KSH FY2026: Construction Margins Drive Loss-To-Profit Turnaround, S$965M Order Book To FY2030, Three New Industrial JVs — Tianjin S$7.4M Fair Value Drag Persists

KSH Holdings released its full-year results for FY2026 (year ended 31 March 2026) on 28 May 2026 — and the headline is a clean reversal. The Group swung from a net loss of S$9.5 million in FY2025 to a net profit of S$5.5 million in FY2026, with profit attributable to owners of S$6.8 million compared to a loss of S$5.9 million the prior year. The turnaround was driven not by revenue growth — revenue actually fell 17.4% to S$149.9 million — but by improved construction margins and materially lower finance costs. The revenue decline is project lifecycle timing, not demand weakness. Several major projects completed during the first half, and while new awards replenished the order book in late 2HFY2026, these projects were still at early stages by year-end. The order book itself tells a different story: at approximately S$965 million as at 31 March 2026, it provides revenue visibility out to FY2030.

Construction — the core contributor — generated segment profit of S$18.9 million in FY2026, up from S$8.7 million in FY2025. Cost of construction fell 25.9% to S$120.3 million, outpacing the revenue decline. Finance costs dropped 42.8% to S$2.9 million from S$5.1 million, reflecting lower borrowing costs despite higher gearing in late 2HFY2026.

The investment property portfolio remains under pressure. Total carrying value declined from S$96.0 million to S$89.4 million, with a S$7.4 million fair value loss on Tianjin Tianxing Riverfront Square — the 36-storey commercial complex in Tianjin's Hedong District that constitutes 78% of the Group's investment property exposure. The commercial valuation fell from S$76.2 million to S$69.6 million, reflecting ongoing weakness in China's commercial property market. Rental income from the PRC slipped to S$3.4 million from S$4.2 million. The Singapore residential holdings held broadly steady at a combined S$19.8 million.

Property development — the JV-driven segment — booked a segment loss of S$3.9 million, down from a loss of S$13.2 million in FY2025. The losses stem from a timing mismatch under accounting standards: operating expenses and holding costs for several Singapore projects are recognised immediately, while revenue recognition remains minimal. On a cash basis, the picture is more positive — the Group's equity share of unrecognised attributable revenue from sold units in the four active Singapore JVs (The Arcady at Boon Keng, One Sophia, Sora, and Bagnall Haus) amounts to more than S$187 million.

The structural read from FY2026 is the portfolio pivot. Beyond the four active residential JVs, the Group disclosed three new joint ventures for industrial development in Singapore: GATE+ at Tukang Innovation Drive (Plot A, 10% KSH stake), Tukang Innovation Drive Plot B (30% KSH stake), and Thomson Gem at Upper Thomson Road (25% KSH stake). None have been launched yet — but the move into industrial is a diversification signal.

The China residential developments continue their long tail. Sino-Singapore Health City (22.5% KSH stake) has Phase 1 completed with 1,332 units and 86% sold; Phase 2 has 1,011 units commenced with target completion FY2027 but only 12% of launched units sold. Zhong Xin Yue Shang (33.75% KSH stake) has Phase 1 at 204 units and 87% sold; Phase 2 has 746 launched units with 45% sold.

Cash and fixed deposits rose to S$145.2 million from S$123.1 million. Total borrowings increased to S$105.0 million from S$65.9 million, pushing gearing to 0.34x from 0.22x — still conservative for a construction group. The Board declared total dividends of 1.50 cents per share (interim 0.50 cents + proposed final 1.00 cent), up 20% from 1.25 cents in FY2025, on an expanded share base of 569.7 million shares after the sale of 28.9 million treasury shares via private placement in August 2025.

One notable disclosure: family succession surfaced formally. Choo Guan Hao (age 27), son of Executive Chairman and Managing Director Choo Chee Onn, was appointed Assistant Project Manager from November 2025. Martin Tok Sui Chuan (age 47), son of Executive Director and Project Director Tok Cheng Hoe, was appointed Assistant Project Manager from February 2026. Both founders have been with the business since 1974 — over 50 years. The next generation is now formally in the pipeline.