Upgrading to Mainboard on 12 May 2009 – PSL has recently announced that it had received in-principle approval from the Singapore Exchange Securities Trading Limited for its upgrading to the Mainboard and it will be making the transfer with effect from 12 May 2009.

Clinched foundation engineering contracts amounting to approximately S$29m, most of which will be completed within this year. One of the contracts was clinched by PSL’s joint venture company to provide bored piling works for the construction of the Marina Coastal Expressway (“MCE”) worth approximately S$20m/year for the next 2 years.

Maintain earnings forecast – Given that the contracts clinched to date have met 75% of our segmental revenue forecast for PSL’s FY09F Piling & Engineering segment, we keep our earnings forecast for now.

Maintain BUY recommendation; Target price lifted to S$0.19. We continue to value PSL using P/B valuation metric. However, we raise our parameter to 0.75x FY09F P/B (previously 0.5x FY09F P/B) on improved broad market sentiments, deriving our target price of S$0.19, equivalent to 4.5x FY09F P/E. With upside potential of 35%, we maintain our BUY recommendation on PSL.