Low Keng Huat (Singapore)

[yeokiwi]

Hi ppl, there has been significant chat so far on the orderbooks, the latest moves for LKH. Any views on the level of gearing? from the latest results, interest bearing liabilities exceed shareholders' equity, is this sustainable given the current low interest environment? thanks.

Construction/Property companies normally have high amount of liabilities due to their nature of business. Most of the liabilities of LKH will disappear when the properties' TOP or completion of construction.

Of course, if all the Minton's and Paya Lebar square's unit buyers decided to give up their units and forsake all the payment that they have committed so far, LKH will be left with a huge liability and unsold units.

You can weigh the probability of that happening and decide the fate of the company.