Key Highlights
- New Joint Venture: Koh Brothers Eco Engineering Limited, through its wholly-owned indirect subsidiary Infratek Pte. Ltd., has established a joint venture company, Tenox Kyusyu Geotek Pte. Ltd. (“TKG”), in Singapore with Japan-based Tenox Kyusyu Corporation (“Tenox”).
- Equal Partnership: The initial issued and paid-up share capital of TKG is S\$20, with both Infratek and Tenox each holding a 50% stake in the new company.
- Business Focus: TKG will focus on foundation works and specialist geotechnical engineering, leveraging Tenox’s expertise in ground improvement methods.
- Date of Incorporation: The joint venture was incorporated on 18 November 2025.
- Management Statement: The Board of Koh Brothers Eco Engineering believes that this partnership is synergistic and beneficial, given Tenox’s extensive experience in its field.
- Financial Impact: The formation of TKG is not expected to have any material impact on the Group’s earnings per share or net assets per share for the financial year ending 31 December 2025.
- Independence from Related Parties: None of the directors or substantial shareholders of the Group has any direct or indirect interest in this transaction.
Details for Investors
Koh Brothers Eco Engineering Limited (“the Company”) has taken a significant step towards strengthening its presence in the specialist geotechnical engineering sector by partnering with Tenox Kyusyu Corporation of Japan. The new joint venture, Tenox Kyusyu Geotek Pte. Ltd. (“TKG”), will operate in Singapore and is positioned to capitalize on the growing demand for advanced foundation works and ground improvement solutions in the region.
The collaboration brings together the Group’s local market knowledge and Tenox’s technical expertise in ground improvement, potentially broadening the Group’s service offerings and enhancing its competitive edge. Although the initial capital commitment is minimal (S\$20), the partnership could pave the way for more substantial contracts and projects in the future, boosting the Group’s growth prospects.
The Board has emphasized the strategic value of the joint venture, describing it as a synergistic initiative that aligns with the Group’s growth strategy. The move could position the Group for increased business opportunities in the infrastructure and construction sectors, both locally and potentially across the region.
Potential Shareholder Impact
- No Immediate Material Financial Impact: For the current financial year ending 31 December 2025, the incorporation of TKG is not expected to materially impact the Group’s earnings per share or net assets per share. This suggests that while the long-term potential is promising, there will be no significant short-term change in the Group’s financials.
- Strategic Growth Opportunity: Investors should note the potential for future growth arising from this synergistic partnership. If TKG secures significant contracts or expands its operations, it could have a positive impact on Koh Brothers Eco Engineering’s future earnings and share value.
- Transparency and Governance: There are no related party transactions involved, as neither directors nor substantial shareholders have any interest in this JV, ensuring a high level of corporate governance and transparency.
Additional Information
The announcement was reviewed by the Company’s sponsor, RHT Capital Pte. Ltd., but has not been examined or approved by the Singapore Exchange Securities Trading Limited (SGX-ST). The SGX-ST does not assume responsibility for the contents of the announcement.
For sponsorship matters, investors can contact Mr. Joseph Au at RHT Capital Pte. Ltd., 36 Robinson Road, #10-06 City House, Singapore 068877, or via email at [email protected].
Conclusion
While the immediate financial impact is expected to be minimal, the strategic nature of this joint venture could present significant growth opportunities for Koh Brothers Eco Engineering Limited in the medium to long term. Shareholders and investors are advised to monitor future developments related to Tenox Kyusyu Geotek Pte. Ltd., as any major contract wins or business expansion could positively influence the Group’s performance and share price.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult their professional advisors before making any investment decisions. The author and publisher are not responsible for any losses resulting from reliance on the information provided herein.
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