This column is written by @calvinwee
-Calvin is a fundamental analyst at heart and an ardent disciple of value investing. He relishes the process of searching for undervalued stocks and enjoys collecting dividends from his stocks.
1) Underground utilities infrastructure construction and maintenance services,
2) Road and airfield pavement construction and maintenance services,
3) Construction materials supply services
FY16 was a challenging year for Ley Choon as it reported a gross loss of $22.4 million due to provision for liquidated damages and foreseeable losses for additional work to be performed for certain ongoing projects.In the absence of the above factors, the Group would have reported a revenue and gross profit of approximately S$151 million and S$22 million respectively, and a corresponding gross profit margin of 14.6%.
In view of its financial difficulties, Ley Choon have engaged Professional Advisors to restructure its debe obligations and divest its non-core assets to reduce borrowings and strengthen the balance sheet The divestment of non-core assets and businesses is envisaged to reduce overall borrowings by approximately S$30 million. In addition, the Group has also embarked on an optimization program for its operational asset base, where under-utilized assets are identified and disposed to recycle capital.