Lian beng and the construction sector

Tai Sin -- keep your eye on this stock.
Waiting for final dividend to be OK-ed at AGM soon.
The full year yield is 8+% ... 2.1 cents dividend by 25 stock price x 100% = 8.4%
TAI SIN ELECTRIC: Electrifying 53% gain in stock price in year-to-date

 

YONGNAM breadking news on nextinsight. MONDAY to rally 3.bp.blogspot.com/-4DTspoRiwF0/UG_f1x_ix...Yongnameroadshow.png

Perhaps there will be a knee jerk reaction tomorrow based on  Lian Beng's 44.9% year-on-year (yoy) decrease in profit to shareholders to S$10.5 million for 1QY2013.

Note that 1Q12 ($19.1 million in net profit) included a one-off gain of S$7.9 million on the sale of an investment property.

Got lower revenue recognition in 1Q13 because of the adoption of revised financial reporting standard INT FRS 115.

Ah Beng, so is it due to the one-off gain or a revised accounting standard or both? That means LB's qtrly profit prospects would only be abt S$10mil from now onwards, which is not too impressive. Is there any other fundamental reason/s as the construction activities would have to slow down looking ahead. Thanks.

Or should I say very competitive amongst the construction companies. Regards.

There is a hell of a lot of work for construction companies in the next few years yet the boom times are not pushing the valuation of these companies up beyond 4-5-6 X PE. Perhaps it is time for a re-rating of this bunch of stocks, such as Lian Beng, Tiong Seng, Yongnam. What do you think?