Company Name: LIAN BENG GROUP LTD
| Research House: OCBC | Price Call: BUY | Target Price: 0.47 |
OCBC Investment Research lowered its price target on Singapore construction firm Lian Beng Group to $0.47 from $0.51 and cut this year’s earnings estimates, citing slow growth in its construction business.
Lian Beng’s shares were flat at $0.41, and have gained 19% since the start of the year. OCBC kept its buy rating.
The broker cut its revenue and net profit estimates on Lian Beng for the year ending June 2012 by 16 and 10% respectively.
“The street, including ourselves, had previously not expected Lian Beng’s execution of construction projects to slow,” OCBC said after the company’s results.
Lian Beng said its nine-month net profit rose 10% to $40.5 million from a year ago, helped by improving gross profit margins. Revenue fell 12% to $333.7 million, mainly due to lower construction work recognised.
OCBC said the company’s order book fell to $742 million from $772 million at the end of the second quarter.
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