Lian Beng

Lian Beng: Grp has secured 2 construction contracts worth a combined $201m, bringing its order book to a record of nearly $1.1b. The latest contracts are for the building of two multiple-user light industrial developments for Oxley Holdings. Latest contracts underpins earnings visibility for the next 3 years. The deals follow a $220m contract for Bartley Ridge condominium, which it clinched just last wk, and a $117m contract to build the Skies Miltonia condo in Yishun, which it won on Feb 18. Separately, also recall that Lian Beng together with JV partner, Centurion, had recently soft-launched Spottiswoode Suites, and received an approximate take-up of slightly over 50%. Over 100 units are estimated to have achieved ASP of $2,200psf, with a 3-4% premium to Spottiswoode 18 and Spottiswoode Residences launch prices. If fully sold, Maybank-KE estimates $6.9m pre-tax profit for the group’s 50% stake, to be recognised over FY14-17E. With a burgeoning orderbook and on back of the latest contract wins, would not be surprised if investors begin monitoring the stock more closely.