Boustead Singapore

[weijian]

how do you even get PE 4.4x? strange calculation again.

It is probably coming from the fact that EV (enterprise value) is used giving 66cents/share and then with a derived EPS of 15cents, it becomes P/E=4.4.

In recent privatizations, IFAs have already demonstrated big differences in their valuation methodologies and end results. Therefore, I believe it shouldn't come at a surprise that individuals, with expected higher variation, will demonstrate higher differences in our own valuation methodologies/end results.

Forumer Bibi has already pointed out 1 potential flaw - using EV (which takes away the cash) in the "price" numerator but probably includes the interest income in the "earnings" denominator.

In addition, I think it is pretty risky to assume that 1 dollar under my grandma's account is the same as 1 dollar under my account.

YMMV

[jaco]

Boustead announcement related to the real estate fund: https://boustead.sg/sites/boustead.sg/fi...e-Fund.pdf  (opens PDF)

Frankly, I do not understand what the purpose of the transactions is. It seems like some reordering to remain in compliance with JTC requirements in anticipation of larger changes in the future.

In any case, it looks like the phase of reviews and consideration of options has passed.... It's happening!

[Bibi]

If any folk think Boustead is overvalued, they could always cash out now at $1.40 — haha.

Just like the folks who sold iFAST at $1.50… only to watch it climb all the way to $10 — haha.

I would think Boustead is slightly above fair value. It is overvalued if based on past 5 years historical data since Spore stocks has always been trading below valuation. iFast is different. Its non one off profit growth was in excess of more than 100%. Boustead is a mere 10+% growth for non one off profit growth with negative revenue growth. 

iFast did correct from a high of $10 to a low of $3 too right?

For disclosure, I have fully sold off my cpf holdings and 5% of my cash holdings. I will keep selling slowly above this level.

[LionFlyer]

this is my own GPT generated answer. with GPT easy to get different answers, depending on what prompt and what valuation methods. but YMMV and investing, we each act on our own convictions.

📊 Boustead Singapore: SOTP with Net Cash
1. Segment Valuations (Estimates based on recent analyst models):
Segment Valuation Approach Estimated Value (S$)
Energy Engineering P/E ~10× earnings ~S$140M
Real Estate Solutions P/B ~1.0× NAV ~S$220M (Boustead Projects stake)
Geospatial Tech P/E ~14× earnings ~S$220M
Healthcare Often nil or minimal ~S$0–10M

➕ Add: Net Cash (as of latest)
Boustead had ~S$374 million in cash/short-term investments

With total borrowings around S$26 million, net cash ≈ S$348 million

🧮 Net Cash = Cash - Debt = 374M - 26M = 348M

📌 Intrinsic Equity Value (SOTP)
Component Value (S$ million)
Operating Segments ~580M
Net Cash +348M
Total Equity 928M

🧾 Intrinsic Value per Share
Shares outstanding: ~471 million

Intrinsic Value per Share = 928M / 471M ≈ S$1.97

[Curiousparty]

Before Boustead Projects (BP) was privatized, the market had already valued its assets at around S$600 million, implying a RNAV of at least S$2 per share (310 million shares × S$2 ≈ S$600 million). This valuation excludes the Como hotel and all the new developments that followed—so BP alone was already worth that much before factoring in any upside.

Despite recent share price movements, a closer examination of Boustead’s business segments reveals a compelling valuation story grounded in tangible fundamentals. By aggregating the net asset values of its core businesses and its strong balance sheet, Boustead’s gross RNAV (Revalued Net Asset Value) is estimated at S$1.88 billion—significantly higher than its current market capitalization.

Here’s how the value stacks up:

🏢 Boustead Projects (S$664M)
Anchored in industrial real estate and design-and-build (D&B) services, Boustead holds a 99% stake in this segment. With steady rental income and a strong track record in industrial parks, this remains a core earnings driver.

🌍 Geo-Spatial (S$662M)
Valued at 15× EBIT based on S$50M in earnings, this division provides GIS solutions to government agencies. Boustead owns 88.2%, making it a high-quality, recurring revenue business with defensive characteristics.

⛽ Energy Engineering (S$222M)
Supporting oil & gas recovery and energy infrastructure, this division is valued at 8× EBIT. Boustead’s 98.9% stake contributes significantly to earnings despite the sector’s cyclicality.

🏥 Healthcare (S$12M)
Although still small, this 100%-owned segment is valued at 1× sales and represents a growth option as Boustead expands into adjacent sectors.

💰 Parent Net Cash (S$320M)
Boustead’s strong balance sheet is further reinforced by over S$300 million in net cash—providing firepower for acquisitions or shareholder returns.

Adding it all up, the gross RNAV amounts to S$1.88 billion. With 500 million shares outstanding, this translates into a gross RNAV per share of S$3.76—well above the current trading price. This suggests substantial hidden value in Boustead’s diversified business model and prudent capital management.

In essence, Boustead offers more than meets the eye—anchored in stable cash flows, strategic sector exposure, and an undervalued asset base.

just need to be patient, we shall see >$2 ahead...dydd..

[Curiousparty]

If any folk think Boustead is overvalued, they could always cash out now at $1.40 — haha.

Just like the folks who sold iFAST at $1.50… only to watch it climb all the way to $10 — haha.

I would think Boustead is slightly above fair value. It is overvalued if based on past 5 years historical data since Spore stocks has always been trading below valuation. iFast is different. Its non one off profit growth was in excess of more than 100%. Boustead is a mere 10+% growth for non one off profit growth with negative revenue growth. 

iFast did correct from a high of $10 to a low of $3 too right?

For disclosure, I have fully sold off my cpf holdings and 5% of my cash holdings. I will keep selling slowly above this level.

iFast will surely cross $10 later on... just need to be patient...
I have said enough about the potential of iFast in the other thread on iFast...

[Curiousparty]

look at the geo spatial segment recurring income. it alone can already support dvd of close to 10 cents!

[weijian]

If any folk think Boustead is overvalued, they could always cash out now at $1.40 — haha.

Just like the folks who sold iFAST at $1.50… only to watch it climb all the way to $10 — haha.

hi Curiousparty,

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