Boustead Singapore

[Jon-san]

Just for info - Boustead should be releasing its 1H FY 2011 financial results at or around November 9, 2010 (Tuesday).

what's your own take on interim dividends? 1.5 cents again?

[Musicwhiz]

what's your own take on interim dividends? 1.5 cents again?

I'd expect them to maintain their 1.5 cents/share interim dividend. Of course, I am at the same time hoping for a pleasant surprise.....

[Musicwhiz]

The pleasant surprise came true! 2c per share interim dividend declared, up from 1.5c per share last year! The full article from BT will follow tomorrow.....here's a snippet of the "latest news".

Business Times - 09 Nov 2010

Boustead's Q2 net profit down 25%, higher interim dividend

By ANGELA TAN

Boustead Singapore Limited said on Tuesday that its net profit for the second quarter ended September 30, 2010 fell 25 per cent from a year ago to S$8.1 million.

The weaker earnings were due to the lower gross margins on one sizeable project secured amidst a highly competitive environment in 2009 and expenses for the expansion of two new overseas offices.

Revenue, however, grew 14 per cent from a year ago to S$130.6 million.

Its board has declared an interim cash dividend of 2.0 cents a share for 2Q FY2011, up from 1.5 cents a share declared and paid a year ago.

[Musicwhiz]

For info: There is a short and succinct write-up on Boustead in this week's issue of The Edge (week ended November 15, 2010). Basically, the main points from the article is as follows:-

1) Keith Chu mentioned that Boustead preferred to look at their results from a half-yearly and yearly perspective, instead of quarterly, as project revenues could be lumpy.

2) Some margins had to be sacrificed for the Seletar Aerospace Airport Contract, as it was clinched in 2009 amid strong competition. This project will carry on and still provide recognition in 3Q FY 2011, after which higher-margin projects will kick in.

3) Gross margins for FY 2011 are not going to be significantly lower than FY 2010.

4) The Group incurred substantial expenses to expand BIH's office into Malaysia, and they were considering extending BIH's presence into China as well.

5) Boustead also opened a new office in Darwin for ESRI, which explains the higher expenses incurred for 2Q FY 2011.

In spite of all this, cash generation remained strong and the Group could afford to pay an interim dividend of 2c/share, up from 1.5c/share last year.

[Musicwhiz]

Dear all, Part 1 of my analysis of review of Boustead's 1H FY 2011 results is now up on my blog. Please feel free to visit and leave comments for discussion purpose. Thanks!

A snippet as follows:-

"Gross margin actually improved year on year from 27.5% to 29.8%. 2Q 2011 saw higher expenses being incurred to expand BIH into Malaysia and China, and also for setting up a new office in Darwin for ESRI (Geo-Spatial). There was also a lack of contribution from share of results from associates. The good news was that admin expenses increased by just 16% due to Boustead's consistent focus on cost-cutting, while finance costs remained negligible at S$194,000."

[Nick]

DBSV issued a research report on Boustead today.

http://www.remisiers.org/cms_images/rese...d_DBSV.pdf

(Not Vested)

[mrEngineer]

excellent report from DBS vickers. Grins. Time to prepare more bullets

[Musicwhiz]

Excellent report too, since it gives one more chances to buy a good company at better prices.

For info, Part 2 of my analysis and review of Boustead's 1H FY 2011 Financials is now up on my blog. Please feel free to visit and leave comments, thanks!

[Nick]

BIO-TREAT TECHNOLOGY LIMITED AWARDED RMB500,000,000 CONTRACT FOR WATER TREATMENT PLANT IN HENAN

http://info.sgx.com/webcoranncatth.nsf/V...4002EB9FA/$file/Bio.Treat.contract.for.water.treatment.plant.in.Henan.pdf?openelement

Unless I am mistaken, I believe Boustead is considering an investment in Biotreat by investing in their convertible bonds.

[Musicwhiz]

BIO-TREAT TECHNOLOGY LIMITED AWARDED RMB500,000,000 CONTRACT FOR WATER TREATMENT PLANT IN HENAN

http://info.sgx.com/webcoranncatth.nsf/V...4002EB9FA/$file/Bio.Treat.contract.for.water.treatment.plant.in.Henan.pdf?openelement

Unless I am mistaken, I believe Boustead is considering an investment in Biotreat by investing in their convertible bonds.

That's been put on hold for now until Boustead finish their legal and financial due diligence. for Boustead's sake, I hope they don't take it up as I feel Bio-Treat probably has more problems than benefits, and may give them more headaches/sleepness nights than happy hours....