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Boustead Singapore
07-08-2019, 11:49 AM.
Post: #1241
RE: Boustead Singapore
(03-08-2019, 07:11 PM)Bibi Wrote: We knew that Boustead Prjs used to be a subsidary of Boustead. Boustead spawned it off but still withheld 51%+ of Boustead Prj.

May I ask, when calculating Boustead's equity, eps, pb or pe, should one include the contributions from Boustead Prjs? If not, why is that the case? Its PB based on current price if I include Boustead Prj is 0.75, excluding it is 1.07. Its a big difference in my investing decision.

hi Bibi,
Based on accounting principles, since Boustead owns >50% of BP, Boustead is allowed to consolidate the full results of BP into its own result. This simply means that Boustead can present 100% of BP's results as its own but it doesn't mean it really owns it. Take for example (using durians) - I own 60 trees in this 100-tree orchard and but i decide to show off to my gf. So i bring her to the orchard and what she sees is the entire orchard of 100 trees, but effectively, only 60 of them is mine. When it is time to pick durians that fall down, i can only pick from those 60 trees.

So to answer your question - the minority interest on the balance sheet and P/L needs to be stripped off "non-controlling interests" to reflect the actual picture of what it is worth. The P/B of 1.07 is a closer reflection of the truth to Boustead's valuation by Mr Market.

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07-08-2019, 12:20 PM.
Post: #1242
RE: Boustead Singapore
Thank you angelzsoul and weijian for your reply. Appreciate it.

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09-08-2019, 09:29 AM. (This post was last modified: 09-08-2019, 09:29 AM by beefjerky.)
Post: #1243
RE: Boustead Singapore
(06-08-2019, 09:55 PM)Bibi Wrote:

1) Wong FF thinks the o&g downturn will last longer. Renewables will slowly reduce demand for oil.  
2) ESRI USA changed renewable terms from 7 years to 3 years.

I am not sure whether this 2 pieces of not so good news causes it to drop. Fidelity funds have been selling for past few days. I think their patience are wearing out. Its been 4 years and Boustead is going nowhere.
Thanks for the reply, appreciate it. Cannot say for certain its going nowhere as I do start to see order books and revenue from individual functions increasing. But its fair to say that due to bad sentiments, the price is suppressed.

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