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LEY Choon Group might be a stock to watch, now that the provider of underground utilities infrastructure construction and road works services has repaired its finances and appears to be on the way to better fortunes.

The Catalist-listed group announced on Jan 15 that four of its subsidiaries have bagged a total of S$131.5 million for the supply and installation of underground utilities services as well as road reinstatement works.

These projects should be completed within 24 to 36 months, Ley Choon added.

While the new contracts are not expected to have any material impact on the group’s earnings per share and net tangible assets per share for the financial year ending March, they should boost its order book. Ley Choon’s outstanding order book stood at S$220.1 million as at November, when the group reported its mid-year financials.

Although Ley Choon posted only a 2.5 per cent year-on-year rise in revenue to S$64.4 million for the period ended September, its earnings were up 35.9 per cent to S$7.3 million, as finance costs shrank by 74.2 per cent.