From DMG
Lian Beng: 1HFY10 profit climbs 29% to S$11.3m (SGXNet)
The news: Lian Beng reported a 28.6% growth in earnings to S$11.3m for 1HFY10. This was
achieved on the back of a 4% rise in revenue to S$157.6m. The top-line growth was driven by
revenue recognition on progress made in the construction of various projects including the Ritz
Carlton Residences in Cairnhill and camp facilities at Kranji, together with contribution from the
property development and ready-mixed concrete business. Lian Beng’s order book stood at a
healthy S$598m, which should provide it with a constant flow of construction activities through
FY13.

Our thoughts: The 2QFY10 numbers do not look as pretty. Revenue fell 36.3% YoY to
S$72.483 and earnings were down 12.2% YoY to S$6.0m. On a bright note, we noticed that
gross profit margin improved from 10.9% a year ago to 15.9% in 2QFY10, perhaps due to
improving economic situation and hence, lesser price cutting from competitors. Following the
successful launch of various private property developments, the company is hopeful of an
increase in demand for construction services from the private sector in the ensuing 12 months.
We do not have a rating on this stock.