I first invested in the company back in Oct 2013 at a price of 0.34, attracted by its relatively large discount to its NAV of 0.48, around 29%. It also had quite good dividend yield of 5.8%. The company is definitely not as largely followed by the construction firms that get the limelight with their large contract wins - the ah beng ah sengs such as Lian Beng, Hock Lian Seng, Tiong Seng, Chip Eng Seng etc. The company is a low profile construction player with a long-established history (take a look at their website for the list of significant civil engineering contract undertaken in the past - City Hall MRT, Bishan MRT Depot, UOB Plaza 1), quietly chugging along, throwing out constant dividend.
I bought with the understanding that is an undervalued company with nice dividend, at least from the numbers perspective. I didnt know when will the price-value gap be closed and when can I realise the value and cash out on the trade.
Recent months, the company's President and Senior Executive, Mr Raymond Lum and David Lum, has been purchasing the company's shares and increasing their direct stakes in the company. Look at the purchase records below:
The market seem to take notice of their purchase, and reacted with increased share price with larger than usual volume: