Company Name: LIAN BENG GROUP LTD
Research House: DMG
DMG & Partners Research has initiated coverage of Singapore-listed construction firm Lian Beng Group (LIBG.SI) at buy with a target price of $0.61.
Lian Beng has a robust order book of $762 million as of November 2010, which will provide earnings visibility until the fiscal year ended 2013, DMG said.
Lian Beng is expected to recognise $41.7 million from property development in 2011, making up 8.3% of the year's revenue, DMG said, adding that contributions from this segment may accelerate with the progressive recognition of three other property projects.
DMG said the stock is attractively valued at 3.8 times price-earnings ratio for 2011 and construction demand is likely to remain strong.
At 10:20 a.m., Lian Beng shares were 1.59% higher at $0.32 on a volume of 1.6 million shares. The stock has risen around 5% so far this year.
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