Boustead Singapore

[greengiraffe]

Sounded like a very complicated deal. I will simply take it that Boustead will book S$5.7m net profit from the sale in FY14.

Still good news. More importantly, Boustead recycled the money in China to another project within China - strict country risks management.

Vested

http://info.sgx.com/webcoranncatth.nsf/V...90032DBD4/$file/Boustead_Announcement-Proposed_Sale_of_a_Subsidiary-25.03.2013.pdf?openelement

As mr wong has said during the retail investor day, the tongzhou property will be divested and the proceed will be re-invested into the pcrt project in tongzhou

(vested)

[greengiraffe]

(i) Presentations from the forgotten wrong term investment, OMH:

http://asx.com.au/asxpdf/20130326/pdf/42...lm65gn.pdf

---

(ii) Land of rising sun for Boustead's small and new venture:

A committee of experts advising the METI this month recommended the price paid for solar power should be cut beginning April 1.
Even at the reduced rates, Japan’s support for solar is about three times the incentives offered in Germany and China, two countries that are among the biggest markets for the technology.


http://www.bloomberg.com/news/2013-03-25...focus.html

Panasonic’s Solar Unit to Post Profit on Homeowner Focus
By Mariko Yasu & Chisaki Watanabe - Mar 25, 2013 11:00 PM GMT+0800

Panasonic Corp. (6752), the Japanese electronics maker forecasting an annual loss, said its solar- panel operation will probably remain profitable amid growing demand from Japanese homeowners, the head of the business said.
Shipments in February reached a record level as Japan’s feed-in-tariff system for electricity triggered demand for rooftop systems, Kazuhiro Yoshida, who heads the business, said in an interview in Tokyo yesterday, declining to elaborate.
Panasonic is targeting Japanese individuals for its HIT- brand solar cells, a strategy that has helped preserve profitability and protect the business from a glut in commercial production, he said. The Osaka-based company is focusing on premium products for residential users as an oversupply in large-scale facilities led to price declines and threatened the survival of Suntech Power Holdings Co., once the biggest solar- panel maker, he said.
“Demand is booming in Japan,” Yoshida said, “It is not our goal to become number one company. Our focus is how to be profitable.”
Japan is one of the few bright spots among established solar markets globally where a supply glut dragged down panel prices 25 percent in the past year amid declining demand from Europeas governments cut subsidies.
Japan added 1,119 megawatts of solar energy capacity in the nine months ended Dec. 31 to the 4,800 megawatts already installed, the Ministry of Economy, Trade and Industry said March 13. The country will probably be one of the top three markets this year, according to Bloomberg New Energy Finance.
Government Incentives
A committee of experts advising the METI this month recommended the price paid for solar power should be cut beginning April 1.
Even at the reduced rates, Japan’s support for solar is about three times the incentives offered in Germany and China, two countries that are among the biggest markets for the technology.
Shares of Panasonic were unchanged at 676 yen in Tokyo trading yesterday. The stock has gained 30 percent so far this year, outperforming Japan’s benchmark Nikkei 225 Stock Average that added 21 percent.
Suntech Power, based in Wuxi, China, became the solar industry’s biggest corporate failure this month while Robert Bosch GmbH, the largest car-parts maker, abandoned a near $2.6 billion foray into solar-power equipment.
Panasonic started shipping solar devices from its new plant in Malaysia this year, as part of its efforts to reduce production costs by 20 percent, Yoshida said. The company also makes solar cells at two domestic factories and modules at a plant in Hungary.
Production Boost
The electronics maker may boost its production of solar panels by about 30 percent in the year starting April 1 because of the government incentives, Yoshida said in June, without providing a shipment target.
Margins for the solar business are currently between 5 percent and 10 percent, Yoshida said yesterday. The company is aiming for a 10 percent operating margin for the business, he said.
President Kazuhiro Tsuga is set to brief reporters March 28 on a business plan that includes measures to revamp the company.
Panasonic, which is losing money in televisions and mobile phones, is projected to return to net income of 80.5 billion yen in the 12 months starting April 1, compared with a forecast net loss of 745 billion yen this fiscal year, according to the average of 16 analysts’ estimates compiled by Bloomberg.
To contact the reporters on this story: Mariko Yasu in Tokyo at myasu@bloomberg.net; Chisaki Watanabe in Tokyo at cwatanabe5@bloomberg.net
To contact the editor responsible for this story: Robert Fenner at rfenner@bloomberg.net

[greengiraffe]

Dr Robert Yap is featured in the article. Due to the Tuas MRT line, YCH's flagship has been compulsorily acquired and hence the need to eventually move to the new development, Supply Chain City:

http://www.supplychaincity.com/

Sons who took over the business, and succeeded

Published on Mar 30, 2013

WITH a handshake from his father, Dr Robert Yap inherited his old man's transport business when he was in his 20s.

"I was joking when I told him that I'll take over the family business if he retires and let me do things my way," said Dr Yap, who turned 60 last year.

But his father, Mr Yap Chwee Hock, took his comment seriously and left his eldest son the family business in 1977.

After more than 30 years under Dr Yap's leadership, YCH Group has grown to become a leading supply chain and logistics firm in the Asia-Pacific region. It serves customers including Dell, Samsung, ExxonMobil and Unilever.

The second of nine siblings recounted his succession story at the launch of the Business Families Institute, or BFI@SMU, on Wednesday. The institute aims to help family-run businesses do better through shared experiences and resources.

His sister, Ms Catherine Yap, looks after the finances while operations are managed by one of his brothers, Mr Roger Yap.

Dr Yap has five children of his own and hopes that one of them will be interested in taking over the family enterprise.

"I want to give my children the freedom to do what they want, but deep in my heart I wish that my family members and children will be running the business," said the silver-haired yet youthful Dr Yap.

He likened the unwillingness to let go of the family business to F&N's sale of Asia Pacific Breweries, which makes Tiger Beer.

He said: "I felt the heartache when we sold off the national brand (Tiger Beer). It's like when you grow something and it's still competitive, you wouldn't want to sell it, right?"

Dr Yap hopes that BFI@SMU can offer business families advice so that they need not sell their enterprises because of the lack of a succession plan.

Another panellist was Dr Stephen Riady, executive chairman of Overseas United Enterprise.

He is the second son of Indonesian tycoon Mochtar Riady, who built a family empire which now develops hotels, resorts, malls and residential projects.

Taking a leaf out of his father's book, Dr Riady is putting his son through the same regimen he went through by working from the bottom up.

"Future generations of successors must learn to cope with the emotional challenges and develop a fighting spirit.

"A sales job is never easy. People will criticise you and say you are lousy.

"But you will get used to it and won't complain as easily when you join the family business," said Dr Riady to the 350-strong crowd at the Singapore Management University (SMU).

Another lesson he learnt from his father was to never leave any family members behind.

"Although my sisters are not directly involved in the family business... I will let them learn the ropes and seek opportunities within the company," he said.

Dr Riady added that he does not want his siblings to be "just a worker" after helping out in the family enterprise for 30 to 40 years.

He has since helped one of his younger sisters and her family start a coconut plantation business in Indonesia.

RACHEL SCULLY

If you google "supply chan city boustead", you will get this:link

Guess, who was there in the photo?
But then again, maybe the involvement is not significant?
Hence the order amount is not big enough to announce?
Erh but then maybe Mr. Wong does not always = Boustead?
It's anybody guess.
And my guess is as good (or bad) as yours.

(Vested and of course biased - although trying hard not to)

[greengiraffe]

Progress at OMH Sarawak:

http://asx.com.au/asxpdf/20130402/pdf/42...xtg22t.pdf

[Musicwhiz]

Boustead has just announced the divestment of their entire stake in OMH for A$0.37, recording a net gain of S$0.5m. I am surprised they managed to sell it at a premium to market in a married deal, but seeing how things have progressed at OMH, I am not surprised FF Wong wants to bail out.

Any comments would be appreciated, thanks.

[shanrui_91]

Progress at OMH Sarawak:

http://asx.com.au/asxpdf/20130402/pdf/42...xtg22t.pdf

http://info.sgx.com/webcoranncatth.nsf/V...1003504A7/$file/Boustead_Announcement-Boustead_Divests_Investment_in_OM_Holdings_Ltd-02.04.2013.pdf?openelement

This is the real progress at OMH, not bad that they can sell their stake at a premium in a married deal.

This will go down as another of Mr Wong's mistake and the difficulty he faced in employing the cash hoard. But I think it is commendable that he is willing to exit from it no matter whether the reason is due to their passive partnership or that he don't believe in the success of OMH, though I am inclined to believe that it is the latter.

(vested)

[Musicwhiz]

This is the real progress at OMH, not bad that they can sell their stake at a premium in a married deal.

This will go down as another of Mr Wong's mistake and the difficulty he faced in employing the cash hoard. But I think it is commendable that he is willing to exit from it no matter whether the reason is due to their passive partnership or that he don't believe in the success of OMH, though I am inclined to believe that it is the latter.

(vested)

Hi Shanrui,

Considering FF Wong gave so many interviews in the press where he expressed bullishness on OMH and his confidence in the project, I am also surprised that he can admit he made a "mistake" and will go ahead to divest. I guess this does show Boustead has strict risk controls in place to assess investments and whether or not they are delivering to date. I myself was very concerned about OMH when they made the announcement, and my discomfort has remained during the entire time they were vested. Now that Boustead has divested OMH, I can perhaps finally heave a sign of relief. To think that they managed to get out at a profit which will be booked in FY 2013 is also surprising, but it does show that FF Wong has good negotiation skills and is able to hammer out a good deal for Boustead.

[greengiraffe]

This is the real progress at OMH, not bad that they can sell their stake at a premium in a married deal.

This will go down as another of Mr Wong's mistake and the difficulty he faced in employing the cash hoard. But I think it is commendable that he is willing to exit from it no matter whether the reason is due to their passive partnership or that he don't believe in the success of OMH, though I am inclined to believe that it is the latter.

(vested)

Hi Shanrui,

Considering FF Wong gave so many interviews in the press where he expressed bullishness on OMH and his confidence in the project, I am also surprised that he can admit he made a "mistake" and will go ahead to divest. I guess this does show Boustead has strict risk controls in place to assess investments and whether or not they are delivering to date. I myself was very concerned about OMH when they made the announcement, and my discomfort has remained during the entire time they were vested. Now that Boustead has divested OMH, I can perhaps finally heave a sign of relief. To think that they managed to get out at a profit which will be booked in FY 2013 is also surprising, but it does show that FF Wong has good negotiation skills and is able to hammer out a good deal for Boustead.

Hi MW,

I totally agree with your analysis. I am happy they are off the hook.

Will wait for next better deal.

GG

[shanrui_91]

Interestingly, there is some shift in board of director together with the announcement on OMH. Is it more common for a shift in Board to happen during AGM?

http://info.sgx.com/webcoranncatth.nsf/V...10034A627/$file/Boustead_Announcement-Renewal_of_Boustead_Board_of_Directors-02.04.2013.pdf?openelement

I remember that Mr Wong was praising Mr Saiman Ernawan for his expertise and network in Indonesia at the last AGM. Now his relative or daughter (I assume so given the same surname) has taken over as a Non-Executive Director.

Interesting but not surprising that his son is now on the board of director. Not sure if he has resigned from his Non-Executive Director role in OMH. Is this a signal that a change in management will occur in the mid-term?

(vested)

[wozhaodaole]

told you guys that omh was a bad move.

OMH has just announced yesterday that they will be having a 3-for-10 rights issue of shares at A$0.40 per share to raise funds for the equity portion of their Sarawak Smelter Project.

Links:-
http://www.asx.com.au/asx/statistics/dis...d=01323410
http://www.asx.com.au/asx/statistics/dis...d=01323411

Boustead held 50m shares in OMH (8.6%) at a price of AUD 0.35/share prior to this rights offer.
Assuming full subscription, Boustead is entitled to 15m rights shares at AUD 0.40/share.

This will increase their total to 65m shares in OMH at a new (and higher) average price of AUD 0.362/share.

Looking at the presentation, the rights offer is NOT conditional on OMH obtaining bank financing for the project, so I am not particularly optimistic that this Sarawak project can take off smoothly without any bumps.

As to whether Boustead will take up the full entitlement, FF Wong has been very bullish on OMH so I think they will. It will cost Boustead an additional AUD 6 million (about SGD 7.86 million) to subscribe for their full entitlement.

For info, OMH goes Ex-rights on Aug 20, 2012 and is current trading at the rights price of AUD 0.40/share.

i can see where this is going. the ROI of the project is going down the drain while boustead is going to pump in more and more money.
just step back and ask why do you think even the banks do not want to finance such a venture?
im stunned they can't even get a loan as the malaysia banking landscape is extremely competitive and bankers are extremely desperate to make loans. and yet they can't get funding from the banks?
no wonder the stock is trading at such cheap valuations considering the kind of risk this company is engaging in.

let me quote what i said previously in the beginning of the year.

with this kind of management, im really not sure about their investment in OM Holdings, or what kind of crazy things they r going to do with the cash.
being in the investment industry in malaysia, i can say a lot of things are not what it seems, particularly in the east malaysia, and particularly when money is involved, and definitely when dealing with people in the steel or smelting or construction industry in malaysia! im appalled that he is even dealing with these people at all!