Goh highlights an interesting data point: Two hundred new construction jobs were created in 1Q2019, following declines in the previous 11 consecutive quarters. “This shows that the construction industry has bottomed out, and that things are starting to improve,” he says. Lian Beng’s stock, meanwhile, is still trading at 0.35 times book value.
SINGAPORE (July 15): On July 8, construction company Lian Beng Group announced that it had won contracts worth $235 million to build a logistics centre at Boon Lay. The company’s net construction order book now stands at about $1.5 billion. That is about 58% higher than the $947 million at the end of its last financial year ended May 31, 2018.
Two days earlier, Lian Beng had been the topic of a presentation by Goh Tee Leng, portfolio manager of Heritage Global Capital. Goh, who had recommended the company at The Edge Singapore’s investment forum last December, said at the most recent edition of the forum held on July 6 that he remained favourable on the stock. He attributes this to the fact that construction demand is expected to grow as the government spends billions on major infrastructural projects such as the Punggol Digital District and Changi Airport Terminal 5.
