|
The share price of Ley Choon Group -- which provides services related to underground utility infrastructure and road works -- ran up an eye-popping 14.6% (from 4.8 cents to 5.5 cents) today after The Business Times published an article on it.
|
Now, in that Jan announcement Ley Choon did not update its outstanding orderbook but it's easy to make an educated guess.
We plotted (chart below) the past outstanding orderbooks (announced with half-year results).
It was last at S$220 million when Ley Choon released its 1HFY25 results back in Nov 2024.
We assume Ley Choon fulfills ~S$10 million of contracts a month, an average that was seen in FY2024 and FY2023.
Thus, from the outstanding $220 million in Nov, subtract $20 million (2 months of contract fulfilled) + $132 million (newly announced contracts) = $332 million oustanding orderbook.
As the chart shows, the order book is at its highest in the past 5 years.
Another positive is that the gross margin has been trending up (table below), which portends well for future net profits.
|
FY20 |
FY21 |
FY22 |
FY23 |
FY24 |
1H |
|
|
GP margin |
7.5 |
7.9 |
11.7 |
13.2 |
16.3 |
20.6 |
Reflecting its gross margin expansion, Ley Choon's net margin jumped to 11.4% in 1HFY2025, compared to 8.6% the year before.
1H2025 revenue saw a modest bump of 2.5% year-on-year to S$64.4 million, but net earnings soared by 35.9% (chart below), thanks to lower finance costs. 
EPS for 1HFY25 was 0.486 cent/share. Annualised PE for FY25 is 5.7X
See also: LEY CHOON: 8 years on, fulfills its debt repayment. It can't wait to reward shareholders too
