Lian Beng

Lian Beng: 4QFY12 results. Revenue fell 13% yoy to $111.4m. Net profit however remained flat at $11.5m, on a combination of one-off gains from 4Q11 and one-off losses in 4Q12. On a positive note, operating margin climbed an impressive 3.6 ppt to 14%, due to better project mgt. Mgt recommended total div of 2cts (final 1ct + special 1ct). For the full yr, Lian Beng’s construction segment remains its biggest revenue contributor at 75%. Its ready mixed concrete and property devt segments contributed 17% and 7% to total rev respectively. Revenue growth in ready mixed concrete was particularly strong, +83% in FY12, due to capacity expansion and strong demand from the construction sector. Order book contracted to $653m from $742m qoq, but is still double of FY12 construction revenue. Nevertheless, mgt remains cautiously optimistic about the sector over the next 12 mths, and said it will remain active in tendering for new projects. Added that construction demand is expected to remain strong, especially from public housing devts, institutional buildings and civil engg projects. OCBC maintains Buy with TP $0.47.