Boustead Singapore

[Art or Science]

Yup, as expected.. Acquisition from TEG not successful..

http://infopub.sgx.com/FileOpen/Boustead...eID=383712

[piggo]

Just received notice of election for scrip dividends at 0.785 per share today, but no information as to when's the closing date and time.

[thor666]

Just received notice of election for scrip dividends at 0.785 per share today, but no information as to when's the closing date and time.

Hi piggo, by 8 Jan 5pm (is on section b, pt2.)

Sent from my D5503 using Tapatalk

[GFG]

3Q/9M FY2016 Highlights:
• 3Q FY2016 revenue of S$142.3 million was 20% lower than 3Q FY2015. 9M FY2016 revenue of S$374.2 million was 14% lower than 9M FY2015.
• 3Q FY2016 net profit of S$7.5 million was 36% lower than 3Q FY2015. For comparative review, if net profit for 3Q FY2015 had been adjusted to take into account the demerger and other gains and losses, then 3Q FY2016 net profit would be 16% lower year-on-year.
• 9M FY2016 net profit of S$24.1 million was 47% lower than 9M FY2015. For comparative review, if net profit for 9M FY2015 had been adjusted to take into account the demerger and other gains and losses, then 9M FY2016 net profit would be 21% lower year-on-year.
• The Group’s order book backlog currently stands at S$343 million.

[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>

[GFG]

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>

[ksir]

I was curious to find out Boustead book without BP. The followings are some highlights:
1. Zero Debts
2. Cash & equivalent about S$147M or S$0.283 per share.
3. Financial Assets: S$42M or S$0.08 per share.
4. At Price of S$0.75, cash & financial assets equivalent to about 48% of market cap.

In hindsight, Mr Wong's resistance to acquire any assets in the past few years proved to be a really sound one.
Of course the question now is when the real deal will be (if ever)?

<vested>

[cyclone]

Mr Wong Yu Loon, son of Mr wong Fong Fui, appointed as Deputy Group Chief Executive Officer.
He has been with the group since 2003.

[ksir]

Mr Wong Yu Loon, son of Mr wong Fong Fui, appointed as Deputy Group Chief Executive Officer.
He has been with the group since 2003.

IIRC, he was (or still is) in charge of investment.
Boustead's investment track records of Japan Solar Investment (no news at all), OMH (sold at breakeven), Indo gas field (no deal) and probably some small acquisitions, doesn't sound impressive at all.

So i reckon this is just about passing the baton down to next gen?

<vested and not impressed by this>

[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.