(10-04-2015, 01:46 PM)$wise Wrote: How do I derive Lian Beng's PE at 2.7x ?
Where do I obtain the EPS in this arithmetics ?
No offense, just my sincere question.
I must be convinced to collect some more if proven correct.
Tks
collect some more means you already have some?
What I remembered from official annual reports and quarter announcements from Lian Beng are:
2014 FY eps: 16.45 cents based on 529.76 mil of shares at that time
Since then, they have done share buyback of around 18 million shares
Latest half year results till Nov 2014 stated that eps was 6.75 cents
Group NAV at 78 cents
Thank you for your friendly discussion.
You are right. I’m confidently vested.
I was just wondering if anyone may have special access to a more up-to--date EPS when I was still ignorantly left behind.
Your EPS update is in order with mine.
Base on your (previous) Share price of 55 cts EPS of 16.45 cts.
[b]PE should be 3.34 ? [/b]( still very attractive, factoring some credible 30% discount to book value.)
Let’s clarify and rectify this together…
I just came across this and hopefully, this will help answer the query.
The way, Google, Bloomberg and Yahoo report PE in general is using a trailing PE method.
The way it would have been calculated is to take last year's PE of 16.45 cents, add in Q1 2015 EPS of 2.26 cents and subtract Q1 2014 EPS of 1.43 cents, this gives a full year trailing EPS of 17.28 cents. for the period till Q2 2015 results.
So, the trailing EPS would have been 17.28 cents till Jan 10, 2015.
Now, if you look at H1 2015 results, The way it would have been calculated is to take last year's PE of 16.45 cents, add in H1 2015 EPS of 6.75 cents and subtract H1 2014 EPS of 3.24 cents, this gives a full year trailing EPS of 19.96 cents. for the period till Q3 2015 results.
At a share price of 55 cents, this translates to a PE of 2.7
This would be the case till the Q3 2015 results.
Hope this is helpful.
Hopefully, you waited, as the price has fallen further now to 53 cents and seems to have hit 52.5 cents today
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share price breaks through the 50 cents level... although having a lower CR, if compared with another similar peer such as HLS, which now the two share prices are almost the same, but the latter has half its order book, revenue and profit, am pondering whether Lian Beng's price is really justified
UOB Kay Hian initiated this morning with a TP of $0.725.
MONEY TALK LIAN BENG GROUP LTD (LBG SP)
Undervalued Stock With A Rising Recurring Income
We initiate coverage on Lian Beng with a BUY and SOTP target price of S$0.725, representing a 39.4% upside. Lian Beng has nearly S$90m of unrecognised development profits that will be progressively recognised from FY15-18, setting the profit base as its recurring income grows. We forecast Lian Beng&rsquo s core profit to grow at FY14-17 CAGR of 8.3%, driven primarily by highly recurring rental income from investment properties such as the Jalan Papan workers&rsquo dormitory. Excluding development profits, Lian Beng is currently trading at 7.8x core FY15F PE that is set to compress to only 6.1x FY17F PE. Of note, 40% of core profit will be derived from highly recurring rental income by FY17F deeming current valuations too attractive to ignore.
INVESTMENT HIGHLIGHTS
Initiate coverage with a BUY and SOTP target price of S$0.725. With a FY16F dividend yield of 4.7%, a growing recurring income primarily driven by rental from investment properties and nearly S$90m of development profits yet to be recognised, we believe Lian Beng offers good value at current price levels. Lian Beng is currently trading at 35% discount to its net asset value of S$0.806 (where 55% of its assets are in the form of cash, investment securities and properties)
Bulging property development portfolio with locked in sales. Currently, Lian Beng has stakes in 10 property development and investment projects, with nearly S$90m of development profit that will be progressively recognised from FY15-18. With the exception of Floraville and Hexacube, most of the development projects have locked in sales of more than 78%. (Profit from the Floraville and Hexacube projects represents only 7% of the development profit yet to be recognised.) Building its recurring income and strong cash flow. We estimate income from the supply of RMC, leasing of equipment and investment properties may grow from S$13m in FY15 to S$25m in FY17-18, driven primarily by high recurring rental income as various investment properties (eg workers&rsquo dormitory at Jalan Papan) come on stream. Rental income from investment properties is estimated to form 40% of core profit by FY17-18. We have not factored in contribution from the supply of asphalt and as such, this may also provide further upside to our earnings forecasts.
Deep potential value waiting to be unlocked. We note management has tried to spin off its construction-related businesses (leasing of equipment, supply of RMC) in 2011. While the plan was abandoned due to unfavourable market conditions, we believe there is potential value waiting to be unlocked from the construction-related segment and this may be a potential price catalyst. We also do not dismiss the possibility of Lian Beng monetising some of its investment properties if the price is right, such as in the case of its hotel investment at Middle Road.
Consistent dividend payout. Lian Beng paid out 9-18% of its earnings as dividends in the last four financial years. For FY16, we expect Lian Beng to pay a dividend of S$0.024/share, based on a 15% payout ratio, translating into a dividend yield of 4.7%. Share price may also be supported if Lian Beng resumes its share buyback programme. In Oct-Dec 14, Lian Beng repurchased 19.6m shares (about 3.7% of total outstanding shares) at S$0.60-0.68/share.
14-07-2015, 09:46 PM (This post was last modified: 14-07-2015, 09:47 PM by CityFarmer.)
A conflict on executive director performance bonus calculation, leaded to resignation of two IDs. The two IDs advocated for NP after NI, while management insisted on NP before NI, with ground of service agreement. The different is pretty large since NI is more than 30% of overall NP, with reference to AR2014.
IMO, since no hard regulation on the calculation formula, the service agreement should be the ultimate reference.
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