Low Keng Huat Swings to Loss in H1 Amid Lower Property Sales

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F1E Intrinsic Value – Low Keng Huat($SGX:F1E) has reported a swing to loss in its half-year results, as lower property sales and a weaker construction market weighed on the company’s bottom line. This was mainly due to a decrease in revenue from property sales, as well as higher costs associated with its construction projects. Looking ahead, LKH said that it expects the property market to remain challenging in the near term, and that it will focus on completing its ongoing projects and reducing its debt levels.

Stock Price

On Thursday, shares of Low Keng Huat Ltd opened at SG$0.4 and closed at SG$0.4, down by 2.2% from its previous closing price of SG$0.4. The loss was largely due to lower property sales, as well as impairment losses on investment properties. Looking ahead, the company said that it is cautiously optimistic about the outlook for the property market in Singapore.

VI Analysis – F1E Intrinsic Value

The company’s fundamentals reflect its long term potential and the stock is trading at SG$0.4. The fair value of LOW KENG HUAT share is around SG$0.9.

Summary

The Company is engaged in the development, investment and ownership of property in Singapore and the region. The Company’s segments include Property development, Property investment, Hotel operations, and Others. The Company’s subsidiaries include Low Keng Huat Limited, Low Keng Huat Sdn. Despite the disappointing results, LKH remains positive about the future. The company is confident that its strong track record and diversified portfolio will enable it to weather the current challenges and continue to grow in the long term. Investors who are considering investing in LKH should be aware of the risks involved. The property market in Singapore is highly competitive and volatile, and LKH’s results are likely to be affected by market conditions. However, for investors with a long-term view, LKH could be a interesting play on the continued growth of the Singapore economy.