Boustead

[Musicwhiz]

Dear all, I have posted Part 2 of Boustead's recent EGM highlights on my blog. Please feel free to visit and leave comments, thanks!

A snippet as follows:-

"When asked about the value of the industrial leasehold properties within Boustead’s stable, FF Wong gave a candid assessment, stating a market value of about S$160 million. After netting off the associated loans relating to these properties, one would still end up with about S$120 million worth of cash. Add this to the current S$200 million net cash and you would end up with a net cash balance of close to S$320 million, which is close to almost 80% of the current market capitalization of $410 million (above) purely in cash."

[winston]

not vested

Boustead Singapore, which provides engineering services and develops industrial facilities, said its unit has won a S$57 million contract to design and build a manufacturing, technology and office facility for a wholly-owned subsidiary of Singapore Technologies Electronics Ltd.

Source: Reuters

[Musicwhiz]

Business Times - 02 Nov 2011

Boustead unit clinches $57m contract

Boustead Projects to build integrated facility for ST Electronics unit

By MICHELLE TAN

A SUBSIDIARY of Boustead Singapore has bagged a $57 million contract to design and build a facility for ST Electronics (Info-Software Systems) Pte Ltd.

A specialist in industrial real estate solutions, Boustead Projects is to construct a seven-storey integrated facility comprising manufacturing, technology and office functions at Ang Mo Kio Industrial Park for the unit of ST Electronics, the electronics arm of ST Engineering.

Slated to be ready in the first half of 2013, the new building will add 50,000 square metres of space to ST Electronics' existing facilities in Ang Mo Kio and also serve to consolidate the group's staff in a single location as opposed to being located in several rented premises across the island.

In addition, the new building has been earmarked to be Green Mark Gold certified. As such, several intelligent systems and a number of energy saving solutions will be installed in the facility.

Boustead Projects managing director Thomas Chu said: 'We will work towards delivering a world-class facility to ST Electronics that integrates their various business functions into a single centre of excellence.'

This latest contract win extends the group's three-month winning streak. Boustead Projects has secured projects totalling $90 million from names such as Greenpac, Kerry Logistics, Shinko Plantech and a Fortune 100 transnational healthcare and pharmaceutical corporation.

Cumulatively, since the onset of financial year 2012, Boustead Projects has garnered more than $173 million in new contracts and the group's order book currently hovers around $380 million.

Yesterday, the stock closed 1.5 cents or 1.8 per cent lower at 81 cents.

[Musicwhiz]

Dear all, Part 1 of Boustead's 1H FY 2012 Analysis and Review is now up on my blog. Please feel free to visit and leave comments, thanks!

A snippet as follows:-

"Boustead’s Balance Sheet displays some changes since 6 months ago (March 31, 2011), and the focus now would be to comment on these changes and how they will impact the Group moving forward. For current assets, cash has fallen by about $17 million (more on this later), while trade receivables has seen a large drop of $30 million, offset by an increase in other receivables and prepayments of $9 million. The most significant increase, however, is that of investment properties under non-current assets – it had increased from $13.5 million to $41.4 million in just six months. Obviously, a lot of progress had been made on the construction of Boustead’s industrial leasehold properties and this was reflected in the increased capitalization as witnessed on the Balance Sheet. AFS investments also increased as part of Boustead’s Cash Management program, which involves the purchase of short-term blue-chip bonds with yields higher than bank fixed deposits."

[kennynah]

MW : would you consider starting a talk about your investments? you have been blogging for years now... instead of writing it, say it to an audience...and of cos, charge a fee...

what you think?

[Musicwhiz]

MW : would you consider starting a talk about your investments? you have been blogging for years now... instead of writing it, say it to an audience...and of cos, charge a fee...

what you think?

Hi Kenny,

Erm......well I hadn't actually thought about it. Haha my view is - who would want to listen to me talk about my investments, how I screen for companies etc? I feel it would not be worth much, and certainly would not be "valuable" enough to charge a fee.

But of course, if you feel there is potential, I am open to ideas.

[Musicwhiz]

Dear all, Part 2 of Boustead's 1H FY 2012 Analysis and Review is now up on my blog. Please feel free to visit and leave comments, thanks!

A snippet as follows:-

"Engineering Services as a whole saw a significant decrease in revenue for 1H 2012, down 53.5% to just $128.5 million from $276.2 million. This can be largely attributed to the drop in revenues in the real estate solutions division which saw a 73% year on year fall in revenue to $50.9 million (but 1H 2011’s numbers included the disposal of an industrial property worth $67.8 million). With Boustead’s focus being more on DB&L projects in order to build up their portfolio of recurring rental income, there has thus been less D&B contracts awarded. This, coupled with the slowdown in 1H 2012 also meant that there was less revenue to recognize for the division. However, my view is that Boustead’s Real Estate Division would serve as a buffer for the Group should the Euro Zone collapse, and also help them to generate steady and predictable cash flows during uncertain times. Since most (if not all) of their clients are blue-chip companies, there is also a lower risk of non-payment or default unless a major crisis occurs within the specific niche industries that each client is in."

[Musicwhiz]

Dear all, Part 3 of Boustead's 1H FY 2012 Analysis and Review is now up on my blog. Please feel free to visit and leave comments, thanks!

A snippet as follows:-

"The remaining three properties will be completed in 2012, with the latest being June 2012 (1Q FY 2013). Therefore, the financial impact of the entire portfolio will only be felt in late FY 2013, and this does not include possible additions to the portfolio during the first six months of 2012. The total square metres of the properties has exceeded 90,000, and it is Boustead’s aim to grow it to 200,000 to 300,000 sqm before the entire portfolio can be considered for sale to an industrial REIT. I had attempted to compute a blended rental income per square metre using information from CommerciaGuru dot com, but apparently different areas of the industrial park can command different rental rates, and the variance can be rather pronounced as it is also tied to the age of the building."

Note: This will be my last company analysis. Target Date for shutting down of my blog is Jan 31, 2012. All historical entries will be accessible but no more new posts after this date. Thanks.

[tonylim]

Hi MW,

Why do you want to shut down your blog ? Many including me will miss reading it.

[iam802]

Dear all, Part 3 of Boustead's 1H FY 2012 Analysis and Review is now up on my blog. Please feel free to visit and leave comments, thanks!

A snippet as follows:-

"The remaining three properties will be completed in 2012, with the latest being June 2012 (1Q FY 2013). Therefore, the financial impact of the entire portfolio will only be felt in late FY 2013, and this does not include possible additions to the portfolio during the first six months of 2012. The total square metres of the properties has exceeded 90,000, and it is Boustead’s aim to grow it to 200,000 to 300,000 sqm before the entire portfolio can be considered for sale to an industrial REIT. I had attempted to compute a blended rental income per square metre using information from CommerciaGuru dot com, but apparently different areas of the industrial park can command different rental rates, and the variance can be rather pronounced as it is also tied to the age of the building."

Note: This will be my last company analysis. Target Date for shutting down of my blog is Jan 31, 2012. All historical entries will be accessible but no more new posts after this date. Thanks.

MW,
Thanks for sharing.

Just curious, any particular reason for shutting down your blog from 2013 onwards? Eg. Reason like market not heading anywhere from 2013???

Nonetheless, thanks again.