DB:39Q

Stock Analysis Report

Executive Summary

Lian Beng Group Ltd, an investment holding company, engages in the construction business in Singapore and Australia.


Snowflake Analysis

Undervalued average dividend payer.

Share Price & News

How has Lian Beng Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 39Q's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.7%

39Q

12.3%

DE Construction

2.1%

DE Market


1 Year Return

-38.3%

39Q

-50.0%

DE Construction

-16.6%

DE Market

Return vs Industry: 39Q exceeded the German Construction industry which returned -53.7% over the past year.

Return vs Market: 39Q underperformed the German Market which returned -20.9% over the past year.


Shareholder returns

39QIndustryMarket
7 Day-3.7%12.3%2.1%
30 Day-31.3%-18.6%-12.6%
90 Day-38.0%-42.7%-22.9%
1 Year-35.4%-38.3%-47.9%-50.0%-14.2%-16.6%
3 Year-40.6%-47.6%-55.3%-58.6%-14.8%-21.9%
5 Year-31.2%-46.6%-3.4%-14.3%-16.6%-27.8%

Price Volatility Vs. Market

How volatile is Lian Beng Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Lian Beng Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 39Q (€0.21) is trading below our estimate of fair value (€3.06)

Significantly Below Fair Value: 39Q is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 39Q is good value based on its PE Ratio (4.5x) compared to the Construction industry average (9.5x).

PE vs Market: 39Q is good value based on its PE Ratio (4.5x) compared to the German market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 39Q's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 39Q is good value based on its PB Ratio (0.2x) compared to the XE Construction industry average (0.9x).


Next Steps

Future Growth

How is Lian Beng Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.5%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Lian Beng Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Lian Beng Group performed over the past 5 years?

-19.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 39Q has high quality earnings.

Growing Profit Margin: 39Q's current net profit margins (7.1%) are lower than last year (19.3%).


Past Earnings Growth Analysis

Earnings Trend: 39Q's earnings have declined by -19.4% per year over the past 5 years.

Accelerating Growth: 39Q's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 39Q had negative earnings growth (-51.5%) over the past year, making it difficult to compare to the Construction industry average (6.3%).


Return on Equity

High ROE: 39Q's Return on Equity (5.3%) is considered low.


Next Steps

Financial Health

How is Lian Beng Group's financial position?


Financial Position Analysis

Short Term Liabilities: 39Q's short term assets (SGD705.9M) exceed its short term liabilities (SGD483.3M).

Long Term Liabilities: 39Q's short term assets (SGD705.9M) exceed its long term liabilities (SGD372.7M).


Debt to Equity History and Analysis

Debt Level: 39Q's debt to equity ratio (71.7%) is considered high.

Reducing Debt: 39Q's debt to equity ratio has increased from 51% to 71.7% over the past 5 years.

Debt Coverage: 39Q's debt is not well covered by operating cash flow (18.7%).

Interest Coverage: 39Q's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Lian Beng Group's current dividend yield, its reliability and sustainability?

6.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 39Q's dividend (6.52%) is higher than the bottom 25% of dividend payers in the German market (1.69%).

High Dividend: 39Q's dividend (6.52%) is in the top 25% of dividend payers in the German market (4.85%)


Stability and Growth of Payments

Stable Dividend: 39Q's dividend payments have been volatile in the past 10 years.

Growing Dividend: 39Q's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.6%), 39Q's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average board tenure


CEO

Pang Aik Ong (61yo)

no data

Tenure

Mr. Pang Aik Ong, BBM serves as an Executive Chairman of the Board and Managing Director of Lian Beng Group Ltd. Mr. Ong joined Lian Beng Group Ltd in 1978 and is responsible for its management, business d ...


Board Members

NamePositionTenureCompensationOwnership
Pang Aik Ong
Executive Chairman & MDno datano data5.73% SGD6.4m
Lay Koon Ong
Head of Accounting21.08yrsno data1.71% SGD1.9m
Lay Huan Ong
Head of Contracts Department & Executive Director21.08yrsno data3.2% SGD3.6m
Chuan Aun Ko
Independent & Non-Executive Director4.75yrsno data0.041% SGD45.5k
Beng Tin Low
Independent & Non-Executive Director4.75yrsno data0.18% SGD199.8k
Khee Giap Tan
Independent Director0.42yrno datano data
Eng Keong Ong
Executive Director of SLB Development Ltdno datano datano data
Chun Giap Ang
Independent Director3.5yrsno datano data

4.8yrs

Average Tenure

61yo

Average Age

Experienced Board: 39Q's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 39Q insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lian Beng Group Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lian Beng Group Ltd
  • Ticker: 39Q
  • Exchange: DB
  • Founded: 1973
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: S$172.393m
  • Listing Market Cap: S$110.957m
  • Shares outstanding: 499.69m
  • Website: https://www.lianbeng.com.sg

Location

  • Lian Beng Group Ltd
  • Lian Beng Building
  • 29 Harrison Road
  • Singapore
  • 369648
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
L03SGX (Singapore Exchange)YesOrdinary SharesSGSGDApr 1999
39QDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 1999

Biography

Lian Beng Group Ltd, an investment holding company, engages in the construction business in Singapore and Australia. It operates through four segments: Construction, Dormitory, Investment Holding, and Property Development. The Construction segment constructs residential, institutional, industrial, and commercial properties; and undertakes civil engineering projects in private and public sectors. This segment also sells construction materials, such as concrete and asphalt; and provision of engineering services, as well as leases construction machinery. The Dormitory segment is involved in the rental of dormitory units; and provision of dormitory services. The Investment Holding segment holds investments in quoted and unquoted securities and properties. The Property Development segment develops, sells, and rents residential, commercial, and industrial properties, as well as offers property management services. The company is involved in the general building construction, civil engineering, and electrical works; sale, rental, and maintenance of construction machinery and equipment; and shipping operations, including chartering of ships. It also offers management and management consulting services; training for construction workers; and engineering, automation, and technical services. In addition, the company trades in construction materials and steel products; and manufactures and supplies concrete. Lian Beng Group Ltd was founded in 1973 and is based in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 01:16
End of Day Share Price2020/04/06 00:00
Earnings2019/11/30
Annual Earnings2019/05/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.