BBR Holdings

[dydx]

Today (18Jul11), BBR bought back another 100 lots at $0.275/share.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument

[dydx]

Q2/1H results just out.....
http://info.sgx.com/webcoranncatth.nsf/V...20037AA6B/$file/BBR_2Q11FinancialStatements.pdf?openelement [Result announcement]
http://info.sgx.com/webcoranncatth.nsf/V...20037AA6B/$file/BBR_2Q11PressRelease.pdf?openelement [Press release]

Having already recorded an EPS of $0.0459 in 1H, and assuming (1) comparable earnings from construction, and (2) higher profit contribution from the substantially sold "Lush on Holland Hill" condo project which is reaching more advanced construction milestones, in the 2H, BBR is poised to post a record EPS in FY11. Any sale of the remaining completed units of the "8 Nassim Hill" super-luxe condo project held under 48%-owned associate Tennessee P/L will bring in additional profits, which will lift EPS further. Is an EPS (forecast) of $0.09 for FY11 (vs. $0.0636 in FY10) conceivable? If so, we are also looking at the likelihood that BBR's NAV/share rising to approx. $0.345 by 31Dec11, before counting the usual Final dividend for FY11 (last FY10: $0.006/share) - which hopefully should be a higher payout.

A relevant question: Bearing in mind BBR's good financial performance, how far would Mr Market reward in its share price?

[dydx]

S&P has issued a positive update report (dated 8Aug11) on BBR, following the impressive Q2/1H results announcement.....
http://research.sgx.com/reports/rpt_view.pl?id=6540

Based on the large construction order book which presently stands at $538m, and the expected profits from both the "Lush on Holland Hill" and "8 Nassim Hill" condo projects, I guess it is fair to expect BBR to do well financially into 2012 at least.

[RBM]

I agree with you dydx,

At yesterday's closing price of S$ 0.25 per share, BBR is now trading at a P/E of < 3. Its order book corresponds to 7 times market cap, which now stands at S$ 77 Mln. A well managed company, surely BBR is one of the buying opportunities arising out of the current market mess?

I am vested, so I concede I have a bias on this one. But I am so convinced regarding BBR's fundamentals that yesterday I added a few units at a price of S$ 0.24. Because of the ongoing market madness, I may well lose in the near term but over the medium-longer term perspective I believe BBR offers seriously good value.

[dydx]

Today (10Aug11), BBR resumed buying back shares from the open-market, after releasing a good set of Q1 results on 4Aug11. It is a little disappointing that the company managed to buy back only 4 lots (out of a total 552 lots transacted between $0.235 and $0.25, with the majority transacted at $0.24 and $0.245), as BBR management was also doing bottom fishing in a weakening market, but was queuing at a low price of $0.235.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument
So at least we know BBR management is not trying to support the share price in this operation. Of course, they could have pay a higher price, as they had done so before when the market was in a better state.

I really wish that BBR will buy back a lot more shares at the current low prices, as it will enhance the value - both in terms of EPS and NAV - of the remaining shares.

[dydx]

Yesterday (11Aug11), BBR managed to buy back another 200 lots at $0.22 - the low transacted of the day.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument
So we now know BBR management is pretty good in bottom-fishing too!

[pianist]

the volume today is only 1 lot traded at 0.215. I wonder who is the seller?

[karlmarx]

going by its net margins and order book, it will be able to maintain its present level of FY11 profitability for only one year, assuming there are not new orders. one year is not alot of buffer for them. a recession could hit their order books pretty hard.

[pianist]

going by its net margins and order book, it will be able to maintain its present level of FY11 profitability for only one year, assuming there are not new orders. one year is not alot of buffer for them. a recession could hit their order books pretty hard.

what sort of book order will suffice more than 1 year?

[karlmarx]

going by its net margins and order book, it will be able to maintain its present level of FY11 profitability for only one year, assuming there are not new orders. one year is not alot of buffer for them. a recession could hit their order books pretty hard.

what sort of book order will suffice more than 1 year?

there are several. a good one would probably be pacific shipping trust. because of their long contracts. while they are of different industries, pst's net margins and debt-to-equity levels are also comparable to bbr's.

it is of course, unrealistic to expect construction companies to have a few years' worth of order book, since development of physical spaces is dynamic to social, political, and economic development. i don't doubt the viability of the business, since there will always (i think it is safe to assume) be some form of renewal/innovation to the physical landscape, as directed by govt policy. but it doesn't sit well with me that demand for construction activity is mainly driven by govt policy. this is one risk too many for the kind of margins it make.

of course, at the right price, bbr could also be a value buy.