Tiong Seng

Tiong Seng: announces that its 20/80 JV with Kajima Overseas Asia has been awarded the contract by MediaCorp for the proposed erection of a 12 storey Media Complex at Mediapolis @ One North at Ayer Rajah Ave, expected to commence in Nov ‘12. The contract is worth ~$413m, hence the attributable contract value to Tiong Seng is ~$83m. With this contract, Tiong Seng’s orderbook stands at ~$1.5b, one of the largest amongst contractors listed on SGX. This compares with Tiong Seng’s FY11 revenue at $415m. The stock trades at 6.2x P/E. Maybank KE and DBSV have Buy ratings with TP $0.33, $0.25 respectively.