Boustead Singapore

[Curiousparty]

Rest of Boustead group is going at market share price of only 15cents??

Boustead Group has a NET CASH position of 98 cents.
Current share price is $1.20 (with 7 cents dividend).

This means that the rest of Boustead group is going at a market share price of only 15cents.

1. Geo spatial segment with PBT of >40mil (per annum), and growing strongly. Exclusive distributorship. Pandemic resilient, profit even increased during COVID19. This segment itself is worth close to 80 cents (according to CIMB latest report).

2. 53% of BP which still have at least $700mil of properties to be divested in a measured pace over next few years. BP also has many strategic investments (e.g. 4% stake in Beijing Tongzhou Integrated Development Phase 1 worth billions of dollars)

"Established in 2012, we joined a consortium led by PREH to develop Beijing Tongzhou Integrated Development Phase 1, a mixed-use Grade A iconic landmark development at the centre of Beijing Tongzhou’s Central Business District. We hold a 4% shareholding in Phase 1, which features a proposed 413,000 square metres of gross floor area with an eight-level retail podium, two office towers and one residential tower, with targeted completion in 2023. In FY2020, the fair value of our investment in Phase 1 was S$31.3 million"

"Going forward, we will continue to focus on building upon our resilient strategic partnerships and platforms to support our medium to long-term growth efforts in Singapore and the region, and penetrate new high value-added industries and real estate sectors."

https://www.bousteadprojects.com/about/o...tnerships/...

3. Health care (nascent)

4. Energy-related engineering

[valuebuddies]

If I may just add, the consolidation has taken into account 100% of the cash from all subsidiaries, that means BS has recognised entirely almost 300m cash from BP eventhough it owns only 52%. So if we remove the impact of this 48% NCI, the cash would be ard 330m (assuming no significant impact from other non-fully owned subsidiaries). On 485m shares, it represents 68c.

BS is going to pay 7c div, and this 7c is part of the abovementioned 68c, so i will not take this into consideration.

BP is going to pay abt 15c div to BS, again this is part of the 68c, hence it should be ignored in the calculation.

Share price right now is 1.20, so the business and all assets excluding cash should be 52c

(Vested)

[Curiousparty]

If I may just add, the consolidation has taken into account 100% of the cash from all subsidiaries, that means BS has recognised entirely almost 300m cash from BP eventhough it owns only 52%. So if we remove the impact of this 48% NCI, the cash would be ard 330m (assuming no significant impact from other non-fully owned subsidiaries). On 485m shares, it represents 68c.

BS is going to pay 7c div, and this 7c is part of the abovementioned 68c, so i will not take this into consideration.

BP is going to pay abt 15c div to BS, again this is part of the 68c, hence it should be ignored in the calculation.

Share price right now is 1.20, so the business and all assets excluding cash should be 52c

(Vested)

- geo-spatial alone is worth about 80 cents, assuming PBT (about 40mil) and still growing strongly...
- BP's RNAV is easily more than $2, with Alice, Braddell, Tampines, Razor HQ AND 700mil worth of ready properties to be divested + other investments (e.g. in China, Vietnam, etc). Boustead's share is easily more than $0.65
- Energy-related Engineering (oil price is recovering strongly. Boustead should be able to replenish the book orders in next few months)
- Health-care (nascent) - not much value add yet

Is 50 cents too cheap for the above 4 businesses??

[Curiousparty]

Key Beneficiary of monetization of BP projects worth more than $1bil....


By next year , net cash at Boustead's Group Level will cross $1.

Boustead will continue to benefit from BP divestment - at least $1bil worth

a. 700mil worth of ripe projects to be injected into platform

"Separately under the real estate segment, the BP Group received temporary occupation permits for two of its three Singapore developments under construction, namely 351 on Braddell and Bombardier Singapore Service Centre Phase 2 during FY2021. The remaining development, Razer SEA HQ received temporary occupation permit shortly after the end of FY2021. On the leasing front, the BP Group secured new leases totalling over 53,700 square metres of net lettable area – with the likes of Zuellig Pharma, NETS, Shopee, JustCo and a Fortune 500 technology corporation – over the course of FY2021 and achieved more than two-thirds committed occupancy for 351 on Braddell and Razer SEA HQ prior to receiving temporary occupation permits.

Moving forward, the BP Group expects to progressively benefit from the ongoing asset stabilisation of its key multi-tenanted/multi-user developments including ALICE@Mediapolis, 351 on Braddell, Razer SEA HQ and 6 Tampines Industrial Avenue 5.

Furthermore, the BP Group has a portfolio of leasehold properties outside of BIF – most on joint venture arrangements – that has an expected total market valuation that exceeds S$700 million and that can potentially be injected into BIF or other future property trusts to further unlock value in future years."

b. 4 mega projects - Braddell, Razer HQ, ALICE@Mediapolis and Tampines

c. Vietnam platform (13 properties ready to be seeded and many more to come)
https://alanyeo.files.wordpress.com/2021...062021.pdf

d. other strategic projects
(e.g. Beijing Tongzhou Integrated Development Phase 1, a mixed-use Grade A iconic landmark development at the centre of Beijing Tongzhou’s Central Business District. BP holds a 4% shareholding in Phase 1, worth about S$2.4 billion !!

https://www.perennialholdings.com/misc/F...7Oct14.pdf


2. Boustead's very strong geo spatial will continue to ride on smart nations and pandemic

3. energy related segment

4. Health care

DYODD

[CY09]

I am interested in the geo spatial segment.

Over the past 5 years, revenue has grown CAGR of 11% and profits before tax by 14%. It shows that due to operating leverage, net profits can grow faster than revenue.

If it follows the P/E of software companies, the valuation can range from 15-20 times of current earnings which is slightly more than the current market cap of Boustead Singapore.

<vested>

[Curiousparty]

I am interested in the geo spatial segment.

Over the past 5 years, revenue has grown CAGR of 11% and profits before tax by 14%. It shows that due to operating leverage, net profits can grow faster than revenue.

If it follows the P/E of software companies, the valuation can range from 15-20 times of current earnings which is slightly more than the current market cap of Boustead Singapore.

<vested>

yes, this is why Boustead is so undervalued.

Net cash crossing $1 soon (not including marketable securities of ~$40mil) ....Madnesss...!!

[Bibi]

Is Google Map a competitor to Boustead Geospatial solutions ESRI?

https://www.g2.com/compare/esri-arcgis-v...e-maps-api

[Curiousparty]

Is Google Map a competitor to Boustead Geospatial solutions ESRI?

https://www.g2.com/compare/esri-arcgis-v...e-maps-api

most government agencies used Esri while SME used Google Map...

Which one more credible??

---

https://valueinvestasia.com/interview-wi...singapore/


Stanley Lim: Oh, okay! Interesting! And sort of, I guess because given that you are the exclusive distributor to ESRI and a lot of your potential and your revenue is coming and very dependent on what ESRI is doing. Do you see a trap? What I’m seeing is a lot of the technology is moving very fast in terms of development, and also it’s sort of becoming democratized , like you’re talking about satellites in the past is a huge satellite, but now they have a cube set where almost anyone, not anyone, but generally speaking, most people are able to send up satellites now, and we’re talking about your geospatial technology on say traffic mapping, I don’t know if a WEIS or Google they are using the ESRI at the background, but you know, we see more and more of this company, both large and small startups that is you know, destructing this kind of industry. Does that bother you? Is that a thing that investors should be worried about?
 
Keith Chu: I mean you’re right. Technological disruption at this point in time, it’s probably as highest in history, right? But we’re actually pretty happy with the situation at the moment because of the fact that this disruption a lot of them are riding really on the need or underlying mapping platform. So, like you said WEIS right? WEIS actually rides on the ESRI platform in the background? We’re talking about quite a number of start-ups around the world as well as here in Singapore where they are also increasingly tapping on the ESRI platform.
 
Many of them of course, been startups right? They try to tap almost free, but they use Google maps for example, what they find is that the information is all debit by Google and it tends not to be verified, right, because it’s free information again. So, that platform also limits that ability to do analysis, it doesn’t have all the tools that they need. So what we’re finding really is that when it comes to the need for more robust tools, and to do more things, then a lot of companies have come to ESRI, and of course the government agencies, most of them are using ESRI rarely because it’s always stayed at the forefront in terms of technological development.

[fallscushion]

I totally agree Boustead is undervalued by Mr Market (which refer to specuvestors outside of controlling shareholder).
Otoh, I also understand why Mr Market is valuing it that way.
That tons of cash have been there and not really doing much (except occasional small acquisitions).
Their acquisitions, by and large, are all having good returns but it's just not a substantial usage of the idled cash.

The price shows the frustration of the different expectation of Mr Market against Mr Wong.
Mr Market have been trying their best to pressure Mr Wong to return the idled cash for years (at least since 2010, the year I invested in the co).
Mr Wong otoh has been trying his best to keep the cash for "a big elephant" acquisition (since 2010, no result yet).

Imo, investors in Sg are chasing for Dividend and hence the hot & popular REITs.
Also probably the main reason why Boustead is underpriced.
Investors going into this company really need to adjust their expectation on the return of the cash (or the lack of it).
It's over 10years already and I don't think Mr Wong is going to change his stand soon (if ever).

<vested, near core>

[fallscushion]

Is Google Map a competitor to Boustead Geospatial solutions ESRI?

https://www.g2.com/compare/esri-arcgis-v...e-maps-api

Google Map used to have a version for Corporate customers, but was ditched a few years ago and IIRC they have asked (or facilitated) the customers to switch to ESRI.

https://www.esri.com/en-us/landing-page/...p/overview