Hock Lian Seng announced their full year results on the 23rd of February, which you may find here. Given that this is their first earnings call since my purchase in December (initiation report here), I would like to share a little more on why I feel Hock Lian Seng is still undervalued despite a 55% capital gain in little less than 3 months. Uninspiring Results

Source: Hock Lian Seng's FY2016 Financial Statement

Frankly, when viewed in silo, Hock Lian Seng's FY2016 results are far from impressive. Revenue fell 32.4% while net profit fell 2.1%. However, I do believe the full picture is far rosier. Bottoming Out

Source: Hock Lian Seng's Annual Reports / Financial Statements

As shown in the chart, Hock Lian Seng's profits are "lumpy". Years when profits from development projects are being recognized tend to show abnormally high profits, as was the case in 2014......