[SINGAPORE] Koh Brothers Eco Engineering’s share price spiked 14 per cent to S$0.057 a day after Jun 10, when it said a joint venture involving its subsidiary had bagged a S$999 million contract.
The Catalist-listed company last traded at this level back in November 2021.
The contract, for the construction of underground tunnels at Changi Airport Terminal 5, was awarded to a joint venture of Koh Brothers Building and Civil Engineering Contractor (KBCE) and Penta-Ocean Construction.
The duo, as well as three companies – China Communications Construction Company (Singapore Branch), Obayashi Singapore and Hwa Seng Builder – that were earlier awarded substructure and airside infrastructure projects for T5 totalling about S$4.8 billion, have all been involved in previous works for Changi Airport.
In its statement on the awards, operator Changi Airport Group (CAG) detailed some of the works the five have done for the air hub, with some dating back to the 1970s.
While the general track records of bidders mattered, their history of working on Changi Airport projects and their familiarity with Singapore’s air hub probably also weighed in their favour and helped them bag the deals.
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Among the construction players on the Singapore Exchange, some have taken on local airport projects. Below are five that investors might want to look out for as possible beneficiaries of the multi-billion-dollar mega Changi East development, which includes the airport’s T5, third runway, as well as cargo complexes and other supporting aviation and ground transport infrastructure.
However, investors should take note that project wins do not always guarantee profitability.
Hock Lian Seng
In 2016, a subsidiary of the civil engineering, properties development and investment group, via a joint venture, secured a S$1.1 billion project for the development works to effect three-runway operations at Changi Airport.
The subsidiary had a 60 per cent interest in the tie-up with Sembcorp Design and Construction to carry out taxiway pavement works, drainage, mechanical and electrical works, security fencing, perimeter roads, ancillary buildings, as well as other supporting works such as services and road diversions.
In 2014, the same subsidiary secured a S$105.5 million project for the construction of taxiways, aircraft parking stands and other associated works at the former south end reservoir site at Changi Airport.
Hock Lian Seng holds the A1 grade from the Building and Construction Authority (BCA) for both building and civil engineering categories, allowing it to tender for building and civil infrastructure projects of unlimited value.
Huationg Global
Huationg Global began jetty operations and management under contract from CAG in 2015.
The group operates four segments – civil engineering contract works, inland logistics support, sale of construction materials, and dormitory operation – and was also awarded a project from CAG to develop key infrastructure facilities at Changi East in 2017.
It bagged a contract from CAG in 2020 to design, construct and operate the Changi East Workers Dormitory Village that houses up to 10,400 workers.
Huationg holds the A1 grade from BCA for the civil engineering category.
The company holds the B2 grade under the general building category, meaning it has the financial and technical capacity to undertake projects within the category up to a certain financial limit.
Koh Brothers Eco Engineering
It is a sustainable engineering solutions group that provides engineering, procurement and construction services for water and wastewater treatment, hydro-engineering, bio-refinery and bio-energy projects.
The company also provides engineering and construction services, specialising in providing building and civil engineering construction and infrastructure works.
KBCE holds the A1 grade from the BCA for both building and civil engineering categories.
The projects it has undertaken for Changi Airport include development works to enable operations across three runways and the construction of a retention pond.
Ley Choon
Ley Choon’s pipeline works includes underground utilities infrastructure construction and maintenance, sewer pipeline rehabilitation, as well as laying of high voltage transmission power cables and a high pressure transmission gas pipeline.
It also offers asphalt pre-mix production, sales and construction waste recycling as well as road and airfield construction and maintenance.
The company secured its first CAG contract in 2009 for the resurfacing of taxiways, and subsequently also clinched project works worth S$31.4 million for airfield taxiway and aprons construction at Seletar Airport.
It was awarded a S$15.3 million contract in 2012 for the maintenance and repair works related to aircraft parking stands at Changi Airport, and another valued at S$24.8 million in 2015 for resurfacing of taxiways.
Ley Choon is a BCA L6 registered contractor, which allows it to tender for Singapore public sector contracts of unlimited value in the categories of cable/pipe-laying and road reinstatement, pipes, and other basic construction materials.
It is an A1 registered contractor in the category of civil engineering.
OKP
OKP is an infrastructure and civil engineering company that specialises in the construction of airport runways and taxiways, expressways, flyovers, vehicular bridges, urban and airport infrastructure and oil and gas-related infrastructure for petrochemical plants.
It also has a property development and investment business.
The company was involved in the construction of East (North) Aircraft Parking Apron, associated taxiways and ancillary works at Seletar Airport for CAG, for a contract of S$39.8 million in 2012.
Subsidiaries Or Kim Peow Contractors and Eng Lam Contractors are BCA A1-grade civil engineering contractors.
