For info, Lian Beng is trading cum dividend: 1 cent final dividend and 0.6 cent special dividend. Yield is about 4.2% based on current 37.5 cents (yes, the stock is firm and creeping up, it seems, despite the 280-point drop in Dow Jones overnight!). Ex-date for dividend is Oct 4 = another 1 week plus.
Construction firm Lian Beng Group Ltd said it has secured contracts worth S$98 million for building works on a public housing project, a factory and a workers' dormitory in Singapore. Lian Beng at 34.5 cents, still a steal --- but the market is not warming up to it. What a pity!
Maybe because Lian Beng is foraying into property development when land bank is expensive and analysts are forecasting a significant rise in unsold private housing.
Lian Beng is down 1 cent t0 34 cents in sympathy with the property stocks like Capitaland and CityDev. However, Lian Beng has an orderbook that is stretching all the way to 2014
Lian Beng has pretty good set of results: net profit of S$30.1 million for HY12; up 33.4% year-on-year.
The balance sheet is healthy with cash and cash equivalents 83.2% higher at S$184.8 million as at HY12 from S$100.9 million at HY11
The net cash is about S$83 million, after deducting the bank borrowings.
Order book of S$772 million as at 30 November 2011 will provide the Group with continuous flow of activities through FY15.
Order book $772 million ---> good cashflow
Land tender prices coming down ---> opportunity to stock land bank and for future expansion of property development segment
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