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OMH itself does not consume their own products. they are an agent to sell Silicomanganese to steel companies in China.

please correct me if I am wrong.
(28-05-2012, 08:38 PM)freedom Wrote: [ -> ]OMH itself does not consume their own products. they are an agent to sell Silicomanganese to steel companies in China.

please correct me if I am wrong.

I am not too sure either. From what I know, ore collected needs to be processed and smelt before they are being sold. It is just like oil needs to be refined before they can be sold to the end user
Better than expected results? Somehow, Boustead and the team under FF appears to have the ability to pull rabbits out from nowhere.

On OMH, I think what FF has been quoting can be related to

i) OMH's 8 Nov 11 announcement - just that how much can we trust such public information, ie is market efficient?

http://www.omholdingsltd.com/news_announ...o%2060.pdf

ii) http://www.omholdingsltd.com/news_announ...o%2062.pdf

To recap, OMH's financing issues pertaining to the mammoth project appears to have been resolve via the following:

i) http://www.omholdingsltd.com/news_announce12/03.pdf

ii) http://www.omholdingsltd.com/news_announce12/14.pdf

If indeed OMH stake pays off for Boustead, then for sure a new recurring earnings stream will emerge.
"The smelter will predominantly rely on the company’s 100% owned Bootu Creek mine for its
high-grade siliceous manganese ore requirements, supplemented by high-grade ore from
Tshipi.

It is our intention to lock in long-term off-take agreements with major customers
and distributors for approximately 60% to 70% of the smelter’s production, which will
significantly de-risk the project as well as assist with its financing and bankability process."

Can i then assume that 30% of it will be used for internal production?

As 50% are for managanese and 50% for silicon, it is likely that FEsilicon smelting service will be fully sold to others since they are only doing manganese exploration. Then they will allocate another 20% for manganese smelting service to be sold to others
A double whammy for me and my Crystal Ball,

EPS = 11ct (Actual) vs 8.33ct (Me) -> No Complaints!
Div = 3ct (Actual) vs 3.5ct (Me) -> #@$?!

I better throw away my crystal ball... ! Big Grin

Consolation <Press Release>: Barring unforeseen circumstances, the Group expects the current level of profitability to be largely sustained in FY2013.
(28-05-2012, 08:17 PM)shanrui_91 Wrote: [ -> ]Real Estate:
The DBL portfolio will be able to generate $18m rental revenue annually based on the current portfolio size, assuming the construction is completed.

I think he was saying that for FY2013 onward, we can expect S$18M rental revenue and S$9M PBT.

(28-05-2012, 08:17 PM)shanrui_91 Wrote: [ -> ]Can i then assume that 30% of it will be used for internal production?
OMH is a trading company as well. I guess they aim to sign long term contract for 70% production and 30% for trading.
Anw, the OMH projection of 200M PROFIT is too good to be true heh? As Mr Warren said, if it is too good to be true, it's probably not true.

For Salcon, if I didn't hear wrongly, the loss in middle east was due to foreign exchange loss.
(28-05-2012, 09:22 PM)valuestalker Wrote: [ -> ]I think he was saying that for FY2013 onward, we can expect S$18M rental revenue and S$9M PBT.
you are right about 2013, but i assume it is based on the current 107,000 portfolio once completed and that there's no buyback. I didn't catch the $9m PBT though



(28-05-2012, 09:22 PM)valuestalker Wrote: [ -> ]OMH is a trading company as well. I guess they aim to sign long term contract for 70% production and 30% for trading.
Anw, the OMH projection of 200M PROFIT is too good to be true heh? As Mr Warren said, if it is too good to be true, it's probably not true.

For Salcon, if I didn't hear wrongly, the loss in middle east was due to foreign exchange loss.
i am not sure about the forex, i only heard that it is from the abu dhabi project.

As for too good to be true, FF Wong seemed to imply a wishful thinking, something which he hopes to be achieved. But the more significant takeaway is that it can be sensed that he wants to buy more shares of OMH possible to 20% so that it can be counted as share of profit from associate instead of dividend.
Revenue drop, is it a bit issue???
(28-05-2012, 10:22 PM)stam Wrote: [ -> ]Revenue drop, is it a bit issue???
boustead is essentially still very much a project based company which will make the revenue and profit lumpy at times. The revenue drop also need to take into account the more DBL projects being undertaken, which resulted in a 160m drop in revenue. It will only be a concern if we see revenue from geo-spatial dropping. Order book rather than present revenue is a more important factor for project based company.

As for the profit, I think no one expect that PBT for waste and water can achieve $0.6m in the last quarter as compared to a $4.6m loss in Q42011. Another factor is the higher profit margin from energy-related engineering. And there is quite some amount of provision made in Q4 2011 as well.

Interest income actually contributed $3.8m in other income.

As for cashflow wise, OMH took away $23m while the investment properties another $56m. It seemed like the bid to build more recurring income will require some significant cash outlay.

still need some time to fully digest the result