The Ongs last bought Lian Beng Group shares in Feb 2014 but are making a comeback on lower share prices:
|No. of shares||Average price|
|Ong Sek Chong & Sons Pte Ltd||19 Dec||500,000||46 c|
|8 Dec||329,200||45.456 c|
|7 Dec||200,000||45.5 c|
|6 Dec||195,200||45.482 c|
|Ong Pang Aik||26 Sept||2,000,000
♦ This month (Dec 2016), Ong Sek Chong & Sons Pte Ltd bought 2,724,200 shares. (This is a vehicle controlled by Lian Beng Group executive chairman Ong Pang Aik and an executive director, Ong Lay Huan, who heads the group's contracts department.)
♦ In Sept 2016, chairman Ong Pang Aik made a single purchase of 2 m shares.
In total, the share purchases cost S$2.2 m.
They were made at prices which were way below the 70-c level they had traded at for many months in 2014.
The share price is down as Lian Beng Group is facing headwinds from its core construction business.
In its most recent quarterly report, 1QFY2017, revenue decreased 47.8% year-on-year (y-o-y) to S$70.8 million mainly due to a decrease in revenue generated from the construction segment and ready-mixed concrete segment.
Gross profit, however, was up 21.7% to S$18.5 million on higher profit recognition from the construction division.
Net profit fell 59.8% to S$13.5 million.
Management has said that Broadway Plaza has long-time tenants and decent rental yield. As for the commercial HDB properties, NTUC Fairprice is the tenant in three of them while Courts is the tenant in the fourth property.
♦ Khong Guan Industrial Building, an 8-storey freehold light industrial building in the Tai Seng area. Cost: S$31 million.