Lian Beng has clinched a $119.5m contract to build The Scala, a 99-year leasehold condominium development located at Serangoon Avenue 3. Notably, this is the second building contract the Group has secured since the beginning of FY11 (June YE). Recall that in late June, the Group was awarded a $88.28m contract by UOL Development to build a 36-storey residential development at Spottiswoode Park Road. This latest contract will boost Lian Beng’s order book to approx. $965m.
Lian Beng has a strong balance sheet with net gearing reduced to 0.17, from 0.67 a year ago. The stock is now trading at 5.5x FY11 PER, based on Bloomberg estimates.
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