Ley Choon

Ley Choon: Voyage initiated on group with an Increase Exposure and $0.28 TP, implying a FY13F P/E of 12.6 and a P/B of 1.8. Public sector construction demand remains strong, with an estimated demand of $11b and $14b annually for 2014 and 2015. The upcoming public projects will provide Ley Choon with opportunities to increase their order book. Further, as one of the only three asphalt premix producers in Singapore, Ley Choon is in a very strong position to bid for projects that require heavy asphalt usage i.e. road resurfacing or to produce asphalt for sale to 3rd party contractors. Overseas, Ley Choon is exporting its expertise in public infrastructure projects to Brunei and is building a construction waste recycling plant in Yantai, Shandong province. In Brunei, the company has secured nine contracts worth $84m for public infrastructure projects and the plant in China is expected to complete in early 2014. National development plans in both countries could see Ley Choon taking on more projects in Brunei and China.