Building boom: Lian Beng Group’s profit hits a record $48.2m in FY11

Its earnings for Q4 alone was up 73.8% yoy to $11.6m.

According to DMG, the Q4 revenues also jumped 21% yoy to $127.4m, on the back of strong construction
demand.

Here’s more from DMG:

Lian Beng Group’s 4QFY11 earnings were in-line with our estimates, coming in at S$11.6m, up 73.8% YoY, on the back of strong construction demand. FY11 was a record year, with earnings hitting S$48.2m, well within our expectations of S$47.6m. 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. Despite the 8.3% run up in price over the last two weeks, it still trades at 3.8x prospective P/E - cheaper than its peers. Maintain BUY on a higher TP of S$0.715 (83.3% upside), based on a target P/E of 7x FY12 earnings.

Earnings in line with expectations. 4QFY11 earnings surged 73.8% YoY to come in at S$11.6m. 4QFY11 revenue jumped 21% YoY to S$127.4m, on the back of strong construction demand. FY11 earnings more than doubled YoY, leaping from S$24m to S$48.2m, making FY11 a record year for earnings.

Strong order book of S$839m. As at May 2011, LBG has a healthy order book of S$839m (up from S$661m in Feb 11). The contracts will run till FY14, lending some visibility to its earnings. LBG’s cash hoard, which stands at S$149.9m, will allow it to grow its property development business.

Dividend doubled. With its growing order book, strong financial position and earnings visibility, LBG has declared a total of 1.6S¢ per share as dividends (1S¢ as first and final, 0.6S¢ as special dividend), up from 0.8S¢ last year (0.4S¢ as first and final, 0.4S¢ as special dividend). This translates to a decent dividend yield of 4.1%.

Attractively valued at 3.8x FY12 P/E. On the back of strong construction demand and LBG’s strong track record of project wins (it secured two projects worth S$279.5m in Jun 11), we estimate LBG’s FY12 earnings to come in at S$54.1m, which suggests a prospective P/E of just 3.8x, versus its peers which are trading at ~5x. We roll over our valuation to 7x FY12 EPS and derive a higher TP of S$0.715 (S$0.67 previously).

You're the reader we write for. You're also the person our partners want to reach.

If that sentence describes you — a founder, a C-suite, someone whose attention companies pay good money for — then you already understand why SBR works. We've spent twenty years earning the trust of readers exactly like you. Which is exactly what makes this an interesting place for your company to show up, too.

The ways it can show up are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The right fit depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If your company has something this audience should know about, we'd like to hear what you're working on.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia

Top News

30 One-Sentence Stories From People Who Have Built Better Habits

None of these stories are mine. They were sent to me by readers of Atomic Habits. My hope is that these examples will illustrate how real people are putting the book into practice. They will show you what people are actually doing to build good habits and break bad ones. And hopefully, they will spark some ideas for how you can do the same.

news conversion

SBR 5 Lorem Ipsum News 2 [8 May]

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

SBR 4 Lorem Ipsum [8 May Top Stories]