Low Keng Huat (Singapore) Limited, an investment holding company, engages in property development and investment activities in Singapore, Australia, and Malaysia. It invests in, develops, and sells properties; and invests in shares in quoted and unquoted equities. The company is also involved in the ownership and operation of deluxe hotel under the Duxton Hotel brand name in Perth; and restaurants, as well as other hospitality related business, such as food and beverage business under the Carnivore brand. In addition, it provides property fund management services. The company was founded in 1969 and is based in Singapore. Low Keng Huat (Singapore) Limited is a subsidiary of Consistent Record Sdn. Bhd.
Strategy: Singapore Mid-Cap Movers
Return at exit: 34.5%
Declining growth and profitability concerns
• Rotated out due to relative financial metrics that lag stronger alternatives in our model’s rankings
• Revenue has sharply contracted (-85% quarterly, -39% annually), reflecting the tail-end of the Klimt Cairnhill project and highlighting the company’s cyclical business model
• Current unprofitability (negative P/E of -41.3) and negative return on assets (-1.25%) signal operational challenges compared to sector peers
• Slim operating margin (3.3%) and modest EBITDA (17.5M SGD) with declining growth (-58.8%) indicate headwinds in core business performance
• Despite these challenges, the company maintains near book value (P/B ratio of 0.99) and offers a 1.9% dividend yield, suggesting some underlying stability
• This change reflects portfolio rotation based on relative metrics, not a sell signal