BBR Holdings

(19-12-2012, 08:01 PM)ngcheeki Wrote: Order book increased by another S$182.9m for building 1,282 units of HDB flats. Current order book increased to S$953 millions.

http://info.sgx.com/webcoranncatth.nsf/V...90038763C/$file/BBR_KallangWhampoa_and_Sengkang.pdf?openelement

Update on property development project Bliss@Kovan on October.

November 2012

BLISS@KOVAN
Total Number of Units 140
Number of units sold 127
Percentage of sale 90.71%

1 Unit sold this month with median price of $971

hi there, may i ask how you get these figures, as in you track them manually and compile them or like through some real estate agent friend?

(19-12-2012, 11:38 PM)safetyfirst Wrote:

(19-12-2012, 08:01 PM)ngcheeki Wrote: Order book increased by another S$182.9m for building 1,282 units of HDB flats. Current order book increased to S$953 millions.

http://info.sgx.com/webcoranncatth.nsf/V...90038763C/$file/BBR_KallangWhampoa_and_Sengkang.pdf?openelement

Update on property development project Bliss@Kovan on October.

November 2012

BLISS@KOVAN
Total Number of Units 140
Number of units sold 127
Percentage of sale 90.71%

1 Unit sold this month with median price of $971

hi there, may i ask how you get these figures, as in you track them manually and compile them or like through some real estate agent friend?

The above information is publicly available on URA website. On the 15th of every month, URA will release the "Prices of units sold in private residential properties in the previous month"

http://www.ura.gov.sg/realEstateWeb/real...roller.jpf

I track them manually based on what are property development projects announced by the company either via their Annual Report or SGX announcements.

thank you, learning very keenly

BBR posted their FY 2012 results yesterday evening. Personally speaking, on balance I’m pleased with the announced results and the outlook.

http://info.sgx.com/webcoranncatth.nsf/V...A003AA7A9/$file/BBR_FY2012_profit_announcement.pdf?openelement

Four Positives:
+ve: Total dividend growth of 50%. A FY 2012 dividend of S$ 0.012 has been proposed – including a S$ 0.004 special component (vs. S$ 0.008 total dividend in FY 2011). Including the special, dividend yield now stands at a more respectable ~ 4.6%, based on Friday's closing price.
+ve: Margin moving in the right direction. Due to project mix, BBR’s gross profit margin increased from ~ 10.1% in FY 2011 to ~ 12.9% in FY 2012.
+ve: Debt levels (approximately) halved, removing one of my key concerns. BBR talk to a much improved liquidity position.
+ve: Very healthy order book, now standing at ~ S$ 960 Mln, with projects over the coming three years.

Four Not-so-positive’s:
-ve: Although fully expected, FY 2012 revenues and net profit levels were down ~ 33.7% and ~ 35% respectively as compared to FY 2011. Mainly due to Sales at Lush on Holland Hill (and some other smaller projects) being finalised in FY 2011. BBR’s revenue realisation remains “lumpy” (I see this as normal for a construction company such as BBR).
-ve: I strongly suspect that when other construction companies announce their results, we'll see that BBR’s dividend yield trails that of some of its key competitors. Note that BBR did not increase its “base” dividend level.
-ve: CEO Andrew talks soberly to the impact of the Singapore Government’s introduction of further measures to cool property prices. My sense, from reading the Press Release that BBR issued concurrently with its FY 2012 results, is that going forward BBR are targeting a reduction in the proportion of private residential development projects and a higher proportion of Government/Public Sector related work (probably wise?).
-ve: Also as regards outlook, BBR say that QUOTE …… the construction industry is expected to be challenging in the next 12 months with increasing competition and expected increases in labour and material costs. Construction gross margins are expected to be lean and shortage of skilled and unskilled workers may affect the future progress of projects UNQUOTE.

NAV/share increased > 10% to over S$ 0.31. At the last done price of S$ 0.26, BBR’s share price now trades on a P/E of ~ 6.2 and currently stands at a ~ 18% discount to NAV. On balance, me thinks this one has more upside than downside. I'll be hanging on to my holding.

Vested

Honestly, there are words passing around the industry that the building materials supplier (for e.g. precast) are unable to cope with the current residential construction boom in Singapore. Thus, this will result in increase in material prices as many upcoming projects are constrained by their respective deadlines. And unfortunately, there is almost nothing that can be done to address this. Maybe importing from Malaysia may help a little but there are heightened restrictions on the expressway coming to Singapore.. Even though precast is considered low barrier to entry, entrepreneurs will still need to take some time to set up, get qualified etc. So low margins may continue to persist for construction sector

Thank you for this Mr Engineer,

If I was allowed to pick only one positive from BBR's FY 2012 results announcement, it would the margin enhancement that they have achieved during the last year. While BBR have had a healthy order book for a long time now, to my mind the key challenge going forward will be eeking out a decent margin - so the second "positive" I mention in my posting of earlier this morning, is really the key one.

I very much share your concern regarding upward cost pressures on construction materials ............. and their impact on margins. But my personal opion is that CEO Andrew and his management team are sufficiently disciplined and focused on this reality - i.e. they'll manage it better than most.

Vested

(23-02-2013, 09:39 AM)mrEngineer Wrote: Honestly, there are words passing around the industry that the building materials supplier (for e.g. precast) are unable to cope with the current residential construction boom in Singapore. Thus, this will result in increase in material prices as many upcoming projects are constrained by their respective deadlines. And unfortunately, there is almost nothing that can be done to address this. Maybe importing from Malaysia may help a little but there are heightened restrictions on the expressway coming to Singapore.. Even though precast is considered low barrier to entry, entrepreneurs will still need to take some time to set up, get qualified etc. So low margins may continue to persist for construction sector

Pleasing to see that Mr. Market seemed to like BBR's FY 2012 results - this is judging from his reaction during today's SGX trading session. BBR's shares were up ~ 7.7% or S$ 2 cents to S$ 0.28, a 52-week high. And this was in a flat overral low-volume market.

At today's closing price, BBR shares still trade ~ 12% below NAV. It will be interesting to see if Mr. Markets continues to appreciate BBR's project delivery and margin maintenance/enhancement.

Vested. Pleased.

(23-02-2013, 09:04 AM)RBM Wrote: BBR posted their FY 2012 results yesterday evening. Personally speaking, on balance I’m pleased with the announced results and the outlook.

http://info.sgx.com/webcoranncatth.nsf/V...A003AA7A9/$file/BBR_FY2012_profit_announcement.pdf?openelement

Four Positives:
+ve: Total dividend growth of 50%. A FY 2012 dividend of S$ 0.012 has been proposed – including a S$ 0.004 special component (vs. S$ 0.008 total dividend in FY 2011). Including the special, dividend yield now stands at a more respectable ~ 4.6%, based on Friday's closing price.
+ve: Margin moving in the right direction. Due to project mix, BBR’s gross profit margin increased from ~ 10.1% in FY 2011 to ~ 12.9% in FY 2012.
+ve: Debt levels (approximately) halved, removing one of my key concerns. BBR talk to a much improved liquidity position.
+ve: Very healthy order book, now standing at ~ S$ 960 Mln, with projects over the coming three years.

Four Not-so-positive’s:
-ve: Although fully expected, FY 2012 revenues and net profit levels were down ~ 33.7% and ~ 35% respectively as compared to FY 2011. Mainly due to Sales at Lush on Holland Hill (and some other smaller projects) being finalised in FY 2011. BBR’s revenue realisation remains “lumpy” (I see this as normal for a construction company such as BBR).
-ve: I strongly suspect that when other construction companies announce their results, we'll see that BBR’s dividend yield trails that of some of its key competitors. Note that BBR did not increase its “base” dividend level.
-ve: CEO Andrew talks soberly to the impact of the Singapore Government’s introduction of further measures to cool property prices. My sense, from reading the Press Release that BBR issued concurrently with its FY 2012 results, is that going forward BBR are targeting a reduction in the proportion of private residential development projects and a higher proportion of Government/Public Sector related work (probably wise?).
-ve: Also as regards outlook, BBR say that QUOTE …… the construction industry is expected to be challenging in the next 12 months with increasing competition and expected increases in labour and material costs. Construction gross margins are expected to be lean and shortage of skilled and unskilled workers may affect the future progress of projects UNQUOTE.

NAV/share increased > 10% to over S$ 0.31. At the last done price of S$ 0.26, BBR’s share price now trades on a P/E of ~ 6.2 and currently stands at a ~ 18% discount to NAV. On balance, me thinks this one has more upside than downside. I'll be hanging on to my holding.

Vested

(23-02-2013, 09:04 AM)RBM Wrote: +ve: Margin moving in the right direction. Due to project mix, BBR’s gross profit margin increased from ~ 10.1% in FY 2011 to ~ 12.9% in FY 2012.

Vested

Based on the Business segment, only 'Specialized Engineering' saw an improvement in External Revenue, whereas both 'General Construction' and 'Property Development' saw a drop in External Revenue.

Good to say improvement in GPM comes from 'Specialized Engineering' ?

Rather than read my stuff on BBR's FY 2012 results, forummers will probably find Lynette Tan's (OSK-DMG Analyst) recent piece more insightful ............ note the target price (she is consistent).............

QUOTE

BBR Holdings: Outlook remains competitive (BUY, S$0.26, TP: S$0.35)
Lynette Tan

BBR achieved PATMI of SGD 4.2 Mln (+45.7% YoY) in 4Q12, even as revenue declined 19.4% to SGD 74.8 Mln. This was largely due to better gross margins as a result of better project mix. Demand for construction projects (particularly from the public sector) is expected to remain healthy, backed by the government’s plans to enhance Singapore’s infrastructure. We think BBR is in a good position to secure more projects, given its capabilities. However, rising labour and material costs as well as competition, could compress margins. BBR is currently trading at 4.2x FY13F earnings. Maintain BUY with a TP of SGD0.35, based on 5.6x FY13F P/E.

Declares special dividend. BBR declared a dividend of SGD 0.8¢ / share. Including the special dividend of SGD 0.4¢ / share, total dividend for FY12 is SGD 1.2¢ / share. This translates into a yield of 4.4%.

Potential government projects could keep BBR busy. As the government looks to grow Singapore’s population, there are plans for more public housing, schools and other infrastructure spending. BBR has been involved in a number of public projects before and we think it would be able to secure some of the projects in the pipeline. Its current order book stands at SGD 960 Mln (vs SGD 770 Mln a quarter
ago), which is expected to last till 2015. However, the construction sector in Singapore is facing stiff competition, especially from overseas construction companies which are usually part of a bigger consortium. Coupled with the expected rise in labour costs, margins are expected to continue to face downward pressure.

Revenue growth helped by projects in active stage of construction. As some of its projects enter the active phase of construction, the increased billings would help boost revenue in FY13 and FY14. Construction at its Bliss @Kovan property development commenced at 2H12 and is likely to contribute more to revenue in FY13 and FY14.

UNQUOTE

Vested

BBR Holdings (S) Ltd (the "Company") wishes to announce that it has been awarded new contracts worth S$61.6 million between November 2012 and January 2013. These include a contract for the construction of the prestigious Dulwich College in Singapore and a number of structural work and specialist engineering contracts in Singapore and Malaysia.

There is no material impact on the earnings per share or net tangible assets per share of the Company for the current financial year ending 31 December 2013.