Libra Group

Libra Group: Recently announced that it has been awarded $9.5m of M&E contracts, which brings its order book up to an estimated $94.4m year-to-date. This is ~3.0x of last year’s revenues (FY13: $31.5m) and represents good momentum for the group which has announced $21.6m of new contracts over the last two months. The latest awards comprise a $5.4m M&E sub-contract for a proposed condo project in Tampines (to be completed in Jul-16), and a $4.1m sub-contract for a teaching facilities building at Temasek Polytechnic (to be completed in Aug-15). OCBC believes the new management team is gaining traction in terms of growing business volumes, while leveraging on tailwinds from the firm public construction outlook. Libra is OCBC's top pick in the small cap space and house continues to see value at current levels given significant potential for earnings and dividends growth ahead. OCBC reiterate BUY with TP of $0.33.