Boustead Singapore

[ksir]

Boustead owns (or used to own) 100m shares of Hankore.

I think they may have sold off the shares given its strong performance this year.

Should my guess turn out to be true, Boustead may be able to sustain their record performance yet again for the year just ended. In which case, dividends could well be sustained at 5 cents + 2 cents special.

Vested
GG

I didn't manage to catch Boustead divestment on Hankore. May be Boustead isn't a SSH, so no announcement on its divestment.

How do you confirm the divestment from Boustead side?

(not vested in Boustead and Hankore)

Boustead owns a 100m shares in Hankore at a historical costs of 4 cents. That was many years ago. The amount is never a substantial stake and hence will never be reported as a transaction.

I am merely guessing on Boustead's position from the point of view as a shareholder since Hankore share price has jumped substantially for the year.

We will see when Boustead releases its final results next month.

Vested
GG

When they invested in the Hankore, they did announce.
I do think they should announce when they divested as well.

In any case, percentage wise, the gain is great (more than 100%).
But, amount wise, it doesn't really significant.
1-2 cent at most?

[CityFarmer]

Boustead owns (or used to own) 100m shares of Hankore.

I think they may have sold off the shares given its strong performance this year.

Should my guess turn out to be true, Boustead may be able to sustain their record performance yet again for the year just ended. In which case, dividends could well be sustained at 5 cents + 2 cents special.

Vested
GG

I didn't manage to catch Boustead divestment on Hankore. May be Boustead isn't a SSH, so no announcement on its divestment.

How do you confirm the divestment from Boustead side?

(not vested in Boustead and Hankore)

Boustead owns a 100m shares in Hankore at a historical costs of 4 cents. That was many years ago. The amount is never a substantial stake and hence will never be reported as a transaction.

I am merely guessing on Boustead's position from the point of view as a shareholder since Hankore share price has jumped substantially for the year.

We will see when Boustead releases its final results next month.

Vested
GG

When they invested in the Hankore, they did announce.
I do think they should announce when they divested as well.

In any case, percentage wise, the gain is great (more than 100%).
But, amount wise, it doesn't really significant.
1-2 cent at most?

I doubt Mr. Wong from Boustead will make the divestment now, before the RTO is materialized.

Base on Hankore side, till mid 2013, Boustead still holding its stake with Hankore, base on AR 2013.

[greengiraffe]

http://infopub.sgx.com/FileOpen/Boustead...eID=295987

Moving another step closer to listing of Boustead-Crescendas REIT...

Could shareholders be getting a bonus at final results release for FY3/14 soon?

[greengiraffe]

Boustead Results Roundup by Analysts:

LIM & Tan:

Boustead Singapore ($1.875, up 2.0 cents) registered 4Q FY14
revenue of S$142.0 mln and net profi t of S$25.5 mln, a decrease of
3% and 8% respectively, compared to 4Q13. For the full year, revenue
of S$513.7 mln marginally pipped that of FY13 while net profi t of
S$70.7 mln was 13% below that of last year due to lower contributions
from the Real Estate Solutions Division and Geo-Spatial Technology
Division.
However, if we exclude the S$10.8 mln of non-recurring items in
FY14 (FY13: S$24.6 mln), the normalised core earnings would have
actually been 6% higher than that of FY13.
The Energy-Related Engineering Division provided the key growth
engine, which achieved record revenue of S$181.3 mln (+49%
yoy) underpinned by a robust recovery of the downstream oil & gas
business.
The group’s order book backlog currently stands at S$380 mln. With
a healthy net cash position of S$165.9 mln, ready access to bank
fi nancing and an S$500 mln multicurrency debt issuance programme
in place, management is looking to enter into more strategic alliances
and capitalise on new investment opportunities.
Boustead has also declared a fi nal dividend of 3 cents per share and
a special dividend of 2 cents per share. Together with the interim
dividend of 2 cents per share paid earlier, the total DPS of 7 cents for
FY14 is maintained at the same level as that for FY13.
With the share price outperformance YTD, we are downgrading
Boustead to Hold due to limited upside from current level. Nevertheless,
we think the stock should be quite well-supported by yield of 3.7%.

CIMB maintain ADD:

A year of stellar performance
At 112% of our full-year forecast, Boustead’s FY3/14 core earnings were above
our expectation, mainly due to strong results in its energy-related engineering
division. We raise FY15-17 core EPS estimates by 3.4-8.8% to reflect the
expanding margin and strong order book in its energy-related engineering
division. We keep our Add rating and raise our target price slightly from
S$1.97 to S$2.06, still based on a 10% discount to our FY3/15 SOP valuation.
Potential catalysts include strong demand for its energy-related engineering
products and a recovery in demand for the group’s geo-spatial solution.
FY14 results highlights
Reported profit of S$70.7m was the second highest in history. The
stellar results were only second to the S$81.4m in FY13. After adjusting for
non-recurring items, the group’s FY14 core PATMI was 5.5% higher than FY13.
Weakness in real estate offset by stronger energy division. PBT for its
real estate division fell by 36% to S$39.4m (FY13: S$61.2m) due to slower
contract wins. PBT for its energy division expanded by 81% to S$24.8m (FY13:
S$13.7m), driven by a strong order book and expanding margins.
Geo-spatial impacted by weak A$ and AU presidential election. PBT
for its geo-spatial division was down 15% to S$25.2m (FY13: S$29.7m).
FY15 outlook
A healthy order book of S$380m underpins FY15 outlook. We expect
strong demand for its energy engineering products from the continued O&G
investment given the robust oil price at above US$100/barrel. The real estate
division is likely to remain lacklustre due to the downcycle of industrial
property investment as well as squeezed margins from rising labour costs. The
geo-spatial division is expected to resume high single-digit growth, driven by
the recovering Australian demand and increasing utilisation of Geo-spatial
technology in ASEAN region. Overall, we expect a flat to mild growth in FY15.
We maintain an Add with a higher target price of S$2.06
In addition to potential capital gains, management has proposed a total cash
dividend of 7 Scts for FY14 (5 Scts ordinary, 2 Scts special), which translates
into a 3.7% dividend yield. Boustead remains in a net cash position of S$166m.

[mkmk]

I'll add UOBKH's analysis:

FY14 Results In Line; Energy’s Momentum To Carry Over To FY15

VALUATION
- Maintain HOLD and target price of S$2.00. We value Boustead Singapore (Boustead) using a SOTP model and at 16.6x FY15F PE (ex-cash 14.1x). We like its high net cash position of S$166m (32 cents/share) and project a dividend of 5 S cents/share for FY15, which translates to a yield of 2.7%. Entry price is S$1.74.

INVESTMENT HIGHLIGHTS
- FY14 adjusted net profit of S$60m, up 6% yoy despite revenue being flat at S$514m. The energy division (+49% yoy) led in top-line growth on the back of a recovery in O&G. Real estate (-17%) saw a fall in revenue amid a more competitive operating environment and as the group continued with its re-strategisation towards more investment vs development projects. Geo-spatial (-7%) was affected by the Australian elections in 1HFY14 and a weak Australian dollar. Water (-35%) continued to struggle from intense competition.

- Energy leading the way with a higher PBT margin of 14% in FY14 vs 11% in FY13. This was driven by an improvement of margins in major projects, on the back of a recovery in the O&G sector. Although the other divisions suffered some impact on their margins, the group still managed to achieve an overall PBT margin of 15% in FY14 vs 14% in FY13. Boustead secured a record S$421m worth of new orders.

- 7 cent full-year dividend translates to a 50% payout. This includes a proposed 2 cent special dividend. The group generated operating cash flow of S$101m in FY14, which was mainly redeployed as capital investment in their four ongoing design-build-lease projects.

- S$380m orderbook backlog is comprised of energy (S$152m), real estate (S$174m) and water (S$54m) projects. We expect the energy division to continue its momentum in FY15 with projects from Northern Europe generating good margins. With the industrial property environment in Singapore turning more competitive lately, management is considering expanding to the nearby countries of Malaysia and Indonesia. It is also still considering options for unlocking the value of its investment properties, including potential collaborations with third parties to build a sizeable enough portfolio for a REIT.

- Geo-spatial to recover in FY15 and we assume a 7% growth for this division. Potential upside could come from a deeper penetration into Indonesia and Malaysia, which are relatively underdeveloped as compared to Singapore and Australia. While margins may be impacted slightly in the near term as the group grows its workforce, we view demand in this segment to be sustainable backed by government entities.

- Potential catalysts include a) contract wins, b) regional expansion, c) earnings accretive M&As, and d) a spin-off of its industrial assets into a REIT.

(not vested)

[Contrarian]

The business deals in some divisions are facing headwinds...

The company has had a good lead for 10 years.

[ksir]

I am curious, accounting wise, how to split the gain in 2 different FY?
I take it as sold half before 31 Mar 2014?

I guess it depends on how the asset is held on the balance sheet. If it is 'available for sale' asset, then it should be marked to market every quarterly. So the gain is recognized in income statement and balance sheet, but not in cash flow statement.

*did not look at Boustead financial reports and just making a guess.

moved to Boustead's post, in order not to hijack Hankore.

Yeah I agree that is a possibility of that as well.
But if my memory doesn't fail me, Boustead don't recognize the paper gain (loss was impaired) in Income Statement.
Further check, I notice this in 2014Q4 statement:
Gain on disposal of available-for-sale investments=> $4.072M.

As such, I assume, it is partially sold before 31 Mar 2014.
Below is pure speculation:
Sold 50M shares at $0.12 for $6M.
Cost at price $0.04 (total cost: $2M)
Gain is about $4M.

[jaykay]

http://www.ura.gov.sg/uol/media-room/new...14-43.aspx

Esri and URA forge path towards smarter urban planning using 3D technology
Published Date: 15 Jul 2014

The Urban Redevelopment Authority and Esri are working jointly on the enhancement of an advanced urban planning 3D tool, Esri CityEngine, which transforms 2D town planning data into interactive 3D city models.

By customising the Esri CityEngine platform to Singapore’s urban context, Esri and URA are developing a smart 3D mapping tool incorporating various planning and urban design rules to enable urban planners to carry out large scale simulations more efficiently. This was the goal of URA’s Memorandum of Understanding with Esri Inc. and Esri Singapore inked in November 2013.

The Esri CityEngine platform currently allows planners to simulate different building forms and visualise their impact to the surrounding environment. For instance, planners can conduct shadow studies on proposed developments to determine how public spaces can be shaded for better comfort.

The URA gave a demonstration of how URA carries out urban planning and design using this smart 3D tool at the Esri International User Conference held in San Diego yesterday attended by over 15,000 geospatial professionals.

URA’s Director of Information Systems, Applications, Goh Siow Chong said, “As the land use planning authority of Singapore, URA constantly seeks new ideas, innovative technologies and smart solutions to make better planning decisions and overcome challenges.”

“Our collaboration with Esri Inc. and Esri Singapore is a fruitful experience. Esri brings on board their expertise in advanced 3D geospatial technology, enabling us to create 3D simulations of various planning scenarios to better plan for a more liveable and inclusive environment.”

Esri Singapore Chief Executive Officer Thomas Pramotedham said using GIS technology to enable a greater understanding of future developments is key to ensuring Singapore remains one of Asia’s most dynamic urban centres.

“As one of the world’s fastest growing cities, it is important that Singapore leverages smart technologies to ensure ongoing developments can meet the needs of citizens now and in the future,” said Mr Pramotedham.

“URA’s approach to using 3D GIS technology is incredibly progressive, and serves as a benchmark and inspiration for other countries around the world.”

“The fact the URA was invited to deliver a presentation to more than 15,000 of the world’s leading GIS professionals is testament to the outstanding and industry-leading work they are achieving in this field.”

URA and Esri will continue to develop the software’s localised rules and building templates to build up the 3D model base, overlay rich GIS layers and over time, create a rich 3D city information model that could be useful for multiple purposes beyond urban planning.


Issued By Esri Singapore, Urban Redevelopment Authority

[greengiraffe]

http://infopub.sgx.com/FileOpen/Boustead...eID=309625

For 1Q FY2015, the Group registered revenue of S$126.5 million and profit attributable
to equity holders of the company (“net profit”) of S$16.1 million, declining 2% and 9%
respectively, compared to 1Q FY2014. After adjusting for other gains (non-recurring
items), net profit for 1Q FY2015 would be 29% higher than 1Q FY2014.

The Energy-Related Engineering Division achieved revenue of S$41.5 million, rising 9%.
Revenue growth was driven by the downstream oil & gas business, which continued to
execute on a healthy pipeline of major projects carried through from FY2014.
The Real Estate Solutions Division delivered revenue of S$56.4 million, declining 11%.
Revenue was impacted by the challenging business environment and the division’s
ongoing strategy to expand the industrial leasehold portfolio, which will increase future
recurring rental income.
The Geo-Spatial Technology Division attained revenue of S$28.6 million, up 4%. The
improved performance was supported by the recovery in Australia and stronger demand
in South East Asia.
After adjusting for other gains, all three operating divisions achieved profit growth.
Mr Wong Fong Fui, Chairman and Group Chief Executive Officer of Boustead said,
“Adjusting for non-recurring items, we delivered an improved performance. Business
conditions within certain sectors continue to remain challenging but we believe that we
can deliver a reasonable level of profit in FY2015.”

[greengiraffe]

Wah... Middle Eastern Sovereign Wealth Fund...

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

1. Introduction
Boustead Singapore Limited (“Boustead”) is pleased to announce that its whollyowned
subsidiary, Boustead Projects Pte Ltd (“Boustead Projects”) – a leading
specialist in industrial real estate solutions – has established the Boustead
Development Partnership (“BDP”), a co-investment partnership between
Boustead Projects and the Abu Dhabi Investment Council. The parties will
contribute a combined S$250 million of equity to the BDP which, with leverage, is
expected to allow for an initial investment target in excess of S$600 million.
The BDP has a strategy to develop and redevelop modern logistics and high
quality industrial facilities in Singapore.
2. Boustead Development Partnership
Pursuant to the terms of the relevant BDP agreements as executed, the summary
details of the BDP are as follows.
Both partners in the BDP have each committed equity of S$125 million to the BDP,
providing a combined S$250 million of equity.
The BDP is proposed as the investor for Boustead Projects’ future design-buildand-
lease projects, development projects and redevelopment projects in the
industrial property market in Singapore that meet the BDP’s specified investment
requirements.
Boustead Projects will be the design-and-build partner for the BDP’s pipeline of
projects and Boustead Funds Management Pte Ltd (“Boustead Funds
Management”) will be the Investment Manager to the BDP, providing
development and asset management services respectively to the BDP. Boustead
Property Services Pte Ltd (“Boustead Property Services”) is also proposed as the
Property Manager, providing property management services to the BDP.

The BDP leverages from Boustead Projects’ in-depth domain expertise in designbuild-
and-lease and development projects and strong network within Singapore.
Concurrently, the BDP will allow Boustead Projects to significantly enhance the
real estate solutions that it can offer to potential end-user clients, and expand
Boustead Projects’ capacity to offer new high quality industrial facilities to
multinational corporations and local enterprises looking to grow in Singapore.
The BDP will bolster Boustead Projects’ capabilities in financing a significantly
larger pipeline of design-build-and-lease projects, development projects and
redevelopment projects, particularly for larger scale projects with higher capital
requirements. Furthermore, the BDP may also support further strategic real
estate objectives which Boustead may undertake.
For their respective roles in the BDP, Boustead Projects, Boustead Funds
Management and Boustead Property Services will earn asset management,
development, project management and property services fees from the BDP.