Boustead

[Musicwhiz]

Not vested. From DBS:-

Boustead has won a S$37m contract to design and build an aircraft engine maintenance, repair and overhaul facility for Singapore Aero Engine Services.

The project will start immediately and is expected to complete by 3QCY09.

Assuming 50% of this contract is completed by FYE Mar 09 with 10% net margin, the impact to bottomline is only 2%, hence no change to our FY09 earnings forecast of S$73m.

We maintain our positive view on Boustead in view of the brisk orderbook momentum.

Thanks Winston,

Did this DBS write-up come in a small note (through their daily update) or was it part of a separate report on Boustead ?

Much appreciated,

Musicwhiz

[winston]

Hi MW,

This was from the Wired Daily.

Take care,
Winston

[winston]

Not vested.

BOUSTEAD SUBSIDIARY AWARDED S$67M CONTRACT TO DESIGN-AND-BUILD SEMICONDUCTOR EQUIPMENT MANUFACTURING FACILITY EARMARKED FOR GREEN MARK PLATINUM AWARD

Singapore, 9 July 2008

Boustead Singapore Limited (“Boustead” or the “Company”) is pleased to announce that its 91.7%-owned subsidiary, Boustead Projects Pte Ltd (“Boustead Projects”) – a leading specialist in industrial real estate solutions – has been awarded a S$67 million contract to design-and-build an integrated semiconductor equipment manufacturing, warehouse and office facility (the “Facility”) for a global Fortune 500 Company (the “Client”).

With a gross floor area of 32,000 square metres over five floors, the Facility will play a key role in the Client’s expansion of its global semiconductor equipment manufacturing business. The Facility is expected to be completed in 3Q 2009 on Boustead Projects’ fast-track programme.

Incorporating the latest features in energy and water efficiency, and environmental quality and sustainability, the Facility’s design allows for the future installation of a solar energy harvesting system. An integrated photovoltaic system generating approximately 300 kWp has been proposed for the Facility.

The Facility aims to achieve the Green Mark Platinum Award, which will be the first of its kind in the heavy industry category. Under the BCA Green Mark Scheme, the Green Mark Platinum Award is the highest award for environmental sustainability in buildings.

Mr Wong Fong Fui, Chairman and Group Chief Executive Officer of Boustead said, “We are delighted to have been awarded this sizeable contract from a prestigious multinational corporation with a global presence. This contract demonstrates Boustead Projects’ excellent track record in customising industrial real estate solutions for multinational corporations.

Together with the S$60 million The Singapore FreePort and the S$37 million Singapore Aero Engine Services MRO facility which were both secured recently, this contract sets Boustead Projects on the path to another excellent year.”

Mr Hooi Ka Cheong, Managing Director of Boustead Projects said, “We would like to thank our client for giving us the opportunity to deliver this landmark development. We have designed this facility to attain Green Mark Platinum, a distinction which is unheard of in the heavy industry category. It will be an important step in the right direction for the construction industry and Singapore as a whole.”

The above contract is expected to have a positive material impact on the profitability and earnings per share of the Company in the current financial year ending 31 March 2009. However, the contract is not expected to have a material impact on the net asset value per share in the current financial year.

[Musicwhiz]

Even I am a little overwhelmed at the rate which Boustead Projects is clinching contracts, but I am not complaining.

Thanks for the update, Winston, and have a good day.

[winston]

Hi MW,

Do you see the margins at Boustead to be hit by the high raw material prices ?

Take care,
Winston

[Musicwhiz]

Hi MW,

Do you see the margins at Boustead to be hit by the high raw material prices ?

Take care,
Winston

Yes, definitely I do. Which is why I project only a 10% net margin on such projects, to be conservative. However, FF Wong has been known to negotiate for cost-plus contracts (similar to the one they did for Libyan township), thus hedging the effects of higher costs. I am unsure if the more recent contracts fall under this category.

[Musicwhiz]

Dear all, Part 1 of my review and analysis of Boustead's FY 2008 financials and prospects has been posted on my blog. Kindly leave comments if you wish, thanks !

[Musicwhiz]

Dear all, Part 2 of my review and analysis of Boustead's FY 2008 financials and prospects has been posted on my blog. Kindly leave comments if you wish, thanks !

[Musicwhiz]

Dear all, Part 3 of my review and analysis of Boustead's FY 2008 financials and prospects has been posted on my blog. Kindly leave comments if you wish, thanks !

[LenaHuat]

Looks like property misadventure in the UK. Reminds me of what MM said abt 'hunchos' appearing in newspapers or media => something is amiss.

Business Times - 12 Aug 2008
Boustead's Q109 net profit falls 38.6%
By ANGELA TAN

Engineering-related Boustead Singapore Limited on Tuesday reported net profit for the first quarter to end June 2008 fell 38.6 per cent to S$5.63 million.

Excluding a one-off UK property sale a year ago, the net profit would have risen 96 per cent, it said.

Revenue for the quarter fell 11.3 per cent to S$79.59 million. This was mainly due to deferred timing of revenue recognition for many of its contracts by its engineering services.

Earnings per share was at 2.2 cents, down from 3.6 cents.