Ley Choon

Ley Choon: recently announced the proposed issue of $15m in Islamic convertible instruments arranged by Islamic Bank of Asia (JV between DBS and Mid-East investors). The issue is still in the midst of finalization and is expected to be completed by the end of 1Q FY14. Voyage Research views this as a further affirmation for Ley Choon’s near term growth plans, which include bidding for public projects from PUB and LTA, and overseas expansion in Brunei and Yantai. The house maintains its Overweight rating and TP $0.28, supported by an expected dividend yield of 5.8%.