Boustead

[winston]

Not vested. From Kim Eng:-

Boustead Singapore – quality and diversity galore

Boustead is easily overlooked by investors who could not appreciate the diversity of its businesses. While other companies were grappling with shrinking profits during the financial crisis, it was quietly delivering.

The company has since emerged unscathed, bigger and stronger to boot! A significant milestone achieved in FY Mar10 was the turnaround of its water business.

We see no reason for its share price to trade at the current depressed level. In fact, there seem to be multiple opportunities for Boustead to surprise us in 2011. Higher‐than‐expected contract wins, valueadding investments with its huge cash hoard or even a special payout to shareholders could be positive catalysts for the share price.

But even without these positive surprises, valuation is still undemanding.

http://www.kimengresearch.com/KimEng/se ... iTJIBjfA0=

[winston]

Not vested

BOUSTEAD SINGAPORE - Boustead Singapore said on Monday its third quarter net profit rose 53 percent to S$13.3 million from a year ago.

Revenue rose 23 percent to S127.7 million, helped by growth in the firm's engineering services and geo-spatial technology segments.


Source: Reuters

[Musicwhiz]

Just for info, there is a Meet the CEO session organized by Kim Eng to be held on Feb 25, 2011 1-2 p.m. It is Fully Booked as far as I know, but if someone from here managed to sign on for it, can they feedback on what FF Wong said, please? Much appreciated!

Vested.

Business Times - 15 Feb 2011

Boustead Q3 net jumps 53% to $13.3 million

By VEN SREENIVASAN

DIVERSIFIED engineering specialist Boustead Singapore boosted its third-quarter net earnings 53 per cent to $13.3 million, thanks largely to strong contribution from its real estate solutions and geo-spatial divisions.

This was achieved on the back of a 23 per cent rise in revenue to $127.7 million for the October-December 2010 quarter.

The Q3 FY11 financial results lifted net profit for the nine months to end-December 84 per cent to $53.3 million, beating the previous year's full-year earnings of $43.1 million, and virtually ensuring that Boustead will surpass its 2009 profit of $60.1 million.

Revenue for the April- December period rose 34 per cent to $450.5 million.

The company's two core segments, Engineering Services and Geo-Spatial Technology, did well during the quarter.

Sales of software and professional services to government agencies in Australia and South-east Asia boosted the Geo-Spatial Technology unit's Q3 revenue 20 per cent to $21.7 million. Analysts believe this division could see increased demand following the massive floods in Australia recently.

The Real Estate Solutions Division recorded a 69 per cent rise in revenue to $71 million, driven largely by the ongoing construction of the 62,000 square metre manufacturing facility for Rolls-Royce's wide- cord engine fan blade and civil aero engine projects at Seletar Aerospace Park.

The Energy-Related Engineering Division achieved flat revenue at $27.7 million, while its Water & Wastewater Engineering Division (that is, Boustead Salcon Water Solutions) saw a 52 per cent fall in revenue to $7.2 million during Q3 as many projects were in their infancy.

Boustead also restructured its joint venture in Libya, reducing its stake to 35 per cent, with its JV partner General Construction & Building Company (Libya's largest government construction company) holding a 65 per cent interest. Boustead is expected to incur a net loss of $1.1 million from the restructuring.

The company had a net cash position of $173.2 million as at end-December 2010.

'Our strong financial performance in the first nine months has allowed us to surpass the revenue and net profit achieved for the whole of FY2010,' said Wong Fong Fui, chairman and group CEO. 'Having successfully restructured the JV in Libya and won recent new contracts worth $55 million, we feel fairly confident of our prospects particularly as we see a very healthy pipeline of enquiries.'

Mr Wong added: 'Although our previously announced negotiations for the acquisition of Bio-Treat and long-term investment in the 'Big Box' project with TT International Ltd have not materialised as planned, we continue to seek other strategic opportunities to deploy our sizeable net cash balance of $173.2 million.'

[Musicwhiz]

Business Times - 17 Mar 2011

Boustead bags contracts worth $72m

Jobs won through unit Boustead Projects

By MINDY TAN

BOUSTEAD Singapore's subsidiary Boustead Projects has won two contracts worth $72 million.

The first was a $55 million contract with SDV Logistics (Singapore) to design, construct, and develop an integrated logistics facility in Singapore.

This is earmarked to be the first local facility in the logistics industry to be awarded Leadership in Energy and Environmental Design Gold. This is an internationally recognised green building certification system developed by the US Green Building Council.

With a gross floor area of approximately 42,110 square metres, the five-storey ramp-up facility will comprise sections for supply chain management and administrative offices. Completion is expected in August 2012.

The facility will be developed by Boustead Projects' wholly owned subsidiary, BP-SDV. Upon completion of the facility, Boustead Projects will transfer its shares in BP-SDV to SDV Logistics.

Its second commission involves a $17 million design-and-build contract for an integrated high-tech production and research and development centre located at Tukang Innovation Park.

Due for completion in Q4 2011, the high-tech facility has a gross floor area of approximately 20,000 square metres across four floors designated for production, R&D laboratories, clean rooms, and administrative offices.

'Our business development efforts have borne fruit since the start of 2011,' saidThomas Chu, managing director of Boustead Projects. He added that with the two contracts, Boustead Projects had secured five industrial real estate contracts since the start of the year.

'We will continue to drive business development efforts in niche growth industries in Singapore and regionally,' he said.

Both contracts are not expected to have a material impact on the profitability, earnings per share, or net asset value per share of Boustead in the current financial year ending March 31, 2011.

In February, Boustead evacuated 31 of its non-Libyan staff from Libya. They were working on the Al Marj Township Project, east of the capital of Libya, Tripoli.

Boustead is currently a 35 per cent shareholder of the township project, having previously held a 65 per cent interest prior to restructuring. Boustead, together with General Construction & Building Company, was awarded the $300 million contract to build the 1,164-villa Al Marj township in 2007.

As a result of the political unrest, Boustead announced last month that it has suspended all operations in Libya. It placed its financial exposure in the North African nation to be between $15.5 million and $39.6 million.

Boustead's share price closed trading up one cent at $0.94 yesterday.

[winston]

Not vested

Infrastructure and engineering services firm Boustead said it booked a net loss of S$1 million in the fourth quarter, compared with a net profit of S$14.2 million in the year ago period, hit by provisions it made for two projects in Libya after the outbreak of civil unrest in the country.


Source: Reuters

[Musicwhiz]

Business Times - 27 May 2011

Boustead's Q4 hit by Libyan provisions

But generous payout proposed as full-year net profit rises 21%

By VEN SREENIVASAN

DESPITE losses on its Libyan projects which sent it into the red for its fourth quarter, mainboard engineering company Boustead Singapore proposed a generous final payout of five cents per share after posting strong full-year earnings.

After provisions for its two Libyan projects following recent turmoil in that country, which resulted in 'other operating expenses' rising $19 million to hit $22.1 million, Boustead posted a loss of $1 million for the January-March 2011 final quarter. But revenue for the quarter was up 8 per cent to $110.1 million.

For the year ended March 31, the company lifted its revenue 28 per cent to a record $560.6 million, while net profit rose 21 per cent to $52.2 million - its second highest ever.

The cash-rich company declared a total dividend of five cents a share, comprising a final dividend of two cents per share and a special dividend of three cents per share. It paid out two cents a share in mid-year.

At the operating level, Boustead's gross profit surged 34 per cent to $178.1 million, widening its gross profit margin to 32 per cent from 30 per cent a year earlier.

Part of this came from the $67.8 million sale of IBM Singapore Technology Park.

Cash and bank balances decreased slightly to $209.8 million, but Boustead's net cash position was $184.6 million as at the end of FY2011, or a net cash per share position of 36.5 cents.

New businesses in all its core divisions did well during the last five months, with 20 contracts worth $158 million secured since January. Boustead's current order book stands at $230 million, and growing.

In terms of its four main business units, its energy- related engineering revenue rose 15 per cent to $140.9 million, thanks to the strong performance of downstream oil & gas business.

Water & wastewater engineering revenue declined 48 per cent to $28.7 million due to slower recognition from major projects compared to the previous financial year.

Real estate solutions revenue rose 61 per cent to $295.7 million. This included the $67.8 million sale of IBM Singapore Technology Park and substantial completion of two major projects for Rolls-Royce at Seletar Aerospace Park.

Geo-spatial technology revenue rose 27 per cent to $94.7 million (a new division revenue record), and included the maiden full- year contribution of acquired subsidiary MapData Services. The unit also benefited from strong sales of software and services to government agencies across exclusive markets in Australia and South-east Asia.

(Vested)

[winston]

Not vested

Engineering firm Boustead Singapore said its energy and engineering division has secured about S$23 million worth of contracts from the oil and gas and petrochemical industries.

It will design and build large-scale process systems for oil refineries and processing plants in Australia, Singapore and Turkmenistan.

Source: Reuters

[Musicwhiz]

Dear all, Part 1 of my Boustead FY 2011 Analysis is now up on my blog. Please feel free to visit and leave comments, thanks!

A snippet as follows:-

"Boustead was expected to go through a rough patch for 4Q 2011, as it was evident from their announcements and press releases that Libya was going through a civil war and that all foreigners had to be evacuated from the country. While the impairment and provisions took up about $17.6 million in total, note that this was merely an accounting entry and had no impact on cash flows. The cash flow statement analysis section will demonstrate that cash flows continued to be very strong for the Group."

[Musicwhiz]

Dear all, Part 2 of my Boustead FY 2011 Analysis is now up on my blog. Please feel free to visit and leave comments, thanks!

A snippet as follows:-

"One would notice that Real-Estate Solutions Division now takes the lion’s share of revenue, as a proportion of Engineering Services Division. It made up 63.6% of revenues as compared to just 50.9% a year ago, and I am confident that this is the reason Boustead decided to buy out the minority interest in Boustead Projects (of 8.3%) during FY 2011 and make Boustead Projects a wholly-owned subsidiary. As a proportion of total revenues of $560.6 million, Real Estate takes up 52.7% of total Group Revenue, up from just 41.9% a year ago. This attests to Boustead’s strategy of focusing this division on a niche market in which it can compete very effectively and “lock-in” good margins. Boustead Projects is also building up its portfolio of Design, Build and Lease (DBL) projects which provide recurring income and cash flows, apart from just bolstering their Design and Build order book."

[Musicwhiz]

Dear all, Part 3 of my Boustead FY 2011 Analysis is now up on my blog. It also features a transcipt of the audiocase. Please feel free to visit and leave comments, thanks!

A snippet as follows:-

"The Real-Estate Solutions Division appears to be headed in the right direction, with FF Wong alluding to more deals in the next few months and a build-up in Boustead’s recurrent income flow through more DB&L projects. The fact that Boustead Projects can cater to niche markets bodes well for the now 100%-owned subsidiary, as this means more projects of significant size and clout would raise its profile and create a positive feedback loop. It remains to be seen if the division can manage to scale new heights in terms of revenue and profit contribution, as a large portion of its contracts are “lumpy” as well; but with FF Wong’s assurance that he is building up the DB&L orderbook flow, this may mean that revenues and cash flows at Boustead Projects would become more stable, consistent and predictable. One positive side effect is that dividends may also increase as a result."