DBS Vickers starts Tiong Seng Holdings (K2P.SG) at Buy with S$0.36 target price, based on 30% discount to sum-of-parts valuation, according to Dow Jones.

DBS Vickers says Singapore-based civil engineering contractor has strong $1 billion orderbook to provide earnings visibility for next few years, with projects ranging from office, residential developments to public infrastructure jobs.

“They have the ability to handle a wide spectrum of projects and thus (need) not be over-reliant on any single project category for revenues,” says the broker.

DBS Vickers notes while construction sector is labor intensive, Tiong Seng stands out using advanced construction methods which reduce time, manpower needs by up to 50%. Adds company has niche presence in 2nd-, 3rd-tier Chinese cities. Shares +6.3% at $0.255.