Lian Beng posts stellar 58% profit growth in 1Q15

Thanks to recent property developments.

Lian Beng started the year on the right foot, with its projects gaining their much needed attention and more.
A report by OSK-DMG reveals that Lian Beng Group’s revenues grew 10.8% to SGD167.6m, while PATMI surged 58.5% to SGD12.0m.

The surge in profits is largely attributable to the recognition of property development project (such as NEWest, KAP Residences, The Midtown and Midtown Residences) profits, which was SGD5.1m under share of results of associates and JVs. 

Here’s more from OSK-DMG:

Going forward, we expect the recognition of profits from property development projects, namely The Midtown and Spottiswoode Suites, to continue to drive earnings, alongside a steady execution of construction projects (the orderbook of which still stands at SGD1.0b providing operational visibility to Lian Beng). 

Other near-term catalysts include potentially sizeable quick profits from sale of strata-titled Prudential Tower units (Lian Beng owns 32% in the consortium that bought 92.8% of aggregate area of Prudential Tower from Keppel REIT), incoming granite supply business and an associate stake of 40% in the asphalt premix supply business.