Boustead Singapore

(01-05-2024, 11:16 AM)¯|_(ツ)_/¯ Wrote: BSL@0.96

BP Interim Dividend 3 cents

Nice present received on Labour Day.

Gratitude.

(01-05-2024, 12:25 PM)¯|_(ツ)_/¯ Wrote: Written on the cheque:
Div #9 for Boustead Projects Limited
Type: Interim
Gross: 3 cents 
For: Year ended 31 Mar 2024
Date of payment: 29 Apr 2024

Gratitude 

Why interim? Should be final dvd?

(01-05-2024, 11:51 AM)Curiousparty Wrote: BP still giving out dvd? where is this info?  it was not announced in SGX ....

The company had been delisted from SGX. Therefore, there is no need to make any more announcement on SGXNet.

(01-05-2024, 04:15 PM)ghchua Wrote:

(01-05-2024, 11:51 AM)Curiousparty Wrote: BP still giving out dvd? where is this info?  it was not announced in SGX ....

The company had been delisted from SGX. Therefore, there is no need to make any more announcement on SGXNet.

Boustead Proj Dividend Yield (AVM) (dividends.sg)

actually 3 cent dvd from BP was the highest to date....

it should be "final" and not "interim" dvd right?

(01-05-2024, 05:02 PM)Curiousparty Wrote: it should be "final" and not "interim" dvd right?

Hi Curiousparty,

There are some companies which declared "final" dividend as interim dividend, so that the dividend payout does not require shareholder approval at the AGM. So in this case, you may consider it as a final dividend.

As usual, Parent probably needs to replenish its cash at holding level after spending money to increase stake in the child. So a higher dividend isn't out of the ordinary but high probable, especially so as majority of cash is at the child's level.

It seems like the Companies Act has different deadlines for listed and unlisted entities in terms of AGM deadline. Parent (BSL) is still listed and has tighter rules to hold AGM within 4 months after FY closing. As for non-listed entities, it is 6 months and under certain circumstances, may be even waived:

Section 175 of the Act requires the company to hold an Annual General Meeting (AGM). Listed companies are to hold the AGM within 4 months after Financial Year End (FYE), while any other company is to hold their AGM within 6 months after FYE. Private companies may not need to hold an AGM if they meet the criteria specified in section 175A of the Act (elaborated below).

https://www.acra.gov.sg/how-to-guides/of...g-breaches

So the interim dividend declaration probably sets the stage for BSL, the listed entity, to pay its final dividend "on time". Now BP (privately held) minorities may also have a "preview" on how much dividend the parent may eventually declare in 1-2 months time!

3 cents at same share count are about $9 to $10M. Quite a small amount as compared to cash on BP B/S before delisted.

If I am from Boustead, I would have no wishes to prolong any AGM just to see few shareholders who would has almost nothing to input for running the company. Interim dividend will do the job just fine.

For Boustead Singapore, BP while is ok, it is not the real cash cows. Real cash crows are the energy engineering and Geospatial. Both generate higher return without the same capital requirement. Energy engineering is doing way better than BP currently when the industry it is in is still down by a lot.

I see it as BP needs more capital and has a ROE that is lower than Energy engineering and Geospatial. In the recent pasts, Boustead Singapore basically use cash generated from Energy Engineering, Geospatial and BP to pay dividend and privatised BP and still has a cash pile. Contribution from BP was important but not alot since close to $10M is considered as the max given out.

BSL@0.94

Thanks everyone for the input.  Nice to see so many valuebuddies keen in BSL.

I'm still waiting for the star to be aligned before vesting.

Gratitude 

(02-05-2024, 08:04 PM)¯|_(ツ)_/¯ Wrote: BSL@0.94

Thanks everyone for the input.  Nice to see so many valuebuddies keen in BSL.

I'm still waiting for the star to be aligned before vesting.

Gratitude 

May I ask what the criteria area for stars alignment?
usually, when all the stars are fully and beautifully aligned, the share price will not be cheap any more..hahaha..

https://links.sgx.com/FileOpen/Boustead%...eID=804719
https://links.sgx.com/FileOpen/Boustead%...eID=804720

Nice set of results, post merger with BP.

Quote:Valuation wise, isn't it quite easy to decide selling off BP and buy BSL now? Why the struggle of keeping an unlisted BP while BSL is there to grab with darn low valuation? Is it a sentiment in play?

👆For my own note for assessing the opportunity cost when I accepted the tender offer of BP @ S$1.18 on 8-Dec-2023 and bought BSL @ S$0.83.

From the result announcement:
* BP is now 99.5% owned subsidiary, 0.5% still holding onto it. 
* PBT was 31% higher year-on-year at S$100.4 million, the highest level of core PBT (excluding FY2021 which benefitted from the one-off value-unlocking gain from the successful launch of Boustead Industrial Fund).
* Geospatial just keep on getting high:
Achieving a new division record for revenue and profitability even in the face of significant currency exchange headwinds.
* The net liquid position (i.e. cash, net trade and other receivables, net contract assets/liabilities less borrowings) was S$231.3 million at the end of FY2024, translating to a net liquid position per share of 48.4 cents.
Haha so now no longer stating in Net Cash +Investment?? 
* Despite the above "net liquid position" (earning higher interest now, no longer as idled), ROE at commendable 12.6% !! 
* BP order backlog at 33% of its division 2024 revenue (decades low?), EE unit at 74% (not bad) and Geospatial's deferred services backlog at 61% (a record high S$129 million).

And here comes the scrip dividend again!