Koh Brothers Group’s net profit jumped 138 percent from $4.8 million in Q2 2013 to $11.5 million in Q2 2014.
The record profit was on the back of higher group revenue mainly due to its real estate division which contributed higher sales in Q2 2014 and H1 2014, said Francis Koh, Managing Director and Group CEO of Koh Brothers.
Group revenue comprises sales of products, services rendered, property development and rental income, as well as construction contract revenue.
In Q2 2014, an increase in sales, mainly from its real estate division – Koh Brothers Development, lifted group revenue by seven percent to $109.5 million.
Whilst share of results from associated companies recorded a profit of $103,000 in Q2 2014, share of results from joint ventures had a loss of $1.6 million. The latter was mainly due to lower contribution from a property currently undertaking an asset enhancement exercise and initial setup cost for a residential project.
Looking ahead, Koh said, “The construction sector is experiencing a tight labour market and there are more stringent regulatory controls. However, the brighter side of it is that more construction demand is expected to be generated from the public sector. For the residential property market, with the various property cooling measures still in place, we expect prices to further moderate this year.”
The group’s various business lines include real estate development, construction, building materials, and environmental engineering.
Credits: Property Guru