Lian Beng announced FY14 PATMI of S$87.1m, increasing 19.4% mostly due to a boost from the TOP of M-space, its fully sold 55%-owned industrial development, and higher contributions from its property development segment. Excluding fair value gains of S$37.2m booked in FY14 (we note that the group had changed its accounting policy for investment properties from cost method to fair value model in 4QFY14), we judge Lian Beng’s FY14 figures to be mostly within expectations.

Lian Beng continues to enjoy a healthy construction order book of S$1.2b. A dividend of 2.25 S-cents has been proposed. Maintain HOLD with an unchanged fair value estimate of S$0.65.

Source: OCBC Research - 24 Jul 2014