BBR

BBR: 2Q12 results weaker. Revenue was $59.1m, -53% yoy, mainly due to decreased revenue recognized from general construction projects, and partially offset by higher revenue from property devt and specialized engineering divisions. Gross margins however improved to 14.6% from 8.5% yoy, mainly due to difference in project mix. Net profit was $2.9m, -37% yoy. Mgt says 2Q12 numbers were reasonable considering that the business environment continues to be challenging; nevertheless remains guidance to be profitable for FY12. Separately, BBR secured a $153.1m contract from Ascendas Land (Singapore) to design and construct a mixed-use devt at Fusionopolis Phase 5 at Buona Vista. Work will start 1 Sep ’12 and be completed in Aug ’14. This brings BBR’s order book to $773m, with projects lasting up to 2015. Stock trades at 4.6x P/E, 0.65x P/B.