KSH reported that it has been awarded a S$33.2m contract by the National University of Singapore (NUS) to build a 3-storey University Sports Centre Building. Construction is expected to start in Apr 2015 and will be completed in 25 months by May 2017. This contract win will boost the group’s order book to S$420m and is the third project from NUS awarded to KSH.

The group has previously worked on NUS residential colleges, Cinnamon College and Tembusu College, and also the University Town’s Education Resource Center. We understand that management expects public sector demand to be strong in FY15 and will continue to actively seek opportunities in this space.

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

Source: OCBC Research - 21 Apr 2015