Lian Beng H1 earnings up 48% to S$22m on higher construction revenue

CONSTRUCTION and property development firm Lian Beng Group on Thursday (Jan 12) posted a 48 per cent rise in earnings to S$22 million for the first half ended November.

The increase was largely driven by revenue from its construction segment, which rose 14.1 per cent to S$354 million in H1, from S$310.1 million in the previous year.

The group attributed this to a “general improvement in the level of construction activity” during the period.

Revenue from its property development segment, however, fell 4.1 per cent to S$38.2 million.

This was due to a decline in progressive revenue recognised from Inspace, as the construction of the light industrial development project approached completion.

Total group revenue climbed 11.6 per cent to S$421 million in H1 FY2023, from S$377.3 million in the year-ago period.

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Earnings per share rose to 4.4 Singapore cents, compared to 2.98 cents in the previous year.

“The results reflect Lian Beng Group’s adaptability to the rapidly changing industry conditions. We are glad to have been able to close the half year with a healthy cash level and order book,” said Ong Pang Aik, the group’s chairman and managing director.

Lian Beng Group said its construction order book, which stood at S$1.7 billion as at Jan 12, will provide “a steady flow of activity” through FY2027.

The board has recommended an interim dividend of S$0.01 per share, to be paid on Feb 6.

Shares of Lian Beng Group closed flat at S$0.515 on Thursday, before the announcement.