Lian Beng

Lian Beng: Counter sets a new 5-year high at $0.65, which comes in tandem with a rise in investors’ interest, where we note that in recent weeks a local broker reiterated its Buy call on Lian Beng, while another broker featured the group in an unrated report. Increasingly, there are growing expectations of a bumper 3QFY4 performance from Lian Beng, following management’s guidance that it will recognize revenue from its 55% owned industrial development, M-Space project which if fully sold, in 3Q14, sparking hopes of a potential special dividend. With the group’s 55% owned 6,290-bed workers dormitory at Mandai operating at full capacity, Lian Beng has also been slowly diversifying into the worker’s dormitory segment, with the group recently emerging as a substantial shareholder in dormitory operator Centurion via a 5.03% stake, giving scope for further tie-ups between the two groups. Separately, we note that management had conducted a series of open market share transactions, over the past few months, signalling their vote of confidence on the company. Lian Beng currently trades at 6.0x forward P/E.