Summary: Last Friday evening, Libra announced that it has been awarded S$9.5m of M&E contracts, which brings its order book up to an estimated S$94.4m year-to-date. This is ~3.0x of last year’s revenues (FY13: S$31.5m) and represents strong order book momentum for the group which has announced S$21.6m of new contracts over the last two months. The latest awards comprise a S$5.4m M&E contract for a proposed condo project at Tampines St 86 (to be completed in Jul-16), and a S$4.1m sub-contract for a teaching facilities building (Block 8A) at Temasek Polytechnic (to be completed in Aug-15).

We believe the new management team is gaining good traction in terms of growing business volumes, while leveraging on tailwinds from the firm public construction outlook. Since our initiation on Libra as our top pick in the small cap space on 27 Oct, its share price has appreciated 7.5% to date and we continue to see value at current levels given significant potential for earnings and dividends growth ahead. Reiterate BUY with an unchanged fair value estimate of S$0.33.

Source: OCBC Research - 17 Nov 2014