Summary: KSH Holdings reported 3QFY14 PATMI of S$9.9m, up 22% YoY, mostly due to increased contributions from the construction and property development segments. 9MFY14 PATMI cumulates to S$33.5m, up 50.3%, and makes up 69% of our full year forecast. We judge this to be mostly within expectations, and anticipate a back-loaded year in terms of revenue recognition from construction and development projects. In addition, we note that 3QFY14 earnings were also impacted by up-front marketing costs for key projects launches, KAP, NeWest and Floraville. 3QFY14 topline increased 78.4% YoY to S$93.2m as construction project and development revenues rose 67.9% and 344.8%, respectively. We will speak further with management regarding these results and, in the meantime, maintain BUY with an unchanged fair value estimate of S$0.73.

Source: OCBC Research - 12 Feb 2014