Stock Name: Lian Beng
Company Name: LIAN BENG GROUP LTD
DMG & Partners Securities in a Sept 20 research report says: "Lian Beng Group (LBG) announced that it would be listing two of its subsidiaries on the Taiwan Stock Exchange. If shareholders' approval is obtained during the EGM, we estimate the listing to take place six to nine months from now.
"With $149.9 million cash on hand (excluding the potential IPO proceeds), LBG is well positioned to accumulate land bank for property development. On the back of strong order books of $839 million (as at May 11) and a good track record of project wins, we estimate LBG's FY2012 earnings to come in at $53.5 million, which suggests a prospective P/E of 3.4x.
"Trading at a mere 3.4x prospective P/E, we believe it has the capacity to trade up to the sector average of 7x for a target price of 71 cents. MAINTAIN BUY."
Company Name: LIAN BENG GROUP LTD
| Research House: DMG | Price Call: BUY | Target Price: 0.71 |
DMG & Partners Securities in a Sept 20 research report says: "Lian Beng Group (LBG) announced that it would be listing two of its subsidiaries on the Taiwan Stock Exchange. If shareholders' approval is obtained during the EGM, we estimate the listing to take place six to nine months from now.
"With $149.9 million cash on hand (excluding the potential IPO proceeds), LBG is well positioned to accumulate land bank for property development. On the back of strong order books of $839 million (as at May 11) and a good track record of project wins, we estimate LBG's FY2012 earnings to come in at $53.5 million, which suggests a prospective P/E of 3.4x.
"Trading at a mere 3.4x prospective P/E, we believe it has the capacity to trade up to the sector average of 7x for a target price of 71 cents. MAINTAIN BUY."
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