31-03-2012, 07:57 PM
Hawker Pacific is a much smaller development compared to IBM, hence absolute comparisons are meaningless. There is no doubt competition has heightened and clients are also becoming more aware of lease terms and their need to protect themselves from potentially lucrative landlords.
On a overall perspective, this DBL concept really means nothing if one compares Boustead Project's achievement to the rest of the construction sector since 2007. The rest of the sector has made tonnes of profits during the past years of construction boom. For the more daring contractors that jumped on residential prop bandwagon, the rewards are even more.
Hence, there are valid concerns as to why Boustead as a whole has been accorded very low ratings notwithstanding its strong net cash holdings, generation capability and quality asset holdings. If any investors need a direct construction, property or even REIT exposures, they have better quality picks.
On a overall perspective, this DBL concept really means nothing if one compares Boustead Project's achievement to the rest of the construction sector since 2007. The rest of the sector has made tonnes of profits during the past years of construction boom. For the more daring contractors that jumped on residential prop bandwagon, the rewards are even more.
Hence, there are valid concerns as to why Boustead as a whole has been accorded very low ratings notwithstanding its strong net cash holdings, generation capability and quality asset holdings. If any investors need a direct construction, property or even REIT exposures, they have better quality picks.