Q&A - Page 2

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Executive director Ong Lay Koon met investment professionals at the Group's results briefing held at Lian Beng's HQ on Thursday. Below is a summary of questions raised at the meeting, and her replies.

Q: What rental income do you expect to generate with these new property developments, including dormitories?
Including dormitories, Prudential Tower, the Melbourne project, we are targeting S$20 million a year in rental income by FY2016.

Q: Is your export business of ready-mixed concrete profitable?
Yes, we are breaking even after expenses and depreciation. We are trying to tender for premix projects.

LBG SP	53.5 cents
52-week range	46.1 – 68.2 cents
Market cap	S$267.4 million
Current PE	2.11 X
1QFY2016 Pre-tax margin	25.5%
NAV per share	96.42 cents
Dividend yield	1.89%

Q: What was the average price you paid for your Treasury shares?

We have 23 million Treasury shares with average price above 50 cents.

Q: What do you look at to decide whether to repurchase shares?
There are guidelines under the share buyback mandate, such as purchase price being no more than 105% of the average closing price of the last 5 market days. We also look at our book value when deciding whether to repurchase shares. At one time, we bought at about 60 cents because our book value was about 70 cents then.

Counter Name	Last	Change
AEM Holdings	2.410	0.040
Best World	2.460	-
Boustead Singapore	0.955	0.010
Broadway Ind	0.133	-
China Aviation Oil (S)	0.915	-0.005
China Sunsine	0.420	-
ComfortDelGro	1.490	0.010
Delfi Limited	0.895	-
Food Empire	1.270	0.010
Fortress Minerals	0.300	-
Geo Energy Res	0.305	-
Hong Leong Finance	2.500	-
Hongkong Land (USD)	3.160	0.020
InnoTek	0.560	0.010
ISDN Holdings	0.310	0.005
ISOTeam	0.044	-
IX Biopharma	0.042	-
KSH Holdings	0.250	-
Leader Env	0.047	-
Ley Choon	0.045	-
Marco Polo Marine	0.068	0.001
Mermaid Maritime	0.141	0.002
Nordic Group	0.305	-
Oxley Holdings	0.088	-
REX International	0.134	0.001
Riverstone	0.795	-
Southern Alliance Mining	0.430	-
Straco Corp.	0.485	-
Sunpower Group	0.210	-
The Trendlines	0.067	-
Totm Technologies	0.022	-
Uni-Asia Group	0.820	-
Wilmar Intl	3.370	-0.100
Yangzijiang Shipbldg	1.730	-0.010

Counter Name

Last

Change

AEM Holdings

2.410

0.040

Best World

2.460

Boustead Singapore

0.955

0.010

Broadway Ind

0.133

China Aviation Oil (S)

0.915

-0.005

China Sunsine

0.420

ComfortDelGro

1.490

0.010

Delfi Limited

0.895

Food Empire

1.270

0.010

0.300

0.305

2.500

3.160

0.020

InnoTek

0.560

0.010

ISDN Holdings

0.310

0.005

0.044

0.042

0.250

0.047

0.045

0.068

0.001

Mermaid Maritime

0.141

0.002

Nordic Group

0.305

Oxley Holdings

0.088

REX International

0.134

0.001

Riverstone

0.795

Southern Alliance Mining

0.430

0.485

0.210

0.067

0.022

0.820

3.370

-0.100

Yangzijiang Shipbldg

1.730

-0.010

Comments

#1 Jimmykoh 2015-10-17 10:00

At NAV of 96+cents, they should infact do an aggressive sharebuyback. She mentioned they did a buyback at 60+ cents when NTA was 70 cents, so by the same logic, at NTA of 96+ cents, with share price at 53 cents, wouldn't it be logically to buyback even more shares???

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