Expects earnings to remain robust in the next few years, driven by strong demand for building materials here and contributions from its diesel-engine and appliances manufacturing operations in China, CEO Teo Tong Kooi said.

Mr Teo said the company?s building materials order book is "very strong", but declined to disclose the value of the order book. However, he estimates that the company's orders can sustain its earnings in the next 5 years.

The building materials group was the fastest growing division of Hong Leong Asia last year, with its net profit rising to $13.4m from $3.7m. The division accounted for some 22% of group net profit of $61.1m last year.

Hong Leong Asia (S$2.07) - Cheap exposure to construction boom

HLA's Building Materials Group (BMG) is expected to be a big winner of the jump in building material prices and Singapore's construction boom. BMG earnings could beat expectations this year with earnings likely to triple yoy. HLA is firing on all cylinders with Xinfei and Yuchai on track to deliver double-digit earnings growth. We have raised our earnings forecasts by 28-32% for FY07-09 to reflect BMG's earnings strength. Maintain Outperform with new target price of S$2.81 (S$2.54 previously) following our earnings upgrade, still based on sum-of-the-parts valuation. We believe HLA offers value exposure to Singapore's construction boom and China's robust economic growth