Libra Group's 1H16 revenue increased 13.1% YoY to S$44.2m, but PATMI fell 26% to S$1.6m. The gain in revenue was driven by the mechanical and electrical engineering (“M&E”) segment, which grew 39.2% YoY to S$31.8m. Both manufacturing segment as well as the building and construction solutions segment sales decreased by 17.7% and 25.9% respectively. The group also faced higher expenses from several fronts, resulting in a decline in bottomline.

We note that FY15 results were backloaded in the latter half of the year, thus pending more information from an analyst briefing, we place our fair value estimate under review, while we maintain our BUY rating. No interim dividend has been declared as well, vs. 0.5 S-cents/share a year ago.  

Source: OCBC Research - 12 Aug 2016