Libra

Libra: After a series of contract wins announced, Libra’s wholly owned M&E subsidiary, Kin Xin Engineering, had successfully attained upgrades to a L6 category for its BCA licences related to air-conditioning, refrigeration and ventilation works (workhead ME01) as well as integrated building services (workhead ME15). The upgrades would enable them to tender for an unlimited amount of public government projects, whereas previously they were constrained to projects with contract values below S$14m. Ahead of its FY14 results to be released, OCBC believes the group could achieve an estimated 8x growth in earnings to $4.7m. With a good dividend yield of 7.0% expected, OCBC maintains Buy with a fair value estimate of $0.33.