Lian Beng reports fiscal 1Q net profit rose 21 percent

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Lian Beng Group reported Monday its fiscal first quarter net profit increased 21.3 percent on-year to S$7.4 million, mainly on a higher contribution from the construction segment.

Revenue for the quarter ended 31 August rose 74.5 percent on-year to S$146.8 million on progressive revenue recognition of ongoing projects, the company said in a filing to SGX.

The group posted a share of profit from associates of S$1.4 million, swinging from a year-ago loss of S$3.1 million, on progress made in the construction of Affinity @ Serangoon and Riverfront Residences; Lian Beng said it holds a 20 percent stake in each of them.

“Lian Beng is cautiously optimistic of the outlook of the construction industry in the year ahead, on the back of healthy demand for construction services from the public sector,” the statement said.

It pointed to a July contract win valued at S$234.7 million by its 60 percent-owned subsidiary, United Tec Construction, for an NTUC Fairprice Co-operative food distribution center; it also noted United Tec landed a contract valued at S$107.5 million to build a residential project on Kampong Java Road.

“The group will leverage its strong track record and expertise to tender actively for public and private sector projects,” Lian Beng said. “At the same time, through its property development subsidiary, SLB Development Ltd., it will continue to monitor the property market closely for opportunities to replenish its land bank, while remaining open to business prospects in the region that will complement its property development business.”

In a separate statement, Lian Beng said its wholly owned subsidiary Lian Beng Resources increased its share capital by capitalizing a S$2.35 million loan it owed the company into 2.35 million shares.

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