Boustead Singapore

[greengiraffe]

The latest analyst coverage by Phillips is quite impressive. I would say that either the analyst has put in extraordinary efforts to research Boustead or the company may have started to adopt a different approach to engage the investment community.

Anyway, post the retail investor day, the transparency of Boustead has taken a new dimension. However, without consistent contract wins, even a good story teller will face a hard time to cook up new lines.

Vested

[Musicwhiz]

The latest analyst coverage by Phillips is quite impressive. I would say that either the analyst has put in extraordinary efforts to research Boustead or the company may have started to adopt a different approach to engage the investment community.

Anyway, post the retail investor day, the transparency of Boustead has taken a new dimension. However, without consistent contract wins, even a good story teller will face a hard time to cook up new lines.

Vested

Yes, a very decent effort indeed. It was quite an enjoyable read.

Though I must question where the analysts' assumptions came from and also how he modelled the DCF. Interesting that most use a SOTP valuation but this analyst chose to use DCF. Considering Boustead's revenues/earnings and hence cash flows are lumpy, I wonder how they smoothed out the fluctuations? Also, an order-book type business like Boustead Projects D&B, Oil and Gas and Salcon are also tough to project. Only Geo-Spatial is easy just use 10%-15% growth into perpetuity.

So I would still take the DCF and resultant TP with a huge dose of salt.

Good info on all the divisions, though

[greengiraffe]

breakaway gap covered... life goes on... price pattern will have to wait for new directions...

[greengiraffe]

http://info.sgx.com/webcoranncatth.nsf/V...E003088DB/$file/Boustead_Announcement-Boustead_Subsidiary_Awarded_Multi-Million_Dollar_Contract_for_Condensate_Polishing_Plant_at_Ultra_Supercritical_Coal-Fired_Thermal_Power_Plant_in_Taiwan-26.02.2013.pdf?openelement

With the latest announcement, the water division is likely to break even for the year - management previously indicated that the division needs $30m to breakeven.

So much for a historically problematic division.

[valuestalker]

http://info.sgx.com/webcoranncatth.nsf/V...E003088DB/$file/Boustead_Announcement-Boustead_Subsidiary_Awarded_Multi-Million_Dollar_Contract_for_Condensate_Polishing_Plant_at_Ultra_Supercritical_Coal-Fired_Thermal_Power_Plant_in_Taiwan-26.02.2013.pdf?openelement

With the latest announcement, the water division is likely to break even for the year - management previously indicated that the division needs $30m to breakeven.

So much for a historically problematic division.

I find this interesting:
From Salcon's announcement (26 Feb 13):
The latest contract has raised the Boustead Group’s order book backlog (as at the end of December 2012 plus new orders since then) to S$355 million.

From BP's Schenker announcement (6 Feb 13):
The latest contract has raised the Boustead Group’s order book backlog (as at the end of September 2012 plus new orders since then) to S$422 million.

Revenue recognized in Q3 (Sep to Dec 12) for engineering division: S$114.5 M

Order won after 6 Feb 13: 355 - (422-114.5) = S$47.5M

And:
Over S$30 million of water contracts secured by division in FY2013.
(including: Semb Corp project)
Let's say this order is about $15M.
Another $30M won during 6-20 Feb 13?

Did I miss out anything?

[greengiraffe]

http://info.sgx.com/webcoranncatth.nsf/V...E003088DB/$file/Boustead_Announcement-Boustead_Subsidiary_Awarded_Multi-Million_Dollar_Contract_for_Condensate_Polishing_Plant_at_Ultra_Supercritical_Coal-Fired_Thermal_Power_Plant_in_Taiwan-26.02.2013.pdf?openelement

With the latest announcement, the water division is likely to break even for the year - management previously indicated that the division needs $30m to breakeven.

So much for a historically problematic division.

I find this interesting:
From Salcon's announcement (26 Feb 13):
The latest contract has raised the Boustead Group’s order book backlog (as at the end of December 2012 plus new orders since then) to S$355 million.

From BP's Schenker announcement (6 Feb 13):
The latest contract has raised the Boustead Group’s order book backlog (as at the end of September 2012 plus new orders since then) to S$422 million.

Revenue recognized in Q3 (Sep to Dec 12) for engineering division: S$114.5 M

Order won after 6 Feb 13: 355 - (422-114.5) = S$47.5M

And:
Over S$30 million of water contracts secured by division in FY2013.
(including: Semb Corp project)
Let's say this order is about $15M.
Another $30M won during 6-20 Feb 13?

Did I miss out anything?

 Over S$30 million of water contracts secured by division in FY2013 - basically means they secured S$30m in FY2013. However they did not tell you how much they have booked.

Anyway, don't worry about the booking. More importantly its the flow that is coming.

Hopefully the yet to be disclosed project - supply chain city that you have previously mentioned on the forum can help lift Boustead's project win soon.

S$200m worth of 0.5m sf office and 1.5m sf warehouse space. Even a small cut will help build up order books.

[valuestalker]

http://info.sgx.com/webcoranncatth.nsf/V...E003088DB/$file/Boustead_Announcement-Boustead_Subsidiary_Awarded_Multi-Million_Dollar_Contract_for_Condensate_Polishing_Plant_at_Ultra_Supercritical_Coal-Fired_Thermal_Power_Plant_in_Taiwan-26.02.2013.pdf?openelement

With the latest announcement, the water division is likely to break even for the year - management previously indicated that the division needs $30m to breakeven.

So much for a historically problematic division.

I find this interesting:
From Salcon's announcement (26 Feb 13):
The latest contract has raised the Boustead Group’s order book backlog (as at the end of December 2012 plus new orders since then) to S$355 million.

From BP's Schenker announcement (6 Feb 13):
The latest contract has raised the Boustead Group’s order book backlog (as at the end of September 2012 plus new orders since then) to S$422 million.

Revenue recognized in Q3 (Sep to Dec 12) for engineering division: S$114.5 M

Order won after 6 Feb 13: 355 - (422-114.5) = S$47.5M

And:
Over S$30 million of water contracts secured by division in FY2013.
(including: Semb Corp project)
Let's say this order is about $15M.
Another $30M won during 6-20 Feb 13?

Did I miss out anything?

 Over S$30 million of water contracts secured by division in FY2013 - basically means they secured S$30m in FY2013. However they did not tell you how much they have booked.

Anyway, don't worry about the booking. More importantly its the flow that is coming.

Hopefully the yet to be disclosed project - supply chain city that you have previously mentioned on the forum can help lift Boustead's project win soon.

S$200m worth of 0.5m sf office and 1.5m sf warehouse space. Even a small cut will help build up order books.

Salcon's projects secured in FY2013 were Semb Corp & Taiwan Power.
Let's say 15M each.
Then there should be about $30M secured between 6-20 Feb 13 and not announced?

I am not worry about the precise order amount won (a good problem to worry anyway).
Just curious of the unannounced orders.

I put my expectation very low in regard of Supply Chain City.

[greengiraffe]

FY12 results from the forgotten investment, OMH. Last done A$0.335 well off lows of $0.20 last year.

http://asx.com.au/asxpdf/20130228/pdf/42...79nylc.pdf

[greengiraffe]

http://boustead.listedcompany.com/newsro...224C.1.pdf

Is this good news? Buddies input deeply appreciated.

So far it seems like not a big risks. Definitely not greenfield:

http://www.kyushu.meti.go.jp/seisaku/kok...zentai.pdf

http://cleantechnica.com/2012/10/23/81-5...n-by-2014/

http://www.orix.co.jp/grp/en/news/2012/1...RIXE1.html

http://global.kyocera.com/news/2012/0706_ssll.html

http://factsanddetails.com/japan.php?ite...bcatid=152

http://www.skysolargroup.com/MediaCenter...55/92.html

http://www.nippontradings.com/japan-real...rgy-mecca/

http://online.wsj.com/article/SB10001424...82630.html

http://www.solarnovus.com/index.php?opti...Itemid=242

Vested

[Musicwhiz]

No comment on this yet as it is still early stages. It depends on their IRR target and their capital commitment for the project. Guaranteed off-take is one thing, but cost structure is another. Insufficient details were given for me to conclude on the attractiveness of the project.

The Straits Times
www.straitstimes.com
Published on Mar 16, 2013
Boustead enters into solar power joint venture

By Jonathan Kwok

A WHOLLY owned subsidiary of Boustead Singapore yesterday entered into a Japan solar power joint venture.

The joint-venture partner is Kinnarii Power Assets, a Singapore-based renewable project developer which focuses on the region.

Boustead, an engineering and technology company, will hold 50 per cent plus one share in the joint- venture vehicle Kinnon Green, which will develop utility-scale solar photovoltaic projects in Japan.

Kinnon Green owns the rights to a 20 megawatt (MW) solar photovoltaic power generation portfolio in Kyushu, Japan.

Half of the portfolio, or 10 MW of power generation facilities, has been awarded a final interconnection agreement from Kyushu Electric, the regional power grid operator.

Boustead's statement said it expects the other half of the portfolio to attain an agreement by the end of this month.

The power facilities will be developed in stages, and the total implementation cost is estimated at around $75 million and will be financed by a mixture of equity and long-term bank loans.

The announcement yesterday was made after markets closed. Boustead's shares lost one cent to $1.40 during the trading session.

Boustead has announced several contracts this year. Late last month, it said that a unit has won a contract to build a condensate polishing plant to produce high-grade boiler feedwater for a thermal power plant in Taiwan. The water and wastewater engineering division has won over $30 million of water contracts in the current financial year.

jonkwok@sph.com.sg