KSH announced that it has won a S$78.2m construction contract for the proposed 11-storey Singapore Cultural Centre at Shenton Way. This brings the group’s order book up to S$414m and well within pace of our expectations for contract wins in the range of S$60m – S$100m over 4QFY15 and FY16.

Construction for this project will commence after Mar-15 and will be completed within 89 weeks, and the development will include an art gallery, a recital hall, a multi-purpose hall and a 530-seat auditorium. Management indicates that they expect public sector demand to be strong in the year ahead and actively seek opportunities in this space.

Maintain BUY with an unchanged fair value estimate of S$0.71.

Source: OCBC Research - 17 Feb 2015