STOCKS NEWS SINGAPORE-KSH jumps to 32-month high, OCBC upgrades
Shares of KSH Holdings Ltd jumped as much as 8.2 percent to a 32-month high, after OCBC Investment Research upgraded it to 'buy' from 'hold', citing a resilient construction order book and better-than-expected execution for its real estate business.
By 0158 GMT, KSH shares were up 6 percent at S$0.26. The shares have jumped 36 percent since the start of the year, compared to the FTSE ST Fledgling Index's 18.6 percent rise.
The brokerage also raised KSH's target price to S$0.50 from S$0.26 and said it expects KSH's earnings to surge 68 percent in the year ending March and 73 percent the year after, helped by a rapid pickup in sales at a condominium in Singapore.
OCBC expects KSH to see a re-rating as it transitions from a cash rich construction contractor to a property developer with more active capital management.
Downside to KSH's shares is also limited, with management actively buying back shares at near current levels, OCBC said, adding that it expects the stock to payout a dividend yield of about 6.1 percent.
(Reporting by Charmian Kok in Singapore; firstname.lastname@example.org)