BBR Holdings

[RBM]

With these contract awards, BBR's order book - i.e. covering the period to 2015 - now stands at just over S$ 1 Billion. I can not recall when BBR's order book last exceeded the S$ 1 Billion mark .......... but in any event this is not bad news at all.

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.

[dydx]

I have finally found the time to review BBR's latest FY12 (ended 31Dec12) full-year results.....
http://info.sgx.com/webcoranncatth.nsf/V...A003AA7A9/$file/BBR_FY2012_profit_announcement.pdf?openelement [result announcement]
http://info.sgx.com/webcoranncatth.nsf/V...A003AA7A9/$file/BBR_FY2012_press_release.pdf?openelement [press release]

Without doubt, BBR belongs to 1 of those professionally and better managed listed general/specialist contractors, capable of delivering a steady profit from both construction and residential property development. BBR's management also stands out as financially very prudent and being able to maintain a good long-term working relationship with the many public sector agencies as direct customers in the construction side of the business.

I now look forward to the coming $0.012/share in total dividends - comprising a $0.008/share Final and a $0.004/share Special - which will be paid on 20May13. Would Mr Market re-rate BBR's share price further upwards towards its latest 31Dec12 NAV/share of $0.351 in the next few months? With the AR, AGM and the dividends coming, it looks like there is a fair chance for that to happen. We shall see.

[ngcheeki]

Win another S$102.8m contract to build flats in Kallang Whampoa and order book now at more than S$1.12 billion with projects lasting to 2016

http://info.sgx.com/webcoranncatth.nsf/V...9003D5CB8/$file/BBR_HDB_KallangWhampoa.pdf?openelement

Vested

[RBM]

Sharing a somewhat woffly video piece by Mark Landi of Investor Central on BBR Holdings and specifically the timing of BBR's contract award disclosures. You will have to ignore the ~30 second advertisement piece at the beginning…………..

http://video.xin.msn.com/watch/video/bbr...%257c%257c

For forummers who are vested, I think it is worth the 7 minutes or so that the video takes to run, although Landi could have gotten his message across in a somewhat shorter time frame.

Investor Central also posted the following narrative on their website; this is in the form of three questions which they posed to BBR and BBR Management's answers: ……………

QUOTE

Investor Central -
Company wins S$ 102.8 mln contract from the Housing Development Board

3/4/2013 – BBR Holdings (S) Ltd has won a fifth order from the HDB, this time a S$ 102.8 mln contract to build 755 flats in the Kallang Whampoa area in Singapore. According to the company’s announcement, the contract is for two 31-storey and two 32-storey HDB Blocks, among other item. BBR Holdings’ order book stands at S$ 1.12 bln as on March 25, 2013.

Investor Central. We keep your investments honest.

Question 1. Is the latest order win about HDB’s Tenteram Peak project?

We are almost certain that the contract is for Tenteram Peak, the only built-to-order (BTO) project awarded by HDB in Kallang Whampoa area since September 2012. We couldn’t find any other project recently awarded by HDB in Kallang Whampoa area. Also, the description of the property in company’s announcement is somewhat similar to Tenteram Peak’s description on HDB’s website.
Still, can you please confirm if S$ 102.8 mln contract is about Tenteram Peak project?

BBR Management Reply: Yes.

Question 2. How did discrepancies in the project arise?

Assuming that’s the case, we were surprised to see a few discrepancies in the claims of BBR Holdings and those posted on HDB’s website.

First, HDB’s website describes Tenteram Peak as 755 units over two 30-storey and two 31-storey residential blocks. Interestingly, this is different from BBR Holdings’ description of 31-storey and 32-storey blocks. Has HDB really trimmed the height of the blocks to 30-storey and 31-storey, as claimed in BBR Holdings’ announcement?

In another instance, BBR Holdings claims the development work has started and is scheduled for completion by April 2016. But HDB’s website estimates the project would be completed in Q4 2016.

And, has HDB shifted the project completion deadline from Q4 2016 to April 2016, as targeted by BBR Holdings?

BBR Management Reply We wish to apologise for the typo errors, it should have been two 30-storey and two 31-storey blocks. Our contract period stipulated in HDB’s letter of award is up to April 2016.

Question 3. Why doesn’t its order book add up?

According to its March 25 announcement, BBR Holdings’ order book stood at S$1.12 bln.

Just three weeks before this announcement, on March 4, the company announced S$ 61.6 mln worth of new orders won between November 2012 and January 2013, bringing its order book to S$ 1.02 bln. And another few days before that, on February 22, BBR Holdings announced its order book was S$ 960 mln (refer page 12 of FY2012 earnings announcement). We are wondering why the company announced order wins from November 2012 to January 2013 only on March 4, when it actually updated the market with different numbers on February 22. It is difficult for investors to make heads or tails of these numbers.

BBR Management Reply The order book as at 22.2.13 does not include the S$ 61.6 mil announced on 4.3.13. BBR decided to delay the announcement for projects secured from Nov 12 to Jan 13 due to our FY12 results announcement on 22.2.13, followed by the Singapore Budget 2013.
Order book as at 22.2.13 - S$ 960 mln
Add : projects announced 4.3.13 - S$ 61.6 mln
Add : Kallang Whampoa 25.3.13 - S$ 103 mln
Order book as at 25.3.13 - S$ 1,124.6 mln i.e. approx S$ 1.12 bln

We thank the management for the replies
UNQUOTE

I am not going to lose any sleep over this. In my personal view, while Landi has some good stuff on his site, in this instance I believe he is making a mountain out of a molehill.

Vested

[dydx]

I didn't know BBR is capable of building big bridges that span across rivers! In fact, per today's announcement, BBR has started work to build 2 of them - 1 in the town of Kuala Terengganu, West Malaysia; and 1 near Kuching, East Malaysia.....
http://info.sgx.com/webcoranncatth.nsf/V...50035852C/$file/BBR_Construction_of_2_Bridges_in_Malaysia.pdf?openelement
Impressive!

[pianist]

Bbr is a specialized constructor. They got ang moh technology as heritage.

[dydx]

A muted 1Q.....
http://info.sgx.com/webcoranncatth.nsf/V...400337CB2/$file/BBR_Results_for_1Q13.pdf?openelement

I guess when construction of the nearly fully-sold 140-unit Bliss @Kovan condo project (TOP by latest Dec15) gets past the key stages in the next few quarters, the related development profits will flow in and boost BBR's earnings in quite a significant way. I am still waiting for BBR to dispose of the remaining 7(?) units in the completed super high-end 8 Nassim Hill condo en bloc which should bring in - with some luck! - close to $20.0m in sale proceeds and $10.0m in profits for its 48% interest in the project.

[dydx]

After the counter having gone 'XD' on 3May13 for the total $0.012/share Final+Special dividends for FY13, today (8May13) BBR started to buy back its own shares from the open-market again, buying 200 lots at $0.27/share.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument

While the shares bought are likely for the company's performance share scheme, I suppose BBR's management and BOD are also indicating to the market that in their opinion, BBR shares at $0.27 do offer good value.

[Jacmar]

While the shares bought are likely for the company's performance share scheme, I suppose BBR's management and BOD are also indicating to the market that in their opinion, BBR shares at $0.27 do offer good value.

I don't think this is the right conclusion. Unless they already own a lot of Treasury shares or buying much more than they require for the performance share options then they will have to buy at whatever the market price is.

not vested

[dydx]

Even if we just assume BBR is buying back shares only to 'fund' the performance share options scheme, can we assume BBR's management and BOD to just buy back shares at any prices, or more like they would do so only when the prices are low enough in their opinion. I think we have to assume BBR's management and BOD together should know what's the fair intrinsic value of each BBR share, and would apply a reasonable margin of safety to it before arriving at an appropriate price range which guides their shares buy-back activities.