BBR Holdings

[dydx]

Another share buy-back today (9May13): 93 lots at $0.27.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument

[TheMillennium]

Yet another share buy back today.

[ngcheeki]

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.

From The Edge, 13 May copy, there was an update on the sale status for the 8 Nassim Hill project. The sale consists of 3 units of penthouses and 2+1 townhouses with sizes ranging from 3,218 to 4,338 psf. and 5,759 psf. Out of the 6 units put out for sale, 3 units are sold with an average price of $2,450. However, there was no mention on the type of unit sold.

[dydx]

Good, if BBR actually managed to sell another 3 units of the completed 8 Nassim Hill townhouse project recently (i.e. in 2Q), then the sale should be completed latest in 3Q. At which point, BBR will be able to book the related gains into its P&L.

[vested]

New here.. decided to finally join in the discussion after a long time following all the discussions here in valuebuddies. have learned a lot and hope to continue learning from all of you and start contributing by bouncing off thoughts, and I hope my questions are not too n00b

For BBR, is there any reason why despite having similar magnitude order books 1bn+ and being in the same sector (construction mainly), the market cap of BBR vs Lian Beng seems so vastly different (80mil vs 300mil)?

Granted, current revenue is still much smaller, as order book of BBR only got boosted relatively recently, which will only get realized when those projects begin in the next 1-2 yrs. on profitability, Lian Beng commands better margins (I suppose due to nature of projects?). on popularity, Lian Beng is also a much more widely covered stock which could garner more buying interest.

Any other fundamental reasons that might explain this difference? and could we expect the gap to close moving forward as BBR gets busy with the increased order book (more revenue), and improved efficiency / favourable project mix (better margins)?

[ngcheeki]

Good, if BBR actually managed to sell another 3 units of the completed 8 Nassim Hill townhouse project recently (i.e. in 2Q), then the sale should be completed latest in 3Q. At which point, BBR will be able to book the related gains into its P&L.

Based on the latest press release after the 2QFY2013, only 1 unit is left for the 9 Nassim Hill project. BBR is one of the 30 picks by OSK-DMG.

"The Group has also jointly developed with Shing Kwan (Pte) Ltd an upmarket development comprising 16 super luxury triplex units with basement car parks at 8 Nassim Hill, of which only one is unsold."

http://infopub.sgx.com/FileOpen/BBR_2Q20...eID=251118

DMG BBR Report on 12 August 2013:

BBR’s 2Q13 PATMI was 4.7% lower y-o-y at SGD2.8m, even as revenue jumped 76.5% to SGD104.3m, largely due to lower margins from existing projects and lower revenue from property development. While it has a healthy orderbook, BBR is facing cost pressures amid moderate economic growth. That said, BBR’s capabilities put it in good stead to secure new projects. Maintain BUY.

To recognize profits from property development in 3Q13. BBR expects its Bliss @Kovan project (92%-sold) to be at least 20% completed by end-3Q13, whereupon it would start recognizing the profits from this project (including those relating to the completion of the initial 20%). Thus this would boost PATMI and margins from 3Q13. As the project involves property development, there was zero margin from this division in 2Q13. This dragged down the company’s overall gross margin to 6.6% (from 14.6% in 2Q12).

More activity from property development. BBR and its JV partners were recently awarded a 217,298.4 sq ft piece of land by the HDB. This leasehold land is slated for the development of a 500-unit executive condominium (EC). BBR has a 35% stake in this JV. Management expects to launch the project in 2014, with temporary occupation permit (TOP) expected to be obtained in 2016.
Orderbook healthy but prospects challenging. BBR’s orderbook totaled SGD1.1bn as at end-2Q13, and would last it till FY16. Although the Government has a number of infrastructure projects in the pipeline, the company’s outlook is clouded by increasing competition and rising labour costs. Given BBR’s track record, however, we think it is still in a good position to secure new contracts.

Maintain BUY. We expect the contribution from associates to improve in FY13 as BBR has sold off five of the remaining six units at its 8 Nassim Hill project, with sales completion expected over the next two quarters. As more projects reach 20% completion in 2H13, margins are likely to improve. Hence, we are adjusting our FY13 estimates slightly. Maintain BUY, with a SGD0.35 TP, based on 5x FY13F P/E.

http://www.remisiers.org/cms_images/rese...atters.pdf

[dydx]

3Q (ended 30Sep13) results just out.....
http://infopub.sgx.com/FileOpen/BBR_3Q13...eID=262747 [announcement]
http://infopub.sgx.com/FileOpen/BBR_3Q13...eID=262746 [press release]

Notwithstanding the tough local operating environment for general construction, it looks like BBR is poised to record a good profit in FY13 (ending 31Dec13). Based on a fully-diluted EPS of $0.0428 for the first 3Qs, full-year EPS is poised to hit $0.05, and year-end (as at 31Dec13) NAV/share is poised to come close to $0.40 (from $0.3815 as at 30Sep13).

BBR's large and diversified order book of $1.0b, comprising general construction and specialised engineering contracts and including quite a decent portion in Malaysia, places the group in a strong position among Singapore-based construction companies.

[vested]

The latest disclosures on 23rd Dec seems a little confusing to me, hope somebody could help to explain..

http://infopub.sgx.com/Apps?A=COW_Corpor...&F=1026413

Under section 7: The circumstance giving rise to change of interest is: "An aggregate of 989,000 shares were purchased by the listed company in a series of transactions."

However in section 8: number of shares held before and after the transaction remained the same at 85,632,978. While the % increased from 27.89% to 27.98%.

Anybody can share an insight how to interpret this announcement? Typo of .89 & .98? And where did the 989,000 shares come from and go to?

[yeokiwi]

The latest disclosures on 23rd Dec seems a little confusing to me, hope somebody could help to explain..

http://infopub.sgx.com/Apps?A=COW_Corpor...&F=1026413

Under section 7: The circumstance giving rise to change of interest is: "An aggregate of 989,000 shares were purchased by the listed company in a series of transactions."

However in section 8: number of shares held before and after the transaction remained the same at 85,632,978. While the % increased from 27.89% to 27.98%.

Anybody can share an insight how to interpret this announcement? Typo of .89 & .98? And where did the 989,000 shares come from and go to?

The purchased shares become treasury shares and reduce the total outstanding shares in the market.
Since total issued shares drop, the % owned by substantial shareholder will increase.

Go to SGX announcement and calculate the total repurchased shares since 3rd quarter.
Minus this amount from the outstanding shares quoted in the 3rd quarter financial statement.
Use the calculated amount to derive the % owned by the substantial shareholder.

[vested]

The latest disclosures on 23rd Dec seems a little confusing to me, hope somebody could help to explain..

http://infopub.sgx.com/Apps?A=COW_Corpor...&F=1026413

Under section 7: The circumstance giving rise to change of interest is: "An aggregate of 989,000 shares were purchased by the listed company in a series of transactions."

However in section 8: number of shares held before and after the transaction remained the same at 85,632,978. While the % increased from 27.89% to 27.98%.

Anybody can share an insight how to interpret this announcement? Typo of .89 & .98? And where did the 989,000 shares come from and go to?

The purchased shares become treasury shares and reduce the total outstanding shares in the market.
Since total issued shares drop, the % owned by substantial shareholder will increase.

I see.. wow, simple answer. Thank you and have a Merry Christmas!