 |
9,759,000 |
19,002,000 |
...
