Sim Lian: good FYJun10 results. Revenue +32% yoy to $760m, largely due to higher revenue recognition from more projects, ie Clover by the Park, Parc Lumiere, Linncoln Residences and Rochelle at Newton. Net profit +173% to $108m, boosted mainly by high operating leverage. Company doubled dividend to 3.7cts, giving a decent 7.1% yield. Also proposed 1-for-2 bonus issue...
Outlook positive, underpinned pipeline of Construction and Development projects secured. In FY10, the Construction division bagged two new HDB project worth $180m, while the Development division won two tenders for land parcels for a condo and a DBSS development, both located in Tampines. Stock trades at 2.8x PE, at par to NAV/sh. Prior to results, BNP rated as Hold with $0.51 target.
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