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Singapore’s Big Loser for the Week: Kitchen Culture Holdings Ltd

Credit: hobvias sudoneighm

Kitchen Culture Holdings Ltd (SGX: 5TI) has declined by 11.1% since last Friday to end this week at S$0.24. With the Straits Times Index (SGX: ^STI) inching down by only 0.02% during the same time frame, it makes Kitchen Culture a big loser in the local share market this week.

The company is “among Singapore’s leading distributors of high-end kitchen systems, kitchen appliances, wardrobe systems, household furniture and accessories from Europe and USA.” Some of the firm’s recent projects include Coral Island at Sentosa Cove, Waterfall Gardens along Holland Road, and The Orchard Residences at ION Orchard. The company was listed in 2011 but the shares are down some 20% since going public.

On Friday this week, Kitchen Culture Holdings announced that Kitchen Culture (Hong Kong) Limited, a 70%-owned subsidiary, had clinched a contract worth HK$34.6 million (around S$6 million) for the supply and installation of Eggersmann kitchen cabinets for the apartments in a “prestigious residential development” located at 8 Mount Nicholson Road, The Peak, Hong Kong.

The works will only take place towards the end of the construction phase of the apartments, which is expected to be in 2016. As at 30 June 2015, Kitchen Culture Holdings’ order book based on secured contracts (including the latest contract) is in the region of S$50 million. These contracts are expected to be fulfilled within the next three years.

The firm has no earnings to speak of as it had made a loss of S$1.3 million for the year ended 31 December 2014. It is currently trading at 1.9 times its net asset value.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.