Would like to share this stock which I am vested in. Lum Chang is a property developer cum construction company. Among other companies in the same industry, Lum Chang fundamentals outshine the rest.
Revenue has been increasing YOY. For FY2013, revenue for the year ended June 30 climbed by 75 per cent to $494.6 million.
Dividend remains the same as the past few years at 2c (5.8% yield).
Trading at P/E 6.24 and P/B 0.78, valuations are pretty cheap and decent.
ROE of more than 10% consistent with past few years.
Slightly higher levels of gearing this year is due to purchase of freehold building in London. This purchase will help the company generate rental income and increase revenue for the years to come.
Outstanding book order close to 1billion SGD + Joint Ventures with Frasers Centrepoint + Esparina Residences TOP = No worries for the future till at least 2016.
Note: This is not a buy/sell call. Any action taken must be done with due diligence.
