Boustead Projects

Value buddies must work harder rather than rely on simple journalism.

The introductory documents have a wealth of info.

The RNAV quoted @ 1.26 is based on introductory documents. No speculation and further guessing requires here.

Given that revaluation is done recently, there is little upside.

New DBL and D&B are won in the midst of highly competitive environment. As in any organisation, overheads are always there and must be covered even in tough times. As a separate listed entity, BP is also expected to incur additional listing fees, compliance costs and board fees given that it is no longer unlisted under Boustead Sing.

At current price of $0.91, the discount to RNAV at 27.8% appears fair and until dividend policy emerges, one should have ample time to evaluate BP's business model.

I have to remind that BP is not a new business merely because its a new listing. BP has always been sitting within Boustead Sing. If you are hardworking enough, Boustead Sing historicals will provide invaluable insight on how its market has toughened over the last 2 years.

Given that Boustead Sing has trimmed total DPS to $0.04 (excluding the 15.5 script BP distributions) and maintains an average 50% payout historically, it is a good hint that the parent is expecting a relatively flat BP contributions after factoring in the 48.8% dilution to minority interests via introduction.

CP with your undeclared substantial interests, I urged you to conduct a prudent due diligence rather than guessing and shooting from your hip when posting your analysis.

Vested Since 2002
Including share certs in Boustead Sing & BP
GG

No safety of margin?? If so, pls sell off or give it a pass.
Critic also said Stratech does not worth much. But it has risen from less than 2 cents to close to 5 cents (in one month)

Value is in eye of beholder. We assess the business and not the numbers. Numbers are historical. They help only in some aspects of the assessment...
it is the value judgment. I am sure the Arabs are not dumb people to have chosen to partner BP, out of so many players in Spore, even though they have billions of dollars to throw around..

"ADIA has never published how much it has in assets but estimates have been between $800 billion to approximately $875 billion USD. The Sovereign Wealth Fund Institute puts the figure at US$773 billion."
http://en.wikipedia.org/wiki/Abu_Dhabi_I..._Authority

Sold between 1.035 to 1.125

Monitoring the transformation.

As I said its not about $. Everyone has $, its where to find the assets with acceptable returns that matters.

BP has a huge cash hoard and a S$500m facilities, tried to explore a tie up with Crecendas even before the tie up with SWF.

They have been working quietly for years and even then is facing unprecedented headwinds.

If u notice, stock market is tiering recently with mainliners not doing much but selected small and microcaps enjoying some focus - value or speculation, I have seen it many times over - its a matter of individual preference.

Business and strategies execution doesn't fall in line with your imaginations - just like what you have experience with New Toyo.

The discount to RNAV for BP reflects a level of risks and uncertainties and I think its a fair one. Hence I m monitoring Boustead Sing and BP for the transformation.

(29-05-2015, 08:17 AM)Curiousparty Wrote: No safety of margin?? If so, pls sell off or give it a pass.
Critic also said Stratech does not worth much. But it has risen from less than 2 cents to close to 5 cents.

Value is in eye of beholder.
it is the value judgment. I am sure the Arabs are not dumb people to have chosen to partner BP, out of so many players in Spore, even though they have billions of dollars to spend...

One key distinguishing factor of BP is that they secure demand first and then build later. This significantly lowers their entire risk structure.

This is very DIFFERENT from normal developers who need to bid/compete/tender for land, and then build first and then find buyers for their land. If no buyers, developers will sink and be stuck with unsold units. Hence, BP does not have to contend with "unsold units". It is an unused language in BP.

And the lease period for BP is 12 years, which is much longer than those in the REITS (ave 6 to 7 yrs) which have significant renewal risks.

Wait for this year recurring income to be in and investors can then see for themselves whether this counter is worth their money. Hopefully, it will not be too late by then (e.g. Stratech at current price is not worth the risk anymore...)

The RNAV$1.26 did not include 15th and 16th project since these 2 projects were not listed on page 2.

And of course, the recent contract wins were not included as well.

(28-05-2015, 10:37 PM)greengiraffe Wrote: Value buddies must work harder rather than rely on simple journalism.

The introductory documents have a wealth of info.

The RNAV quoted @ 1.26 is based on introductory documents. No speculation and further guessing requires here.

Given that revaluation is done recently, there is little upside.

New DBL and D&B are won in the midst of highly competitive environment. As in any organisation, overheads are always there and must be covered even in tough times. As a separate listed entity, BP is also expected to incur additional listing fees, compliance costs and board fees given that it is no longer unlisted under Boustead Sing.

At current price of $0.91, the discount to RNAV at 27.8% appears fair and until dividend policy emerges, one should have ample time to evaluate BP's business model.

I have to remind that BP is not a new business merely because its a new listing. BP has always been sitting within Boustead Sing. If you are hardworking enough, Boustead Sing historicals will provide invaluable insight on how its market has toughened over the last 2 years.

Given that Boustead Sing has trimmed total DPS to $0.04 (excluding the 15.5 script BP distributions) and maintains an average 50% payout historically, it is a good hint that the parent is expecting a relatively flat BP contributions after factoring in the 48.8% dilution to minority interests via introduction.

CP with your undeclared substantial interests, I urged you to conduct a prudent due diligence rather than guessing and shooting from your hip when posting your analysis.

Vested Since 2002
Including share certs in Boustead Sing & BP
GG

[Edited by Moderator] new projects are being bid under new competitive environment - how can one expect immediate revaluation gains especially when new land and construction costs are much higher than historical projects?

They have already indicated that returns on new projects are lower than previous ones... anyway, market is efficient, BP share price continue to rot though the rate of decay is moderating...

(29-05-2015, 06:23 PM)Curiousparty Wrote: The RNAV$1.26 did not include 15th and 16th project since these 2 projects were not listed on page 2.

And of course, the recent contract wins were not included as well.

(28-05-2015, 10:37 PM)greengiraffe Wrote: Value buddies must work harder rather than rely on simple journalism.

The introductory documents have a wealth of info.

The RNAV quoted @ 1.26 is based on introductory documents. No speculation and further guessing requires here.

Given that revaluation is done recently, there is little upside.

New DBL and D&B are won in the midst of highly competitive environment. As in any organisation, overheads are always there and must be covered even in tough times. As a separate listed entity, BP is also expected to incur additional listing fees, compliance costs and board fees given that it is no longer unlisted under Boustead Sing.

At current price of $0.91, the discount to RNAV at 27.8% appears fair and until dividend policy emerges, one should have ample time to evaluate BP's business model.

I have to remind that BP is not a new business merely because its a new listing. BP has always been sitting within Boustead Sing. If you are hardworking enough, Boustead Sing historicals will provide invaluable insight on how its market has toughened over the last 2 years.

Given that Boustead Sing has trimmed total DPS to $0.04 (excluding the 15.5 script BP distributions) and maintains an average 50% payout historically, it is a good hint that the parent is expecting a relatively flat BP contributions after factoring in the 48.8% dilution to minority interests via introduction.

CP with your undeclared substantial interests, I urged you to conduct a prudent due diligence rather than guessing and shooting from your hip when posting your analysis.

Vested Since 2002
Including share certs in Boustead Sing & BP
GG

Boustead Project is in a very niche area of industrial properties with high barrier of entry.

Investment merits are:-
1. lower capital cost.
2. faster turnaround (6-18mths)
3. No need to compete for land tender. Work in conjunction with EDB.
4. Less competition as buildings are specialized. Hence, not every company has the capability to build.
5. More stable stream of work as buildings are mostly for MNCs setting up in Singapore.
6. Not subject to property cycles and not directly hit by cooling measures.
7. Leases under DBL (Design-Build-Lease) are 12 years long - constant/stable stream of recurring income. (REITS leases are usually much shorter)
8. Increasing recurrent EPS.
9. Proven Track Record. This is why ADIC (Abu Dhabi Investment Council)* has chosen Boustead Project.
10. Secure demand first and then build later. No risk of inventory build up like developers (e.g. Wing Tai, CES, etc)

*Abu Dhabi Investment Authority (ADIA) is the world’s richest sovereign wealth fund, according to a global organisation designed to study sovereign wealth funds. The Sovereign Wealth Fund (SWF) Institute listed ADIA’s assets at a staggering $627 billion. The Abu Dhabi Investment Authority was established in 1976 which replaced Financial Investments Board, part of the then Abu Dhabi Ministry of Finance. The Fund is wholly owned and subject to supervision by the Government of Abu Dhabi.
http://www.arabiangazette.com/abu-dhabi-...-globally/

Does BP have to bid for land? This is the 1st time I am hearing it...
Can u list down the industrial land tender exercises that BP has participated in?

If new land is more expensive, then BP portfolio should be revalued upwards even more later on...

(29-05-2015, 06:55 PM)greengiraffe Wrote: U are living in your own CP world... new projects are being bid under new competitive environment - how can one expect immediate revaluation gains especially when new land and construction costs are much higher than historical projects?

They have already indicated that returns on new projects are lower than previous ones... anyway, market is efficient, BP share price continue to rot though the rate of decay is moderating...

(29-05-2015, 06:23 PM)Curiousparty Wrote: The RNAV$1.26 did not include 15th and 16th project since these 2 projects were not listed on page 2.

And of course, the recent contract wins were not included as well.

(28-05-2015, 10:37 PM)greengiraffe Wrote: Value buddies must work harder rather than rely on simple journalism.

The introductory documents have a wealth of info.

The RNAV quoted @ 1.26 is based on introductory documents. No speculation and further guessing requires here.

Given that revaluation is done recently, there is little upside.

New DBL and D&B are won in the midst of highly competitive environment. As in any organisation, overheads are always there and must be covered even in tough times. As a separate listed entity, BP is also expected to incur additional listing fees, compliance costs and board fees given that it is no longer unlisted under Boustead Sing.

At current price of $0.91, the discount to RNAV at 27.8% appears fair and until dividend policy emerges, one should have ample time to evaluate BP's business model.

I have to remind that BP is not a new business merely because its a new listing. BP has always been sitting within Boustead Sing. If you are hardworking enough, Boustead Sing historicals will provide invaluable insight on how its market has toughened over the last 2 years.

Given that Boustead Sing has trimmed total DPS to $0.04 (excluding the 15.5 script BP distributions) and maintains an average 50% payout historically, it is a good hint that the parent is expecting a relatively flat BP contributions after factoring in the 48.8% dilution to minority interests via introduction.

CP with your undeclared substantial interests, I urged you to conduct a prudent due diligence rather than guessing and shooting from your hip when posting your analysis.

Vested Since 2002
Including share certs in Boustead Sing & BP
GG

http://infopub.sgx.com/Apps?A=COW_CorpAn...3ee54d6197

Parent has bought back 500 lots of its own shares from market.
Kid might follow suit soon?

(29-05-2015, 02:29 PM)Curiousparty Wrote: One key distinguishing factor of BP is that they secure demand first and then build later. This significantly lowers their entire risk structure.

This is very DIFFERENT from normal developers who need to bid/compete/tender for land, and then build first and then find buyers for their land. If no buyers, developers will sink and be stuck with unsold units. Hence, BP does not have to contend with "unsold units". It is an unused language in BP.

And the lease period for BP is 12 years, which is much longer than those in the REITS (ave 6 to 7 yrs) which have significant renewal risks.

Wait for this year recurring income to be in and investors can then see for themselves whether this counter is worth their money. Hopefully, it will not be too late by then (e.g. Stratech at current price is not worth the risk anymore...)

Let's review some of the major development projects the industrial REITs are undertaking:

Mapletree Industrial Trust

1) Developing 7 storey data center for Equinix @ $108 million on 20 years lease.

2) Developing Hewlett-Packard buildings @ $226 million for 10.5 + 5 + 5 years lease.

Cache REIT

3) Developing DSC ARC for DHL @ $123 million for 10 years lease + options to renew.

Some of the development projects (especially those by AIMS REIT) had shorter lease periods of 4 - 6 years. These 3 development projects are fairly high tech buildings on long lease with over $100 million value. Such projects are what most would deem to be ideal for BP yet it went to the REITs. Moreover, coupled with their tax-free income status and readily available landbank, it makes REITs a strong competitor in the DB&L segment IMO. I won't really say it is a high barrier to entry industry - the rental income is very sticky but getting the projects is the competitive part. Just my views. Will continue monitoring BP.

(Not Vested in any of these Companies)