AFR article dated 7 Feb 12
(08-03-2012, 10:57 AM)Contrarian Wrote: [ -> ]Musicwhiz, do u know if this involved leasing? A tile seller is not like IBM or Continental, their financials may not be so strong to buy the entire building. But $12M is not that big for a company either...
http://info.sgx.com/webcoranncatth.nsf/V...F0033B2B7/$file/Boustead_Announcement-Incorporation_of_a_Wholly_Owned_Subsidiary-12.03.2012.pdf?openelement
The above is a typical example of design, build and lease - REIT style development. Another announcement will be forthcoming when the deal is concluded with the lessee.
I guess shareholders are pretty eager for the Company to burst through the 100,000 sqm mark for their industrial leasehold property portfolio. Currently, it stands at around 90,000 sqm.
Keith Chu of Boustead was quoted in The Edge as saying that the value of all the properties can only be unlocked through a REIT listing once it hits 200,000 to 300,000 sqm. So they've got some way to go.
But then again, FF Wong has never been one to be in a rush!
(14-03-2012, 12:03 AM)Musicwhiz Wrote: [ -> ]I guess shareholders are pretty eager for the Company to burst through the 100,000 sqm mark for their industrial leasehold property portfolio. Currently, it stands at around 90,000 sqm.
Keith Chu of Boustead was quoted in The Edge as saying that the value of all the properties can only be unlocked through a REIT listing once it hits 200,000 to 300,000 sqm. So they've got some way to go.
But then again, FF Wong has never been one to be in a rush!
I believe the words is patient. When global market really recover from the Euro crisis and US resume its growth, with the blooming of Asia economy, the demand for Industry and commercial property will be up. This will be 1 strong sector of growth for Boustead.
This is indeed a deep value played company.
If anyone bother to do a 10 year research on Boustead, you will discover that Boustead Projects is the father of all industrial property REITs in Singapore.
Before 2008, the strategy was to develop and sell ind prop to some of the listed REITs. That is how Boustead build up its cash hoard.
Ironically now when Boustead is financially much stronger than the initial years, the strategy now has shifted to building recurrent income stream via the accumulation of new design, build, lease (DBL) projects. It is worth noting that the listed REIT space is a lot more crowded now and the comparative listed yield on competitors ranged from low 6% to 8%.
It will be worth monitoring how Boustead will eventually unlock their DBL projects into a listed vehicile that will release the latent shareholder wealth. Alternative, it is also possible to hive off an entire portfolio into a listed REIT and reaped a significant collective windfall.
In any event, when you have a company that is financially strong with steadily growing annual cashflow, there is little pressure for distress sales. At cash per share of $0.40, a comfortable annual cashflow generation of S$40m annually (about S$0.08 operating cashflow per share), the current annual dividend per share of $0.05/share is comfortably covered with prospect for comfortable growth.
Boustead is indeed a deeply valued cash and asset rich company with a generous 5.75% dividend yield not inferior to any leveraged listed REIT with dull organic earnings growth.
Vested
(15-03-2012, 06:56 PM)greengiraffe Wrote: [ -> ]Gearing up for FY3/13:
http://info.sgx.com/webcoranncatth.nsf/V...20033493D/$file/Boustead_Announcement-Boustead_Energy-Related_Engineering_Division_Awarded_SGD35M_in_Contracts-15.03.2012.pdf
Boustead's O&G Division is very contract-driven, hence I won't be too surprised to see contracts being announced periodically. In fact, like Keppel Corp and Semb Marine, I would actually be worried if they did not announce contracts because it would mean a decline in business activity.
The reality is that contract announcements only imply top line contribution, but the latest 3Q 2012 results showed that margins were under pressure for O&G division (comprising Controls and Electrics, Boustead Maxitherm and Boustead International Heaters). It would be useful if contracts were secured where margins would actually be decent, for at least shareholders can look forward to this division contributing positively to the bottom line.
The same can also be said for the Water and Wastewater division.
Meanwhile, the Geo-Spatial Division will continue to be the quiet performer, generating good FCF, yielding decent margins and demonstrating steady growth.
With regards to cash cow "ESRI" product, don't forget potential threat from Google.
ESRI is also used in Telecom industry (such as SingTel, Telstra, Optus etc) to plan the roll-out and operation of telecommunication network. I am in Telecom industry and I have personally used this product. We re-sales this product to telecom players.
Recently I have experienced that more and more telcom operators are asking for google-map based geo-spatial solution as a cheaper and simple alternatives to ESRI for the same purpose.
Though google-map is not as rich as ESRI, google will not stop keep enhancing and making google-map richer.
on side note of Mr. Wong, I have full respect on being candid about his mistakes. Those who admit mistakes are willing to learn and improve. Look at Warren Buffet. He bluntly criticise himself for his mistakes.
Your thoughts are welcome...
http://www.doe.gov.my/portal/wp-content/...Final1.pdf
"This DEIA has concluded that the proposed Ferro Manganese and Ferro Silicon Smelting
Plant in Samalaju Industrial Park, Bintulu, Sarawak is acceptable based on the
calculated impacts and risks to the surrounding area. Results of the DEIA have shown
that environmental issues (air quality, health and slag management) that have significant
impacts to the environment are well mitigated and no long term significant residual impacts.
Nevertheless, periodic monitoring plan is recommended to monitor the plant operations to
ensure the desired environmental standards are met.
Overall, the proposed Project with the recommended mitigation measures meets the criteria
of a sustainable development and the DEIA report is recommended to be approved."
(17-03-2012, 09:48 PM)yogi Wrote: [ -> ]Recently I have experienced that more and more telcom operators are asking for google-map based geo-spatial solution as a cheaper and simple alternatives to ESRI for the same purpose.
Though google-map is not as rich as ESRI, google will not stop keep enhancing and making google-map richer.
I share your sentiments on this potential threat from Google Maps. Though ESRI has been a consistent performer and is Boustead's cash cow, they are not immune to competition. It will be interesting to see if the division continues to generate solid returns, or if the numbers will start to deteriorate. It will be pretty apparent when this happens once we see ESRI PBT margins falling or revenue stagnating - the numbers do tell a good story!
On a side note, it will be good for me to question Management on this at the next upcoming AGM. To remind myself to do this.
