Lian Beng reported a 47.8% decrease in revenue to S$70.8m in 1Q17, mainly due to lower contributions from the construction segment and ready-mixed concrete segment. The Group's gross profit nonetheless increased 21.7% YoY to S$18.5m mainly due to the higher profit recognition from the construction division. As the share of results of associates and JVs dropped 71.7% to S$8.1m, mainly due to the completion of the NeWest and the Midtown and Midtown Residences, PATMI dropped 59.8% YoY to S$12.7m. Going forward, the group expects the construction industry to remain challenging. We put our rating under review pending further details from management.

Source: OCBC Research - 14 Oct 2016