Lian beng post an impressive 1H results. I find Lian beng is the construction stock that hasn't really gain investor attention. Yet 1) forward PE is slightly less than 4 assuming they repeat their 1H results. I don't remember seeing many construction companies with such PE although I didn't do a study on the 20 something construction firms listed in the sgx. 2) bca latest projection of demand for 2011 (
www.bca.gov.sg/Newsroom/newsroom.html
) is Between 22 to 28 billion. Comparable ti the 25 billion recorded in 2010. Hence demand should remain relatively firm and hence The external conditions are in place for Lian beng to repeat it's 1h performance 3) obtain shareholders approval to buy back it's own shares. This reflect the comfort the company has with it's cash level which increase from Abt 33 million to 100 million. 4) profit margin improve bode well for it's management of cost 5) the recent acquisition of industry site (news priced in already thou ) Vested and sharing my 2 cents worth. Wishing all forumers a prosperous new year
Lian Beng Group rated 'buy' by DMG
Written by The Edge
Thursday, 21 April 2011 07:31
DMG & Partners Securities in an Apr 18 research report says: "Lian Beng Group’s (LBG) 3QFY11 earnings were in-line with our estimates after stripping away one-off gains. We raise our FY2011 and FY2012 earnings by 7.5% and 12.4% respectively, on the back of higher other income and gain from sale of investment property.
"LBG is set to ride on Singapore's current building boom, from both public and private projects and its ventures in private residential and industrial developments will help boost its bottom line. With its robust order book, strong financial position and strong earnings growth, we think LBG is able to double its dividend payout to 1.6 cents, which works out to a decent yield of 4.4%.
"Despite the 14% run up in price since our initiation last week, it still trades at 4x prospective P/E – way cheaper than its peers. Target price of 67 cents (86% upside), based on a target P/E of 7x FY11/12 blended earnings. MAINTAIN BUY."
Sigh.. I sold my holdings already before the recent run. Was holding it for more than 6 months, thought I was wrong and the market was right, make no loss but had a small 10% profits. Would be more than 30 % had I hold on till 3 quarter. Learning, the stock market is really interesting though, never stop gaining insights and also never stop making mistakes, luckily no fatal mistakes so far. Nextinsight is one of the best financial forum, learn quite a bit from seniors here. I can't remember clearly switching to which counter, think it's anchun, well now it's just above waters, not worth the switch..
Lian Beng is going strong despite the market crisis ---now 36 cents --- as it has an orderbook that is solid and will support it for the next 2-3 years.
Koon is down, now 24 cents -- sorry to say, its recent results were not inspiring.
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