SGX:ER0

Stock Analysis Report

Executive Summary

KSH Holdings Limited, an investment holding company, operates as a construction builder and contractor.

Rewards

Trading at 83.8% below its fair value

Risk Analysis

Earnings have declined by -21.51% per year over past 5 years

Dividend of 5% is not well covered by earnings

Profit margins (4.4%) are lower than last year (16.9%)



Snowflake Analysis

Flawless balance sheet and slightly overvalued.

Share Price & News

How has KSH Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ER0 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.4%

ER0

-0.04%

SG Construction

-0.3%

SG Market


1 Year Return

-20.0%

ER0

-9.9%

SG Construction

2.1%

SG Market

Return vs Industry: ER0 underperformed the SG Construction industry which returned -7.5% over the past year.

Return vs Market: ER0 underperformed the SG Market which returned 2.1% over the past year.


Shareholder returns

ER0IndustryMarket
7 Day-3.4%-0.04%-0.3%
30 Day-3.4%2.3%1.4%
90 Day-6.7%3.7%2.8%
1 Year-16.0%-20.0%-7.7%-9.9%6.3%2.1%
3 Year10.1%-2.8%-13.8%-21.4%14.9%2.6%
5 Year43.9%13.2%-40.5%-49.5%11.1%-7.4%

Price Volatility Vs. Market

How volatile is KSH Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is KSH Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ER0 (SGD0.44) is trading below our estimate of fair value (SGD2.71)

Significantly Below Fair Value: ER0 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ER0 is poor value based on its PE Ratio (21.9x) compared to the Construction industry average (16.4x).

PE vs Market: ER0 is poor value based on its PE Ratio (21.9x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ER0's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ER0 is overvalued based on its PB Ratio (0.8x) compared to the SG Construction industry average (0.6x).


Next Steps

Future Growth

How is KSH Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.9%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as KSH Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has KSH Holdings performed over the past 5 years?

-21.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ER0 has high quality earnings.

Growing Profit Margin: ER0's current net profit margins (4.4%) are lower than last year (16.9%).


Past Earnings Growth Analysis

Earnings Trend: ER0's earnings have declined by -21.5% per year over the past 5 years.

Accelerating Growth: ER0's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ER0 had negative earnings growth (-58.9%) over the past year, making it difficult to compare to the Construction industry average (-53.3%).


Return on Equity

High ROE: ER0's Return on Equity (3.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is KSH Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ER0's short term assets (SGD146.6M) exceed its short term liabilities (SGD129.3M).

Long Term Liabilities: ER0's short term assets (SGD146.6M) exceed its long term liabilities (SGD100.0M).


Debt to Equity History and Analysis

Debt Level: ER0's debt to equity ratio (32.4%) is considered satisfactory.

Reducing Debt: ER0's debt to equity ratio has reduced from 47.9% to 32.4% over the past 5 years.

Debt Coverage: ER0's debt is well covered by operating cash flow (27.9%).

Interest Coverage: ER0's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet

Inventory Level: ER0 has a low level of unsold assets or inventory.

Debt Coverage by Assets: ER0's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

What is KSH Holdings's current dividend yield, its reliability and sustainability?

5.24%

Current Dividend Yield


Dividend Yield vs Market

company5.2%marketbottom25%2.4%markettop25%5.5%industryaverage3.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: ER0's dividend (5%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: ER0's dividend (5%) is low compared to the top 25% of dividend payers in the SG market (5.41%).


Stability and Growth of Payments

Stable Dividend: ER0's dividend payments have been volatile in the past 10 years.

Growing Dividend: ER0's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (109.7%), ER0's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of KSH Holdings's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average management tenure


CEO

Chee Onn Choo (68yo)

0yrs

Tenure

0

Mr. Chee Onn Choo is a Co-Founder of KSH Holdings Limited and serves as its Executive Chairman and Managing Director. Mr. Choo plays a vital role in charting the Corporate Direction of the entire Group and ...


Management Age and Tenure

6.3yrs

Average Tenure

68yo

Average Age

Experienced Management: ER0's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

13.8yrs

Average Tenure

67yo

Average Age

Experienced Board: ER0's board of directors are seasoned and experienced ( 13.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Kee Seng Lim (67yo)

    Executive Director

    • Tenure: 13.8yrs
  • Chee Onn Choo (68yo)

    Co Founder

    • Ngat Khow Kwok (71yo)

      QAQC Director & Executive Director

      • Tenure: 13.8yrs
    • Cheng Hoe Tok (68yo)

      Co-Founder

      • Tenure: 13.8yrs
    • Tony Tang

      CFO & Joint Company Secretary

      • Tenure: 13.1yrs
    • Beng Hong Ong

      Joint Company Secretary

      • Tenure: 6.3yrs

    Board Members

    • Chuan Aun Ko (61yo)

      Independent Director

      • Tenure: 6.4yrs
    • Kenny Lim (57yo)

      Lead Independent Director

      • Kee Seng Lim (67yo)

        Executive Director

        • Tenure: 13.8yrs
      • Chee Onn Choo (68yo)

        Co Founder

        • Ngat Khow Kwok (71yo)

          QAQC Director & Executive Director

          • Tenure: 13.8yrs
        • Ivan Khua (44yo)

          Independent Director

          • Tenure: 13.1yrs
        • Cheng Hoe Tok (68yo)

          Co-Founder

          • Tenure: 13.8yrs

        Company Information

        KSH Holdings Limited's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: KSH Holdings Limited
        • Ticker: ER0
        • Exchange: SGX
        • Founded: 1979
        • Industry: Construction and Engineering
        • Sector: Capital Goods
        • Market Cap: S$241.458m
        • Shares outstanding: 568.14m
        • Website: https://www.kimsengheng.com

        Location

        • KSH Holdings Limited
        • 36 Senoko Road
        • Singapore
        • 758108
        • Singapore

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        ER0SGX (Singapore Exchange)YesOrdinary SharesSGSGDFeb 2007
        XEUADB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2007

        Biography

        KSH Holdings Limited, an investment holding company, operates as a construction builder and contractor. The company operates through Construction, and Property Development and Management segments. It constructs residential, commercial, hospitality, and mixed-use development projects; rents and sells properties; and constructs buildings, bridges, tunnels, viaducts, and elevated highways. The company also operates approximately 13 hotels. KSH Holdings Limited serves property developers, land owners, and governmental bodies in public and private sectors. It operates in Singapore, the People’s Republic of China, Malaysia, Vietnam, Japan, Australia, and the United Kingdom. KSH Holdings Limited was incorporated in 1979 and is based in Singapore. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/23 12:49
        End of Day Share Price2020/01/23 00:00
        Earnings2019/09/30
        Annual Earnings2019/03/31


        Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.