Excerpts from latest analyst reports....
Maybank KE highlights Lian Beng's slew of upcoming launches
Analyst: Alison FOK
Launches to start in October. Lian Beng has received the outline planning provision for its respective stakes in property development, and we expect the launch of Hong Leong Gardens to take place in October.
The group holds a 10% stake in Hong Leong Gardens with Oxley Holdings leading the consortium.
It is zoned for mixed use, and we expect selling prices for residential and retail space at SGD1,500psf and SGD3,000psf, respectively.
Secured contracts. Construction remains the core business, accounting for 75% of sales.
Lian Beng has secured a 50% stake in a contract worth SGD169m for 361 units in Thomson Grand with Paul Y C&E.
Works started in August and this job has boosted its construction order book to SGD736.4m, which will be recognised through to 2015.
Steamrolling ahead. We like Lian Beng for its superior construction order book with an even mix of public and private projects, as well as a slew of properties slated for launch over the next few months.
Maintain BUY with a target price of SGD0.63 pegged at 6x FYMay13 PER, backed by an attractive dividend yield of 4.7%.
Recent story: LIAN BENG GROUP: $43 m free cash flow a year till 2015
OSK-DMG says AUSGROUP worth 75.5 cents
Analyst: Lee Yue Jer
Game-changing news. AusGroup announced yesterday that it is moving ahead with its Apr-2011 plans to list on the ASX.
The key change is that instead of duallisting, it now plans to spin off its operating subsidiaries on the ASX and distribute shares in this new Australian-listed to the current shareholders of AusGroup.
Win-win (or at least, no-lose) situation. If this plan goes through, AusGroup shareholders stand to gain as the industry average forward P/E on the ASX is 10x versus AusGroup’s 5.4x today. This represents a clear near-term catalyst.
If the deal is blocked by SGX (not impossible as other companies have attempted similar actions before, though the RTO aspect of this plan seems to be aimed at resolving listing-rules requirements), AusGroup will still be worth $0.755, based on 9x FY13F EPS.
It will definitely have benefited from the increased market attention as a result of this action, which should help the stock re-rate on its successful operational turnaround and strong earnings growth profile.