Soilbuild Construction

Soilbuild Construction: Soilbuild Construction secured a $38.6m contract to build a global distribution center for an affiliate of Pepperl+Fuchs, the leading developer and manufacturer of electronic sensors and intrinsic safety components for the global automation market that is headquartered in Germany. Construction for the proposed five-storey high-tech industrial building at Pioneer Turn is expected to be complete by 3Q15. The fifth contract won by the group raises order book to $531.5m to-date. More notably, reliance on the property development business from its parent, Soilbuild Group, has been declining over the past three years- with revenue derived reducing from 100% in FY10 to 58% in FY12. The spinoff of the construction business in May '13 has been rather successful, with the company obtaining a permit to provide construction and related services in Myanmar just five months after. Investors may be keeping a keen eye in this space for any new developments to spearhead the company into its next leg of growth. At $0.25, Soilbuild Construction trades at 6.4x trailing P/E.