Boustead Singapore

[ksir]

They didn't win the significant jtc land bid:
http://www.jtc.gov.sg/Sales-Rental/Gover...221113.pdf

The second lost for BP-Mandai.
To me though, it shows their conservativeness.

Although the land is definitely significant for their road to REIT.
Another note, see who was their partner in bidding? And if you do more homework, it will link to one big "giant" in China (for better or worse?).
The partner is linked to recently listed Viva REIT.

(Vested & Biased)
My message should be taken as pinch of salt.

[LionFlyer]

That's for the heads-up. I don't what this (Boustead's involvement with Mr Tong and Shanghai Summit Property Development) means though and it still does not explain the sudden rise. I will just wait and see tomorrow.

[ksir]

I did not intend to imply the relationship between share price fluctuation with that certain event (or mr tong in this case).

I was just stating the fact of the event (the failed bid).

To me the short term fluctuation on price (esp on the way up) is irrelevant.
The progress in business is what interest me.

It is quite unfortunate that I find this forum focusing lesser and lesser on the business (personal observation, ymmv).

Probably the discussion on the industrial d&b competition will be fascinating.
Eg: Soilbuild just won a d&b project in Seletar (which was a fertile land for BP).

[greengiraffe]

Boustead has highlighted the competitive environment in its core division. On its core Design and Build and Design, Build and Lease division, the landscape has become extremely competitive.

Only being nibble and selective will ensure the long term viability of any projects undertaken from here on.

On the recent share price strength, it is quite certain to be attributed to institutional buying. The daily and intra day trading pattern resembles that of algo trading. Even today's pre-close surge is likely to be one-off - maybe the completion of recent order according to preset parameters defined by the accumulator.

Hopefully, the buyer has not been overly euphoric over what they see in Boustead otherwise the risks of setback in share prices will be inevitable. Anyway enjoy the current strength and pray that it is not a fireworks display.

Vested
GG

I did not intend to imply the relationship between share price fluctuation with that certain event (or mr tong in this case).

I was just stating the fact of the event (the failed bid).

To me the short term fluctuation on price (esp on the way up) is irrelevant.
The progress in business is what interest me.

It is quite unfortunate that I find this forum focusing lesser and lesser on the business (personal observation, ymmv).

Probably the discussion on the industrial d&b competition will be fascinating.
Eg: Soilbuild just won a d&b project in Seletar (which was a fertile land for BP).

[greengiraffe]

http://www.msci.com/eqb/gimi/smallcap/MS...icList.pdf

There is a MSCI rebalancing at the close of market today.

Most of the stocks that were being added to the small cap index close at the day's high on very high volumes on pre-close.

As for Boustead, an insti dealer highlighted that Boustead's weightage in the small cap index could have increased due to recent strong price performance and hence also benefited from the day high closing.

Unless you are part of the institutional flow, it will be difficult to detect and benefit from the one-off event.

The thin liquidity in the overall market also exaggerated the movements.

[GPD]

Seems strange. They could easily buy off at $1.67. Don't think anyone will be so generous. Maybe someone input wrong parameters into the machine.

[lonewolf]

Boustead is having its retail investor day on 12 Dec and 13 Dec 2013. Details here

I wondered if its open to non-investor.

[palantir]

Boustead is having its retail investor day on 12 Dec and 13 Dec 2013. Details here

I wondered if its open to non-investor.

Thought non-investors can come on 12 Dec?

[ksir]

Good news - new DBL but dunno which project co (BP-EA or BP-TN) is linked and no mention of end client:

http://boustead.listedcompany.com/newsro...B6AA.1.pdf

Not that it would change anything, but I believe the end client is Tognum Asia Pte Ltd.

http://www.marinelink.com/news/groundbre...61393.aspx
http://www.4-traders.com/TOGNUM-AG-61949...-17492901/
More details on this, just for info.

[greengiraffe]

  boustead-standchart.pdf (Size: 472.23 KB / Downloads: 36)

Boustead, Standard Chartered maintained OUTPERFORM:

Potential upside from forming a REIT
 We reiterate our Outperform rating on Boustead Singapore
with a new price target of SGD 2.02 (SGD 1.26 previously),
which partially reflects the valuation upside of Boustead
spinning off its property portfolio into a REIT.
 If Boustead forms a REIT, it would boost our valuation by
4.7% to SGD 2.07/share. We incorporate half of this upside
potential in our final PT.
 We value Boustead using an SOTP methodology and our PT
translates into 16.2x 2015E PER. We estimate Boustead’s
net cash and property portfolio is worth SGD 393mn, or 43%
of its market cap.
 OUTPERFORM (unchanged)
Potential property spin-off. Boustead’s property portfolio
(including properties to be completed) now totals 163k sqm. In the
past, management said it would like to spin off the property
portfolio into a REIT when it reached 200-300k sqm. We believe
Boustead may accelerate this plan, as management indicated it is
open to acquiring existing properties (as opposed to expanding the
company’s portfolio via its design-build-and-lease solution), or
partnering with another company with an industrial property
portfolio to form a REIT.
Overall strong outlook for the company’s businesses.
Boustead’s energy engineering and design-and-build industrial
estate businesses are experiencing strong demand. We forecast
new orders for these segments to grow by a respective 53% and
27% YoY in FY14. Boustead’s energy engineering business is
experiencing robust demand in North America from new shale gas
and oil sands projects. Boustead’s chairman and CEO FF Wong
said he is bullish on industrial property in Iskandar, as he believes
many manufacturers and SMEs in Singapore could shift there,
leading to further projects for the company in both Iskandar and
Singapore.
Upside from a REIT. We partially factor in the valuation upside of
Boustead spinning off its property portfolio into a REIT (we take the
average of our base-case valuation and the valuation following a
property segment spin-off). We believe our assumptions are
prudent, as we value Boustead’s property portfolio using a net
property income margin of 70% and a cap rate of 7%.