Lian beng and the construction sector

41.5 cents close today.
Lots of goodies > LIAN BENG GROUP: $43 m free cash flow a year till 2015

Although I have Lian beng, I prefer chip eng seng as it has a much higher net profit margin to earning compare to lian beng.

Before my boss comes... just checked the market. Construction stocks are getting a lot of attention after the announcment of Thomson MRT Line.

Yongnam.... Pan-United.....Hock Lian Seng.....Tiong Woon.

Comparing Pan-United with Yongnam >

Pan-United PE ratio already almost 10X.
Dividend yield is 5-6%.

On the other hand, Yongnam still 5X PE,
Dividend yield is 4-5%.

Yongnam is stuck at around 23-23.5 cents. How to unglue it?

I think it is only matter of time for Yongnam to play the catch up... especially with the large amount of infrastructure projects coming up NOT only in Singapore but the region. I was recently in a seminar and was told that Thailand is also spending aggressively in their infrastructure with new airports as well. Contract win in the near future will trigger interest and price will move north.. meanwhile i am happy to sit and wait at this price with a 1 cent yearly dividend which is still much better than the bank interest. I will limited downside for this counter as they have been at this price level for years... and didn't take care of the recent rally. Regards erelation

Cheap undervalued at 43 cents, Lian Beng has such a gigantic orderbook that it would qualify as a defensive stock.