Libra clinches $9.5m in M&E contracts

Bringing its order book up to $94.4m YTD.

Last Friday evening, Libra announced that it has been awarded S$9.5m of M&E contracts, which brings its order book up to an estimated S$94.4m year-to-date.

This is ~3.0x of last year’s revenues (FY13: S$31.5m) and represents strong order book momentum for the group which has announced S$21.6m of new contracts over the last two months. 

The latest awards comprise a S$5.4m M&E contract for a proposed condo project at Tampines St 86 (to be completed in Jul-16), and a S$4.1m sub-contract for a teaching facilities building (Block 8A) at Temasek Polytechnic (to be completed in Aug-15).

OCBC believes the new management team is gaining good traction in terms of growing business volumes, while leveraging on tailwinds from the firm public construction outlook. Since OCBC’s initiation on Libra as the top pick in the small cap space on 27 Oct, its share price has appreciated 7.5% to date and OCBC continues to see value at current levels given significant potential for earnings and dividends growth ahead.