Stock Name: Lian Beng
Company Name: LIAN BENG GROUP LTD
Research House: DMG
DMG & Partners Securities in an Apr 18 research report says: "Lian Beng Group's (LBG) 3QFY11 earnings were in-line with our estimates after stripping away one-off gains. We raise our FY2011 and FY2012 earnings by 7.5% and 12.4% respectively, on the back of higher other income and gain from sale of investment property.
"LBG is set to ride on Singapore's current building boom, from both public and private projects and its ventures in private residential and industrial developments will help boost its bottom line. With its robust order book, strong financial position and strong earnings growth, we think LBG is able to double its dividend payout to 1.6 cents, which works out to a decent yield of 4.4%.
"Despite the 14% run up in price since our initiation last week, it still trades at 4x prospective P/E - way cheaper than its peers. Target price of 67 cents (86% upside), based on a target P/E of 7x FY11/12 blended earnings. MAINTAIN BUY."
Company Name: LIAN BENG GROUP LTD
Research House: DMG
DMG & Partners Securities in an Apr 18 research report says: "Lian Beng Group's (LBG) 3QFY11 earnings were in-line with our estimates after stripping away one-off gains. We raise our FY2011 and FY2012 earnings by 7.5% and 12.4% respectively, on the back of higher other income and gain from sale of investment property.
"LBG is set to ride on Singapore's current building boom, from both public and private projects and its ventures in private residential and industrial developments will help boost its bottom line. With its robust order book, strong financial position and strong earnings growth, we think LBG is able to double its dividend payout to 1.6 cents, which works out to a decent yield of 4.4%.
"Despite the 14% run up in price since our initiation last week, it still trades at 4x prospective P/E - way cheaper than its peers. Target price of 67 cents (86% upside), based on a target P/E of 7x FY11/12 blended earnings. MAINTAIN BUY."
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