Libra Group’s FY15 revenue grew 42.3% to S$90.6m, driven by higher revenue attained by the mechanical and electrical engineering (M&E) segment, manufacturing segment, as well as the building and construction solutions segment. Overall gross profit margin however dipped from 22.6% to 19.6% this year, attributable to the lower margin of the M&E segment, which was caused by more competitive pricing submitted for projects secured.

Nonetheless, PATMI grew 18.1% to S$6.3m. Excluding ‘other income’ of S$0.9m, PATMI of S$5.4m was within our expectations. Pending more information from an analyst briefing later, we keep our BUY rating and fair value estimate of S$0.27 unchanged for now. A final DPS of 0.7 S-cents was declared, bringing total DPS to 1.2 S-cents, similar to last year.

Source: OCBC Research - 29 Feb 2016