Application scores and opinions

The Group's main business includes: (I) road construction services (i.e. new road construction, road widening and road-related facilities); and (ii) construction supporting services (such as road laying and marking maintenance and road upgrading and upgrading services). Among them, construction supporting services are the main business, accounting for 75.6% of revenue in 2016 and 24.3% of road construction services. The Group's financial position has improved steadily in the past three years, with revenues of S $42 million, S $47 million and S $51 million respectively, and net profits of S $2.76 million, S $5.6 million and S $7.10 million, respectively. On the customer side, private customers such as various Singapore legal machines and private construction companies are served by the Group. High customer concentration is a common phenomenon in the construction industry, and so is Shuangyun Holdings. In 2016, the group's largest customers accounted for 49.2% of revenue, and the five largest customers accounted for 93.7% of total revenue. The negative effect of high customer concentration is that once the future relationship can not be maintained, the potential volatility of income is greater. During the track record period and up to the latest practicable date, the Group has completed seven road construction service projects and 28 construction ancillary services contracts with a total contract value of approximately S $38.5 million and S $40.6 million respectively. In terms of industry, the Ipsos report points out that the market of civil engineering and road engineering in Singapore is generally scattered. From 2011 to 2016, more than 200 civil engineering / road contractors in Singapore were awarded road projects by both the private and public sectors. In 2016, the Group holds about 1.9% of the market share of Singapore road contractors, which is not far behind the top 2.2% market share and has a clear competitive advantage. According to the IPO price, the group has a price-to-earnings ratio of 9.9 to 13.9 times, while the current price-to-earnings ratio of construction companies listed on the Hong Kong Stock Exchange is between 4 and 30 times. To sum up, it was given a "neutral" rating with a total score of 5.6.