Boustead Proj   

China to relocate Beijing govt from city centre

looking set  to break up above $1.00 soon.........

 

https://www.straitstimes.com/business/property/tech-focused-real-estate-start-up-echo-base-backed-by-razer-ceo-tan-min-liang
Tech-focused real estate start-up Echo Base backed by Razer CEO Tan Min-Liang announced
 

SINGAPORE - Razer chief executive Tan Min-Liang is poised to shake up traditional real estate development with a new start-up he backed that aims to incorporate artificial intelligence, the Internet of things, and other next-generation technologies in real estate projects.

Named Echo Base, the Singapore-based digital real estate start-up was announced on Friday (Feb 22) as Razer,  a gaming peripherals company, marked the ground breaking of its new South-east Asia  headquarters in one-north, which is expected to be ready by the middle of next year.

Echo Base is backed by Singapore Exchange Mainboard-listed Boustead Projects Limited and Moor House Capital, an investment holding company that is majority-controlled by Mr Tan, who is also Razer&rsquo s co-founder.
 

 

$1.04 the earlier target price was based on 40% discount to RNAV of $1.73.
   
https://research.sginvestors.io/2017/05/boustead-projects-limited-cimb-research-2017-05-23.html

Since then , there were many major developments both in the design and build as well as leasing segments. See report by motley fool below.
 
On 10 December 2018,  Boustead Projects Ltd    (SGX: AVM)  clinched a S$241.9 million contract with JTC Corporation that  saw its order book hit a record high of S$460 million. Since then, the company  has managed to clinch three more contracts to further boost its order book.
As a quick recap, Boustead Projects specializes in providing design and build solutions and project management expertise for industrial properties. The company&rsquo s clients include multi-national corporations in the healthcare, biotechnology, and logistics industries.

The contract wins

The three contracts awarded since the JTC Corporation project announcement are:
1.  A development project awarded to Boustead Development Partnership (a co-investment vehicle of Boustead Projects and a Middle Eastern sovereign wealth fund) for an aerospace facility in Singapore&rsquo s Seletar Aerospace Park. The property, which will be leased long-term to a company specializing in the transport industry, will be Boustead Project&rsquo s ninth project at Seletar Aerospace Park and 18th aerospace-related development.
2.  A contract for a business park development in the One-North precinct of Singapore which will be primarily used as the new Southeast Asia Headquarters for the Hong Kong-listed  Razer Inc  (SEHK: 1337), a leading global lifestyle brand for gamers. The building will have approximately 19,300 square metres of gross floor area (GFA) and completion is expected in the second quarter of 2020. The projects for Razer&rsquo s new headquarters and the latest aerospace facility in Seletar Aerospace Park &ndash which were both announced on 21 December 2018 &ndash boosted Boustead Project&rsquo s order book to S$548 million and increased the company&rsquo s regional leasehold portfolio to 337,000 square metres in GFA.
3.  On 18 January 2019, Boustead Projects announced that it was awarded a contract worth around S$200 million to build the global headquarters for Surbana Jurong Group, an integrated development, in the 600-hectare Jurong Innovation District in Singapore. This property will have a GFA of 68,915 square metres and is expected to be completed by 2021.

Yet another record-high order book

The latest contract with Surbana Jurong Group has boosted Boustead Projects&rsquo burgeoning order book to yet another new record high of S$747 million. In a short span of just over a month, Boustead Projects&rsquo order book has more than tripled from S$218 million (just before the JTC Corporation contract) to S$747 million currently.
As each project has its own timeline for completion which covers more than one financial year, it will be difficult to estimate  each project&rsquo s revenue and margin impact on Boustead Projects as the numbers will be based on the percentage of completion recognition method. But, the company has guided for a &ldquo positive material impact&rdquo on its profitability and earnings per share for FY2020 (financial year ended 31 March 2020) and FY2021.

Expansion of regional leasehold portfolio

It is also noteworthy that Boustead Projects is slowly but steadily growing its leasehold portfolio. As per the company&rsquo s annual report for FY2018, its portfolio&rsquo s GFA was 275,000 square metres. With the completion of the Seletar aerospace facility and also Razer&rsquo s headquarters, the GFA of Boustead Projects&rsquo GFA will rise by 22.5% to 337,000 square metres. Investors can therefore expect higher leasing income to flow through in FY2020 and FY2021 as these properties are progressively completed.
********************


The Older RNAV of $1.73 should have been increased by at least 25%.
Hence, the target price should be adjusted upwards by at least 25% too , to give $1.30.
 
 
 
 

 

BOUSTEAD PROJECTS AWARDED CONTRACT FOR ICONIC SURBANA JURONG CAMPUS IN SINGAPORE
 
&bull Integrated advanced development and global headquarters for one of Asia&rsquo s largest urban and infrastructure consulting firms &bull Project targets to achieve high scores in buildability, construction quality and eco-sustainability &bull Boustead Projects&rsquo first project in Jurong Innovation District &bull Boustead Projects Group&rsquo s order book backlog boosted to S$747 million .

The above contract is not expected to have a material impact on the profitability, earnings per share (&ldquo EPS&rdquo ) and net tangible asset (&ldquo NTA&rdquo ) value per share of the Boustead Projects Group in the current financial year ending 31 March 2019.  However, it is expected to have a positive material impact on the Boustead Projects Group&rsquo s profitability and EPS for the financial years ending 31 March 2020 and 31 March 2021.
 
 

tangsookiam1947      ( Date: 15-Jan-2019 21:03) Posted: Boustead project current share price of $0.90 => still deeply undervalued by at least 100%!! look at hotel grand central. had one applied the same concept , i.e. market cap per hotel room => deeply undervalued when it was only below $1.   tangsookiam1947      ( Date: 12-Jan-2019 14:28) Posted: Based on current share price of only $0.87, the market cap is $270mil. BP now has 337 000 sqm or 3.6 mil sq ft worth of industrial properties. This implies that market is only valuing the properties at $75 PSF. Is this significantly too low? Some industrial properties in good locations are priced at $400 to $500 psf. Maybe on the average, valuation should be about $200 PSF.   1.          $200 PSF x 3.6 mil PSF = > $700 mil. This is the valuation of properties alone. 2.          Not to forget, BP has outstanding book order of about $550 mil. 3.          In addition, it is also net cash ($41 mil as of March 2018) Compare the aggregate of items (1) to (3) and the current market cap of only $270mil

 

Boustead project current share price of $0.90 => still deeply undervalued by at least 100%!!

look at hotel grand central. had one applied the same concept , i.e. market cap per hotel room => deeply undervalued when it was only below $1.

 

tangsookiam1947      ( Date: 12-Jan-2019 14:28) Posted: Based on current share price of only $0.87, the market cap is $270mil. BP now has 337 000 sqm or 3.6 mil sq ft worth of industrial properties. This implies that market is only valuing the properties at $75 PSF. Is this significantly too low? Some industrial properties in good locations are priced at $400 to $500 psf. Maybe on the average, valuation should be about $200 PSF.   1.          $200 PSF x 3.6 mil PSF = > $700 mil. This is the valuation of properties alone. 2.          Not to forget, BP has outstanding book order of about $550 mil. 3.          In addition, it is also net cash ($41 mil as of March 2018) Compare the aggregate of items (1) to (3) and the current market cap of only $270mil

 

Based on current share price of only $0.87, the market cap is $270mil.

BP now has 337 000 sqm or 3.6 mil sq ft worth of industrial properties.

This implies that market is only valuing the properties at $75 PSF.

Is this significantly too low?

Some industrial properties in good locations are priced at $400 to $500 psf. Maybe on the average, valuation should be about $200 PSF.

 

1.          $200 PSF x 3.6 mil PSF = > $700 mil. This is the valuation of properties alone.

2.          Not to forget, BP has outstanding book order of about $550 mil.

3.          In addition, it is also net cash ($41 mil as of March 2018)

Compare the aggregate of items (1) to (3) and the current market cap of only $270mil

 

 

 

 

 

  It is intended that the BDP will award the design-and-build contract for the Development to Boustead Projects E& C Pte Ltd &ndash Boustead Projects&rsquo wholly-owned design-and-build subsidiary &ndash which together with the contract to build the Razer Group&rsquo s Southeast Asia Headquarters, are expected to raise the Boustead Projects Group&rsquo s order book backlog (unrecognised project revenue at the end of September 2018 plus the total value of new orders secured since then) to approximately S$548 million.
 
When completed, this Development &ndash along with that for Razer Group&rsquo s Southeast Asia Headquarters &ndash will grow Boustead Projects&rsquo regional leasehold portfolio (both whollyowned and jointly-owned) to 23 properties with over 337,000 square metres in expected GFA.   
 

tangsookiam1947      ( Date: 21-Dec-2018 20:43) Posted: Book order has increased to $548mil with latest 2 tender wins. Plus recurring income to further increase :)

 

Book order has increased to $548mil with latest 2 tender wins. Plus recurring income to further increase :)

 

https://www.fool.sg/2018/12/11/boustead-projects-ltd-more-than-doubles-its-order-book-with-latest-contract-win/
 

A quick comparison

Looking at Boustead Projects&rsquo FY2018 (financial year ended 31 March 2018) results, it reported S$170 million in revenue for its Design-and-Build segment for the year, and S$19.5 million in segment result before interest. These numbers work out to a segment margin of 11.5%.

If I assume that the MSRF contract is recognized fully from January 2019 onward, it would boost Boustead Projects&rsquo revenue for FY2019 by S$116 million. If I use a more conservative segment margin of 10% (as this is a large contract which may involve higher costs), the company&rsquo s segment result before interest would increase by S$11.6 million.

It&rsquo s worth noting that in FY2018, Boustead Projects&rsquo profit attributable to shareholders was S$29.2 million. S$11.6 million represents almost 40% of the company&rsquo s net profit for the prior year and is therefore significant.

 

This one is a very thinly traded counter, but yesterday (16.36 pm) saw a unusual buy-up of 700,400 shares at $0.84.
Today is up another one cent to $0.85, but transaction quiet down again.
 

 

Very Strong Buying at 90 cents!!

tangsookiam1947      ( Date: 14-Jul-2018 16:42) Posted: Even at current price of $0.895, market value = $277mil, still a far cry from $800mil. plus company is net cash (think 40mil at least??) *** AR 2018 - Today, our leasehold portfolio totals 20 wholly-owned and jointly-owned properties (19 completed and one still under construction) spanning over 275,000 square metres of gross floor area in Singapore, China and Malaysia, with a total market valuation approaching S$800 million. We will continue to expand our portfolio, through various options, to a level that we believe will enable us to unlock and optimise value for all shareholders. At the same time, we are actively seeking replacement long-term leases for current vacancies in our portfolio. tangsookiam1947      ( Date: 13-Jul-2018 19:02) Posted: this counter has been undervalued for too long. How can their industrial properties be worth so little.... Pls see the earlier postings.

 

Even at current price of $0.895, market value = $277mil, still a far cry from $800mil.

plus company is net cash (think 40mil at least??)

***
AR 2018 - Today, our leasehold portfolio totals 20 wholly-owned and jointly-owned properties (19 completed and one still under construction) spanning over 275,000 square metres of gross floor area in Singapore, China and Malaysia, with a total market valuation approaching S$800 million. We will continue to expand our portfolio, through various options, to a level that we believe will enable us to unlock and optimise value for all shareholders. At the same time, we are actively seeking replacement long-term leases for current vacancies in our portfolio.

tangsookiam1947      ( Date: 13-Jul-2018 19:02) Posted: this counter has been undervalued for too long. How can their industrial properties be worth so little.... Pls see the earlier postings.. Lucas4      ( Date: 13-Jul-2018 09:41) Posted: what happen today? expect speical dividend?

 

this counter has been undervalued for too long. How can their industrial properties be worth so little.... Pls see the earlier postings..

Lucas4      ( Date: 13-Jul-2018 09:41) Posted: what happen today? expect speical dividend?

 

what happen today? expect speical dividend?

 

usually BB buys when it is quiet??  haha

Stocky901      ( Date: 09-Jul-2018 20:58) Posted: Very quiet counter. Can buy some to keep?

 

Very quiet counter. Can buy some to keep?

 

Mr Market is only valuing BP at ~$250 mil....

tangsookiam1947      ( Date: 09-Jul-2018 19:19) Posted: AR 2018 Today, our leasehold portfolio totals 20 wholly-owned and jointly-owned properties (19 completed and one still under construction) spanning over 275,000 square metres of gross floor area in Singapore, China and Malaysia, with a total market valuation approaching S$800 million. We will continue to expand our portfolio, through various options, to a level that we believe will enable us to unlock and optimise value for all shareholders. At the same time, we are actively seeking replacement long-term leases for current vacancies in our portfolio.

 

AR 2018

Today, our leasehold portfolio totals 20 wholly-owned and jointly-owned properties (19 completed and one still under construction) spanning over 275,000 square metres of gross floor area in Singapore, China and Malaysia, with a total market valuation approaching S$800 million. We will continue to expand our portfolio, through various options, to a level that we believe will enable us to unlock and optimise value for all shareholders. At the same time, we are actively seeking replacement long-term leases for current vacancies in our portfolio.
 

 

Boustead Project Q1 should be very strong, boosted by one-off gain from the sales of property...

 

Interest in commercial and industrial property could shoot up as investors look for alternative opportunities following last week' s tough cooling measures for residential real estate, say consultants.

https://www.straitstimes.com/business/property/interest-in-commercial-industrial-space-may-rise