Boustead Singapore

[Yoyo]

I am interested in the partial scrip dividend option. How do I calculate how many share equvielent for cash versus new shares? 

I was looking to add new shares but make it a round number, as opposed to having some odd lots with the full dividend value in shares.

Company Announcement -  The Board has determined that fractional entitlements to New Shares under the Scrip Dividend Scheme shall be rounded up to the nearest whole number or otherwise dealt with in such manner as the Board may deem fit in the interests of the Company and which is/are acceptable to the SGX-ST.

4.9 Share entitlement
The Directors shall have full power to make such provisions as they think fit where the number of New Shares calculated in accordance with the above formula becomes attributable in fractions, including provisions whereby fractional entitlements are rounded down to the nearest whole number or otherwise dealt with in such manner as they may deem fit in the interests of the Company and which is/are acceptable to the SGX-ST.

In the end of the day, I am confused whether it is rounded up or down.

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I have opted for partial scrip dividend via sgx website scrip election. <No of existing share 50,000>

First, login to portfolio (cdp internet), then under the boustead section - click on the scrip election (E-Corporate Action), this will bring you to the corporate actions form submission for your scrip election.

You will be requested to enter the number of existing share to receive dividend in the form of new shares.

When I entered in 49500, the auto-generated indicative number of New Shares (rounded down) given is 2199.
As such, I revised my entered number to 49501, giving an indicative 2200 New Shares.

Just sharing.

[LionFlyer]

Thanks. I did the calculation on Excel using Round up. I will check online, to see if the calculation aligns.

I have held Boustead Singapore for more than 10 years, buying regularly over the years.

@weijian, indeed, sometimes we need to look beyond the numbers. I've moved into the sg mgmt team of an international MNC in the last few years. 

Business enviroment is tough and being able to execute and survive repeated crisis both macro as well as by own's mistakes is a very very difficult thing to do.

[ghchua]

Hi Yoyo,

The formula in the scrip dividend election form already stated that it will be rounded up to the nearest whole number, with a worked example of one holding 1000 shares and ended up with 45 new shares (rounded up from 44.44). So, I don't see any reason why one would think otherwise.

The auto-generated indicative number of New Shares on CDP website will always be rounded down, regardless of which company you used for scrip dividend election. Therefore, do not use that one as an indication that this scrip dividend will be rounded down.

[Curiousparty]

low interest rate will greatly benefit Boustead which now has 99.X% of Boustead Projects with RNAV more than $2 easily...

This alone will contribute to ~$1.25 NAV of Boustead ( i.e. $2 x 313/495)..

Then, we still have Geo-spatial which now easily achieve $40mil (operating profit per annum). Give it PE of 15 which is $600mil or ~$1.20.

The rest are net cash of $0.77.
Engineering segment + Health care..

$1.25 (BP) + $1.20 (Geo-spatial) + $0.77 (net cash) + $0.50 (Engineering & Health Care) = $3.72????!!!

Share price only $1.03???!!!

[LionFlyer]

Your SOTP is based on PE multiple? Have you tried with EBITA multipler/EV? I got around $1.7.

[Curiousparty]

Your SOTP is based on PE multiple? Have you tried with EBITA multipler/EV? I got around $1.7.

$1.7 for the whole of Boustead including net cash of $0.77????

U can check up the PE multiples for software companies... usually, they are in the 20s/30s...

https://pages.stern.nyu.edu/~adamodar/Ne...edata.html

[LionFlyer]

Yes inclusive. Net cash per share is 0.75 (based on 368.6 mil / 491 mil shares) 

different valuation, different outcomes

https://valueinvesting.io/F9D.SI/valuati...nsic-value

But 3.72 seems rather optimistic

-------------------------------------------------
Revenue EBITA (mil)
Real Estate 369.5 31.2
Energy 174 17.5
Geospatial 212.7 40
Healthcare 10.6 0.2
Total 766.8 88.9
EBITA multipler
Real Estate 15 468
Energy 10 175
Geosptial 15 600
Healthcare 10 2

Total Enterprise Value 1245

Current float 491 shares

Equity Value $837.40 mil

Total Debt 39 mil
Total Cash 368.6 mil Net cash per share 0.750712831

Value Per share $1.71

[dzwm87]

In the past, management spun off Boustead Projects in order to remove the holding co discount and spin off a REIT. Just curious why should market assume full RNAV for Boustead Projects now that it is consolidated back under Boustead Singapore again?

P.S. Stopped following them since 2019. Might have missed some info in between.

[Curiousparty]

Real estate segment should use RNAV method , rather than EV method...

[Curiousparty]

if total value of Boustead is only $1.7 including net cash, after removing net cash, the rest of Boustead is worth only $1???!!!