Tiong Seng: DBS Vickers initiates Buy with $0.36 TP based on 30% discount to SOTP valuation, citing civil engineering contractor has $1bn orderbook, which provides earnings visibility for next few years. Projects at hand range from office, residential to public infrastructure jobs. Hence, the company is not over-reliant on any single project category. Tiong Seng also stands out for its use of advanced construction methods which reduce time, manpower needs by up to 50%.
Adds company has niche presence in 2nd, 3rd-tier Chinese cities. Shares +6.3% at $0.255.
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