02-03-2011, 09:59 AM
Boustead still has other engines for growth in its other business divisions, and they are a globally diversified company operating in many diverse areas of the world, so the Middle East may be a blip, but I do not think it will significantly affect overall growth.
Take Geo-Spatial for example (the cash cow division I call it), the demand from Govt agencies in Singapore, Australia and SEA will still remain strong as this technology is needed for city planning and other uses. Revenue has been growing strongly over the years and cash generated also very healthy.
For its Real-Estate Solutions, their portfolio of D&B as well as DB&L is also growing, both locally and overseas (Vietnam, for example). This can boost their recurring income and cash flow streams. Boustead has also bought over the remaining stake in Boustead Projects recently announced, so they will own 100% of Boustead Projects come FY 2012.
Salcon has just managed to turn around in FY 2010, and looks set for another profitable year in FY 2011.
As for their O&G Division, I still maintain that higher oil prices (as a result of the Libyan crisis) will benefit them over the long-term, as their upstream and downstream divisions capture more business. Waste to Energy is always popular, and Boustead Maxitherm comes in for this.
So overall, I do not see a big "dent" in the Group's ability to continue slow but steady growth, at the same time generating healthy cash flows and paying out decent twice-yearly dividends.
Take Geo-Spatial for example (the cash cow division I call it), the demand from Govt agencies in Singapore, Australia and SEA will still remain strong as this technology is needed for city planning and other uses. Revenue has been growing strongly over the years and cash generated also very healthy.
For its Real-Estate Solutions, their portfolio of D&B as well as DB&L is also growing, both locally and overseas (Vietnam, for example). This can boost their recurring income and cash flow streams. Boustead has also bought over the remaining stake in Boustead Projects recently announced, so they will own 100% of Boustead Projects come FY 2012.
Salcon has just managed to turn around in FY 2010, and looks set for another profitable year in FY 2011.
As for their O&G Division, I still maintain that higher oil prices (as a result of the Libyan crisis) will benefit them over the long-term, as their upstream and downstream divisions capture more business. Waste to Energy is always popular, and Boustead Maxitherm comes in for this.
So overall, I do not see a big "dent" in the Group's ability to continue slow but steady growth, at the same time generating healthy cash flows and paying out decent twice-yearly dividends.
