Boustead Singapore

[ksir]

I'm rather positively suprise that Energy related unit was still throwing a bit of profit. Probably the worst is yet to come.
However the ESRI unit again had another bad Quarter. The business model may not as strong or as recurring as expected.

I was again pleasantly surprised by BP result.

Moving some of my capitals from BH to BP.

<vested near core>

I've come to the same conclusion as you, and have moved my capital from BSL to BP. In my humble opinion, if any of the 3 divisions (of course, BP was spun out) is going to do well, my bet is that BP will break out first.

I still put a bigger portion of my stakes in BSL. Mainly due to the cash hoard & no debt (excluding BP) & of course Geospatial unit.

In fact BSL is my top 3 core holding currently (but not adding more unless it goes down below NAV).

However has been allocating more capitals into BP recently along with the fall of the industrial market (or so as according to the common news pool).

[sykn]

I'm rather positively suprise that Energy related unit was still throwing a bit of profit. Probably the worst is yet to come.
However the ESRI unit again had another bad Quarter. The business model may not as strong or as recurring as expected.

I was again pleasantly surprised by BP result.

Moving some of my capitals from BH to BP.

<vested near core>

I've come to the same conclusion as you, and have moved my capital from BSL to BP. In my humble opinion, if any of the 3 divisions (of course, BP was spun out) is going to do well, my bet is that BP will break out first.

I still put a bigger portion of my stakes in BSL. Mainly due to the cash hoard & no debt (excluding BP) & of course Geospatial unit.

In fact BSL is my top 3 core holding currently (but not adding more unless it goes down below NAV).

However has been allocating more capitals into BP recently along with the fall of the industrial market (or so as according to the common news pool).

Thanks for sharing; I will give this some further consideration in light of what you have said. Best regards.

[TTTI]

I'm rather positively suprise that Energy related unit was still throwing a bit of profit. Probably the worst is yet to come.
However the ESRI unit again had another bad Quarter. The business model may not as strong or as recurring as expected.

I was again pleasantly surprised by BP result.

Moving some of my capitals from BH to BP.

<vested near core>

I've come to the same conclusion as you, and have moved my capital from BSL to BP. In my humble opinion, if any of the 3 divisions (of course, BP was spun out) is going to do well, my bet is that BP will break out first.

I still put a bigger portion of my stakes in BSL. Mainly due to the cash hoard & no debt (excluding BP) & of course Geospatial unit.

In fact BSL is my top 3 core holding currently (but not adding more unless it goes down below NAV).

However has been allocating more capitals into BP recently along with the fall of the industrial market (or so as according to the common news pool).

Thanks for sharing; I will give this some further consideration in light of what you have said. Best regards.

I think in the near to mid term, BP will find it hard to do v well
The industrial sector is just starting to show signs of oversupply in a market where demand is definitely slowing

BSL would be better than BP IMO
Also, the other concern I have is that BP was actually hived out of BSL so as to give FF wong's protege Thomas Chu, and his son, an entity to head each
It's just something that crossed my mind.
I don't think it's a bad decision per say but that could be the motivation behind actually splitting up the division to list

[ksir]

I'm rather positively suprise that Energy related unit was still throwing a bit of profit. Probably the worst is yet to come.
However the ESRI unit again had another bad Quarter. The business model may not as strong or as recurring as expected.

I was again pleasantly surprised by BP result.

Moving some of my capitals from BH to BP.

<vested near core>

I've come to the same conclusion as you, and have moved my capital from BSL to BP. In my humble opinion, if any of the 3 divisions (of course, BP was spun out) is going to do well, my bet is that BP will break out first.

I still put a bigger portion of my stakes in BSL. Mainly due to the cash hoard & no debt (excluding BP) & of course Geospatial unit.

In fact BSL is my top 3 core holding currently (but not adding more unless it goes down below NAV).

However has been allocating more capitals into BP recently along with the fall of the industrial market (or so as according to the common news pool).

Thanks for sharing; I will give this some further consideration in light of what you have said. Best regards.

I think in the near to mid term, BP will find it hard to do v well
The industrial sector is just starting to show signs of oversupply in a market where demand is definitely slowing

BSL would be better than BP IMO
Also, the other concern I have is that BP was actually hived out of BSL so as to give FF wong's protege Thomas Chu, and his son, an entity to head each
It's just something that crossed my mind.
I don't think it's a bad decision per say but that could be the motivation behind actually splitting up the division to list

To me, indeed it is a split for his 2 sons.
But which one to let go to fly on his own? The more established and likely to succeed of course?!

For my limited interaction with both of the sons in few agm, i bet my $ on BP.

[TTTI]

I'm surprised that nobody has talked about the latest results release.
The latest conference call was very entertaining and very enlightening.

I'm minimally vested in this company, but think there will be huge opportunities in the near future.

[Retired@52]

Hi TTTI,

Thanks for posting the link to the write out on Boustead Singapore. Worth Reading for Value Investors.

https://thumbtackinvestor.wordpress.com/

[TTTI]

Hi TTTI,

Thanks for posting the link to the write out on Boustead Singapore. Worth Reading for Value Investors.

https://thumbtackinvestor.wordpress.com/

Thanks for your compliment, just my 2 cents worth.

[thor666]

I'm rather positively suprise that Energy related unit was still throwing a bit of profit. Probably the worst is yet to come.
However the ESRI unit again had another bad Quarter. The business model may not as strong or as recurring as expected.

I was again pleasantly surprised by BP result.

Moving some of my capitals from BH to BP.

<vested near core>

ESRI is actually fairly resilient.
Geo-spatial revenue has dropped 17% this quarter, but its more accurate to look at the YTD figures, which shows that it has dropped 10% YOY.
However, much of this loss is actually due to the strengthening of the SGD vs the AUD
The AUD has weakened about 5% or so from Jan 2015 compared to end of 2015, so the "real" drop is probably around 5% only.
5% increase or decrease in most industries, would be merely normal volatility.
Rather, it is the energy division that has experienced a big drop (30%), but even that is considered fairly resilient seeing how worldwide, oil has been really battered.
As always, management has been honest, giving guidance that they expect the oil sector to remain depressed throughout 2016, and likely into 2017 too.
While nobody really knows how things will pan out (other than the Saudis), in the long run, it's never really been wise to bet against FF Wong.
However, as a upstream operator, I do think that even if oil prices recover, it will take several months before Boustead sees an uptick.
It will be a prolonged period of lean months/years, what is most crucial now is how Boustead utilises the cash hoard it has.
As we all know, the previous deal fell through, which is a major disappointment IMO.
I'm sure FF Wong is already looking at how to reinvest the capital, hoping for some good news in this regard.

<vested>

I stumbled on this randomly and it just rang a bell:

http://www.dailymail.co.uk/sciencetech/a...field.html

See if you can catch the company mentioned.

Undoubtedly this is one of BSLs cash cow.


Sent from my LG-H818 using Tapatalk

[TTTI]

I'm rather positively suprise that Energy related unit was still throwing a bit of profit. Probably the worst is yet to come.
However the ESRI unit again had another bad Quarter. The business model may not as strong or as recurring as expected.

I was again pleasantly surprised by BP result.

Moving some of my capitals from BH to BP.

<vested near core>

ESRI is actually fairly resilient.
Geo-spatial revenue has dropped 17% this quarter, but its more accurate to look at the YTD figures, which shows that it has dropped 10% YOY.
However, much of this loss is actually due to the strengthening of the SGD vs the AUD
The AUD has weakened about 5% or so from Jan 2015 compared to end of 2015, so the "real" drop is probably around 5% only.
5% increase or decrease in most industries, would be merely normal volatility.
Rather, it is the energy division that has experienced a big drop (30%), but even that is considered fairly resilient seeing how worldwide, oil has been really battered.
As always, management has been honest, giving guidance that they expect the oil sector to remain depressed throughout 2016, and likely into 2017 too.
While nobody really knows how things will pan out (other than the Saudis), in the long run, it's never really been wise to bet against FF Wong.
However, as a upstream operator, I do think that even if oil prices recover, it will take several months before Boustead sees an uptick.
It will be a prolonged period of lean months/years, what is most crucial now is how Boustead utilises the cash hoard it has.
As we all know, the previous deal fell through, which is a major disappointment IMO.
I'm sure FF Wong is already looking at how to reinvest the capital, hoping for some good news in this regard.

<vested>

I stumbled on this randomly and it just rang a bell:

http://www.dailymail.co.uk/sciencetech/a...field.html

See if you can catch the company mentioned.

Undoubtedly this is one of BSLs cash cow.


Sent from my LG-H818 using Tapatalk

That's ESRI UK though
ESRI has licenses managed by different entities all over the world
BSL does not own ESRI UK though

[ksir]

Boustead 2016 AR is out:
http://infopub.sgx.com/Apps?A=COW_CorpAn...AR2016.pdf

It's always interesting to read FF Wong's message in AR.
Quoted below points:

Today, we are in energy, property and technology. Will it be so 20, 50 or even 100 years down the road? We hope so. However, Charles Darwin’s theory of evolution is as applicable to corporations as it is to living species. If a corporation does not evolve, it will likely be made extinct by a stronger, fitter and more agile competitor. There are times when we have to let go of our past glories. It is the same with companies. A highly successful product or service today may not necessarily be successful tomorrow. An unadaptable or stubborn corporation will try its best to hold onto such products and services even when they become irrelevant. The corporations that enjoy longevity do things differently. They evolve. They create a different business and adapt to the prevailing times. Remember, change is the only constant. And in today’s context, change produces not only a great deal of opportunities but helps us to survive.

Our Cash Flow-Driven Business Model
When evaluating how a company performs financially, is total profit the best indicator? Not in my books. A much better indicator is free cash flow generated. A corporation that generates huge paper profit but negative or little free cash flow is just a masquerade; sustainable dividends cannot be paid, acquisitions not made, debts remain unpaid and a bright future is never laid.

Our total cash and ungeared position offer great flexibility to change course and direction unfettered in this storm. A highly geared corporation can only sail straight into the eye of the storm because at least one hand has been chained, if not two. We, on the other hand, can navigate around the periphery because without gearing, not only are our hands free, our eyes are also free to spot acquisitions and investments which may be floating around.

Let me add a disclaimer though. Acquiring a business is easy. Acquiring a great business is most difficult. It rarely if ever boils down simply to price-to-earnings ratios. It often encapsulates complex evaluations of macroeconomic conditions, industry competitive landscape, branding, business model, barriers to entry, competitive advantages, technical knowledge, risk management and most importantly, people

<vested>