Boustead in talks to buy army base land for RM8b project
By Sharen Kaur
Published: 2011/01/10
Boustead Holdings Bhd (2771) may build mixed commercial and residential properties worth more than RM8 billion on the 98ha Batu Cantonment army base at Jalan Ipoh, Kuala Lumpur.
The group's main shareholder Lembaga Tabung Angkatan Tentera (LTAT), which holds a 59 per cent stake, is in talks with the government to buy the land and is close to sealing the deal.
Boustead deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin is hopeful that it will be involved in the land development.
"Hopefully the deal could be secured soon. Everyone is working hard to make it happen. If LTAT can buy the land, we will do a feasibility study to decide on the most viable properties to build," he said.
"It is a good site for a mixed development. It would be the kind of project that one would want to pursue on this prime land," Lodin told Business Times.
He said Boustead may build medium to high-end houses, commercial and residential towers, shophouses, small office/home office and a mall.
The government is selling some of its prized land bank around Kuala Lumpur and the Klang Valley at current market value for redevelopment.
These include the Batu Cantonment land, 24ha at Jalan Cochrane, the 1,320ha Rubber Research Institute land in Sungai Buloh, and smaller parcels at Jalan Stonor, Brickfields, and Bukit Ledang, off Jalan Duta.
It is unclear how much the Batu Cantonment land is worth but according to Previn Singhe, founder and chief executive officer of Zerin Properties, the market value for unconverted land at Jalan Ipoh is now between RM40 and RM80 per sq ft.
Previn said the development will attract foreign investments as it is closely located near the KLCC.
"The shear size of the development offers a lot of promises. Prices of real estate along Jalan Ipoh have always been stable with good movement ... it's not as docile as how one thinks.
"This project will have a positive impact on Jalan Ipoh if done well and if the developer can tap on the commuter line nearby, and the proposed Kepong-Kajang line," Previn said.
The Batu Cantonment army base, which has been there for over 40 years, will be relocated.
In 2002, the Perak state government had earmarked a 680ha site in Batu Gajah for the relocation.
Read more: Boustead in talks to buy army base land for RM8b project http://www.btimes.com.my/Current_News/BTIMES/articles/LTAT5/Article/index_html#ixzz1Adr59Z63
Showing posts with label BOUSTEAD. Show all posts
Showing posts with label BOUSTEAD. Show all posts
Monday 10 January 2011
Monday 3 January 2011
Tuesday 7 December 2010
Boustead assets sale a positive step forward
Boustead assets sale a positive step forward – Analysts
by Ronnie Teo ronnieteo@theborneopost.com. Posted on November 13, 2010, Saturday
KUCHING: Boustead Holdings Bhd’s (Boustead) proposed sale and leaseback agreement with Al-Hadharah Boustead Real Estate Investment Trust (AHBREIT) for its plantation assets was seen as a positive step forward by analysts.
PROFIT SHARING AGREEMENT: Ching says the variable rental payment will be based on a CPO price reference and there will be a profit-share agreement between Boustead and AHBREIT for any price of CPO sold above the reference price.
Hong Leong Investment Bank Bhd’s (HL Research) analyst noted that the proposed sale and leaseback of Sutera Estate in Sandakan and Taiping Rubber Plantation to AHBREIT was for a cash consideration of RM189.2 million.
“We view this positively due to interest savings and the reduction in gearing for Boustead,” he said.
According to ECM Libra Capital Sdn Bhd’s (ECM Libra) head analyst Bernard Ching, Boustead would profit by RM97.7 million in net gains from this venture along with an estimated interest savings of RM9.5 million for the financial year 2011 as reported by the group.
“The 3,580 hectare going into AHBREIT will still be captured by the group under its total hectarage calculation because it still gets to participate in the profits of the estates,” Ching pointed out. “As part of the leaseback agreement, Boustead will pay AHBREIT a fixed rental payment and also a variable rental payment.
“The variable rental payment will be based on a crude palm oil (CPO) price reference and there will be a profit-share agreement between Boustead and AHBREIT for any price of CPO sold above the reference price.”
Ching noted that the along with this new agreement, a new reference price and rental rates would be determined and known by next year.
“The agreement is as such that it has neutral impact to Boustead’s earnings, even in times like these when CPO prices are high.
“After all, Boustead’s 100 per cent owned subsidiary, Boustead Plantations Bhd does have a 60 per cent stake in AHBREIT and earns distributions and profit shares from the REIT,” he concluded.
http://www.theborneopost.com/?p=74821
by Ronnie Teo ronnieteo@theborneopost.com. Posted on November 13, 2010, Saturday
KUCHING: Boustead Holdings Bhd’s (Boustead) proposed sale and leaseback agreement with Al-Hadharah Boustead Real Estate Investment Trust (AHBREIT) for its plantation assets was seen as a positive step forward by analysts.
PROFIT SHARING AGREEMENT: Ching says the variable rental payment will be based on a CPO price reference and there will be a profit-share agreement between Boustead and AHBREIT for any price of CPO sold above the reference price.
Hong Leong Investment Bank Bhd’s (HL Research) analyst noted that the proposed sale and leaseback of Sutera Estate in Sandakan and Taiping Rubber Plantation to AHBREIT was for a cash consideration of RM189.2 million.
“We view this positively due to interest savings and the reduction in gearing for Boustead,” he said.
According to ECM Libra Capital Sdn Bhd’s (ECM Libra) head analyst Bernard Ching, Boustead would profit by RM97.7 million in net gains from this venture along with an estimated interest savings of RM9.5 million for the financial year 2011 as reported by the group.
“The 3,580 hectare going into AHBREIT will still be captured by the group under its total hectarage calculation because it still gets to participate in the profits of the estates,” Ching pointed out. “As part of the leaseback agreement, Boustead will pay AHBREIT a fixed rental payment and also a variable rental payment.
“The variable rental payment will be based on a crude palm oil (CPO) price reference and there will be a profit-share agreement between Boustead and AHBREIT for any price of CPO sold above the reference price.”
Ching noted that the along with this new agreement, a new reference price and rental rates would be determined and known by next year.
“The agreement is as such that it has neutral impact to Boustead’s earnings, even in times like these when CPO prices are high.
“After all, Boustead’s 100 per cent owned subsidiary, Boustead Plantations Bhd does have a 60 per cent stake in AHBREIT and earns distributions and profit shares from the REIT,” he concluded.
http://www.theborneopost.com/?p=74821
Tuesday 30 November 2010
Higher Q3 profit for Boustead
Boustead Holdings Bhd's (2771) said net profit improved to RM125 million in the third quarter to September this year compared with RM109 million a year ago.
For the nine-month period, it said net profit reached RM390 million, against RM239 millon in the same period last year.
Revenue for the period was also higher at RM4.5 billion compared with RM3.9 billion previously.
Boustead has again declared a single-tier dividend of 12 sen per share, bringing total dividend to date for the financial year to 27 sen.
This represents a 106 per cent rise in net dividend declared compared with the first nine months of financial year 2009.
Earnings per share (EPS) for the period was 35.2 sen and net asset per share was RM4.35 ( December 31 2009: RM4.20).
"Looking ahead, all the elements are in place for another year of growth for the group as we have already realised some of our strategies in delivering our earnings track record. Coupled with this fact, with crude palm oil prices performing very well, we expect our plantation division to be a driving force in delivering enhanced profitability to the group's bottom line," deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin said in a statement yesterday.
For the nine-month period, the plantation division contributed significantly, delivering a profit of RM132 million against RM51 million in 2009.
The finance & investment division achieved strong results, delivering a profit of RM120 million compared with RM30 million previously.
The trading division's profit totalling RM45 million was a twofold rise over last year's RM22 million.
Its manufacturing and services division closed the nine-month period with a profit of RM29 million, representing a 45 per cent improvement while the group's heavy industries division recorded a profit of RM99 million, lower than last year's profit of RM113 million.
Boustead said its property division's profit of RM49 million for the period was 17 per cent lower than last year, mainly due to the drop in contribution from property development activities.
Read more: Higher Q3 profit for Boustead http://www.btimes.com.my/Current_News/BTIMES/articles/bostido/Article/index_html#ixzz16ihb0Za1
For the nine-month period, it said net profit reached RM390 million, against RM239 millon in the same period last year.
Revenue for the period was also higher at RM4.5 billion compared with RM3.9 billion previously.
Boustead has again declared a single-tier dividend of 12 sen per share, bringing total dividend to date for the financial year to 27 sen.
This represents a 106 per cent rise in net dividend declared compared with the first nine months of financial year 2009.
Earnings per share (EPS) for the period was 35.2 sen and net asset per share was RM4.35 ( December 31 2009: RM4.20).
"Looking ahead, all the elements are in place for another year of growth for the group as we have already realised some of our strategies in delivering our earnings track record. Coupled with this fact, with crude palm oil prices performing very well, we expect our plantation division to be a driving force in delivering enhanced profitability to the group's bottom line," deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin said in a statement yesterday.
For the nine-month period, the plantation division contributed significantly, delivering a profit of RM132 million against RM51 million in 2009.
The finance & investment division achieved strong results, delivering a profit of RM120 million compared with RM30 million previously.
The trading division's profit totalling RM45 million was a twofold rise over last year's RM22 million.
Its manufacturing and services division closed the nine-month period with a profit of RM29 million, representing a 45 per cent improvement while the group's heavy industries division recorded a profit of RM99 million, lower than last year's profit of RM113 million.
Boustead said its property division's profit of RM49 million for the period was 17 per cent lower than last year, mainly due to the drop in contribution from property development activities.
Read more: Higher Q3 profit for Boustead http://www.btimes.com.my/Current_News/BTIMES/articles/bostido/Article/index_html#ixzz16ihb0Za1
Monday 29 November 2010
Boustead Holdings Berhad
Date announced 29/11/2010
Quarter 30/09/2010 Qtr 3 FYE 31/12/2010
STOCK BSTEAD C0DE 2771
Price $ 5.25 Curr. PE (ttm-Eps) 10.21 Curr. DY 2.79%
LFY Div 14.64 DPO ratio 36%
ROE 11.8% PBT Margin 10.2% PAT Margin 6.1%
Rec. qRev 1513900 q-q % chg 6% y-y% chq 7%
Rec qPbt 153700 q-q % chg -17% y-y% chq 22%
Rec. qEps 9.77 q-q % chg -38% y-y% chq -21%
ttm-Eps 51.40 q-q % chg -5% y-y% chq 41%
Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 9.00 Avg. L PE 6.00
Forecast High Pr 5.90 Forecast Low Pr 3.39 Recent Severe Low Pr 3.39
Current price is at Upper 1/3 of valuation zone.
RISK: Upside 26% Downside 74%
One Year Appreciation Potential 2% Avg. yield 5%
Avg. Total Annual Potential Return (over next 5 years) 7%
CPE/SPE 1.36 P/NTA 1.21 NTA 4.35 SPE 7.50 Rational Pr 3.86
Decision:
Already Owned: Buy Hold Sell Filed Review (future acq): Filed Discard: Filed
Guide: Valuation zones Lower 1/3 Buy Mid. 1/3 Maybe Upper 1/3 Sell
Aim:
To Buy a bargain: Buy at Lower 1/3 of Valuation Zone
To Minimise risk of Loss: Buy when risk is low i.e UPSIDE GAIN > 75% OR DOWNSIDE RISK <25%
To Double every 5 years: Seek for POTENTIAL RETURN of > 15%/yr.
To Prevent Loss: Sell immediately when fundamentals deteriorate
To Maximise Gain & Reduce Loss: Sell when CPE/SPE > 1.5, when in Upper 1/3 of Valuation Zone & Returns < 15%/yr
Stock Data: Recent Stock Performance:
Current Price (11/19/2010): 5.53
(Figures in Malaysian Ringgits)
1 Week -1.1% 13 Weeks -2.3%
4 Weeks 26.5% 52 Weeks 62.6%
Boustead Holdings Berhad Key Data:
Ticker: BOUS Country: MALAYSIA
Exchanges: KUL Major Industry: Diversified
Sub Industry: General Diversified
2009 Sales 5,392,000,000
(Year Ending Jan 2010).
Employees: 8,022
Currency: Malaysian Ringgits Market Cap: 5,199,095,860
Fiscal Yr Ends: December Shares Outstanding: 940,162,000
Share Type: Ordinary Closely Held Shares: 568,935,789
Day's Range: 5.20 - 5.28
52wk Range: 3.26 - 6.05
Volume: 878,800
Avg Vol (3m): 1,043,570
Note: Boustead declared interim dividends for each quarter of this financial year.
Q1 2010 5 sen
Q2 2010 10 sen
Q3 2010 12 sen
Thursday 4 November 2010
HLG Research maintains Buy on Boustead Holdings
HLG Research maintains Buy on Boustead Holdings
Written by The Edge Financial Daily
Wednesday, 03 November 2010 08:30
KUALA LUMPUR: HLG Research is maintaining its Buy recommendation on BOUSTEAD HOLDINGS BHD [] with a target price of RM5.67 following the latest corporate development.
The research house said on Wednesday, Nov 3 that at RM5.67, this is a 10% holding company discount to its conservative sum-of-parts of RM6.30.
The Edge FinancialDaily reported Boustead is issuing up to RM1 billion MTN to build a war chest of over RM500 million to continue its acquisition trail.
The first tranche of RM620 million will be used to fund the acquisition of Pharmaniaga, its manufacturing and property divisions and repay borrowing. The group is also very positive about the property sector on the back of government’s efforts to revitalise KL and is eyeing some PROPERTIES [] in the Klang Valley that are close to developed areas and targeting to achieve 25% annual property development revenue growth, it reported.
HLG Research, in its comments, said this fund raising exercise (besides funding its already announced acquisitions) is to position itself for the injection of 60 acres Jalan Cochrane land (deal expected to be finalized by end 2010) and the 245 acres Batu Cantonment army base.
Given its track record in developing Mutiara Damansara and Mutiara Rini (Johor), the two strategically located landbank would further add value to the group and further consolidate its status as a undervalued stock and attract interest from investors.
"Maintain Buy with a target price of RM5.67 (10% holding company discount to our conservative SOP of RM6.30). We stressed that our SOP is conservative as we are using flat CPO price assumption of RM2,500 a tonne for FY10-12 vis-Ã -vis circa RM3,000 a tonne currently.
“Moreover, we are only using 14.5x FY11 P/E vis-Ã -vis sector average of 16.5 times currently and yet to include any value from the potential injection of the two abovementioned landbank. By simply raising our CPO assumption to RM2,700 a tonne, our target price would have increased to RM6.22,” it said.
http://www.theedgemalaysia.com/business-news/176461-hlg-research-maintains-buy-on-boustead-holdings.html
Written by The Edge Financial Daily
Wednesday, 03 November 2010 08:30
KUALA LUMPUR: HLG Research is maintaining its Buy recommendation on BOUSTEAD HOLDINGS BHD [] with a target price of RM5.67 following the latest corporate development.
The research house said on Wednesday, Nov 3 that at RM5.67, this is a 10% holding company discount to its conservative sum-of-parts of RM6.30.
The Edge FinancialDaily reported Boustead is issuing up to RM1 billion MTN to build a war chest of over RM500 million to continue its acquisition trail.
The first tranche of RM620 million will be used to fund the acquisition of Pharmaniaga, its manufacturing and property divisions and repay borrowing. The group is also very positive about the property sector on the back of government’s efforts to revitalise KL and is eyeing some PROPERTIES [] in the Klang Valley that are close to developed areas and targeting to achieve 25% annual property development revenue growth, it reported.
HLG Research, in its comments, said this fund raising exercise (besides funding its already announced acquisitions) is to position itself for the injection of 60 acres Jalan Cochrane land (deal expected to be finalized by end 2010) and the 245 acres Batu Cantonment army base.
Given its track record in developing Mutiara Damansara and Mutiara Rini (Johor), the two strategically located landbank would further add value to the group and further consolidate its status as a undervalued stock and attract interest from investors.
"Maintain Buy with a target price of RM5.67 (10% holding company discount to our conservative SOP of RM6.30). We stressed that our SOP is conservative as we are using flat CPO price assumption of RM2,500 a tonne for FY10-12 vis-Ã -vis circa RM3,000 a tonne currently.
“Moreover, we are only using 14.5x FY11 P/E vis-Ã -vis sector average of 16.5 times currently and yet to include any value from the potential injection of the two abovementioned landbank. By simply raising our CPO assumption to RM2,700 a tonne, our target price would have increased to RM6.22,” it said.
http://www.theedgemalaysia.com/business-news/176461-hlg-research-maintains-buy-on-boustead-holdings.html
Boustead
Date announced 23/08/2010
Quarter 30/06/2010 Qtr 2
FYE 31/12/2010
STOCK BSTEAD
C0DE 2771
Price $ 5.87 Curr. PE (ttm-Eps) 10.86 Curr. DY 2.49%
LFY Div 14.64 DPO ratio 36%
ROE 12.5% PBT Margin 13.0% PAT Margin 10.3%
Rec. qRev 1425000 q-q % chg -8% y-y% chq 12%
Rec qPbt 185900 q-q % chg 38% y-y% chq 127%
Rec. qEps 15.68 q-q % chg 61% y-y% chq 204%
ttm-Eps 54.04 q-q % chg 24% y-y% chq 28%
Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 9.00 Avg. L PE 6.00
Forecast High Pr 6.21 Forecast Low Pr 3.38 Recent Severe Low Pr 3.38
Current price is at Upper 1/3 of valuation zone.
RISK: Upside 12% Downside 88%
One Year Appreciation Potential 1% Avg. yield 4%
Avg. Total Annual Potential Return (over next 5 years) 5%
CPE/SPE 1.45 P/NTA 1.35 NTA 4.34 SPE 7.50 Rational Pr 4.05
Decision:
Already Owned: Buy Hold Sell Filed; Review (future acq): Filed; Discard: Filed
Guide: Valuation zones Lower 1/3 Buy Mid. 1/3 Maybe Upper 1/3 Sell
Aim:
To Buy a bargain: Buy at Lower 1/3 of Valuation Zone
To Minimise risk of Loss: Buy when risk is low i.e UPSIDE GAIN > 75% OR DOWNSIDE RISK <25%
To Double every 5 years: Seek for POTENTIAL RETURN of > 15%/yr.
To Prevent Loss: Sell immediately when fundamentals deteriorate
To Maximise Gain & Reduce Loss: Sell when CPE/SPE > 1.5, when in Upper 1/3 of Valuation Zone & Returns < 15%/yr
Monday 25 October 2010
Plantation stocks up as CPO climbs
Plantation stocks up as CPO climbs
Tags: Batu Kawan | Boustead | Genting Plantations | IOI Corp | KLK | Kulim | Sime Darby
Written by Surin Murugiah
Monday, 25 October 2010 11:29
KUALA LUMPUR: PLANTATION []-related stocks advanced on Monday, Oct 25 as crude palm oil futures rose Monday morning and was up RM66 per tonne to RM3,071.
At 11.40am, KLK was up 44 sen to RM18.94, Kulim gained 27 sen to RM9.79, Boustead and Batu Kawan were up 24 sen each to RM5.90 and RM15.54 respectively, Genting Plantations rose 14 sen to RM8.58, Sime Darby up eight sen to RM8.88 and IOI Corp added three sen to RM5.82.
http://www.theedgemalaysia.com/business-news/175913-plantation-stocks-up-as-cpo-climbs.html
Tags: Batu Kawan | Boustead | Genting Plantations | IOI Corp | KLK | Kulim | Sime Darby
Written by Surin Murugiah
Monday, 25 October 2010 11:29
KUALA LUMPUR: PLANTATION []-related stocks advanced on Monday, Oct 25 as crude palm oil futures rose Monday morning and was up RM66 per tonne to RM3,071.
At 11.40am, KLK was up 44 sen to RM18.94, Kulim gained 27 sen to RM9.79, Boustead and Batu Kawan were up 24 sen each to RM5.90 and RM15.54 respectively, Genting Plantations rose 14 sen to RM8.58, Sime Darby up eight sen to RM8.88 and IOI Corp added three sen to RM5.82.
http://www.theedgemalaysia.com/business-news/175913-plantation-stocks-up-as-cpo-climbs.html
Tuesday 19 October 2010
Target price on Boustead Hldgs raised
9.10.2010
HwangDBS has raised its target price on Boustead Holdings to RM6.70, with a "buy" recommendation.
The research outfit said Boustead "remains our high conviction pick. We nudged up our price target to RM6.70 after updating market values of its listed entities and applying similar 20 per cent holding company discount.
HwangDBS noted that Bousteads 65 per cent-owned BHIC announced that its associate company, Boustead Naval Shipyard had received a LOI from the Malaysian Ministry of Defence to construct six second-generation patrol vessels with combatant capabilities.
The contract value and duration were not disclosed pending negotiation with the government.
But if the initial six vessels are a benchmark, this could be worth at least RM6.7 billion, almost triple its current RM2.5 billion orderbook.
Read more: Target price on Boustead Hldgs raised http://www.btimes.com.my/Current_News/BTIMES/articles/20101019101444/Article/index_html#ixzz12mNtDAUp
HwangDBS has raised its target price on Boustead Holdings to RM6.70, with a "buy" recommendation.
The research outfit said Boustead "remains our high conviction pick. We nudged up our price target to RM6.70 after updating market values of its listed entities and applying similar 20 per cent holding company discount.
HwangDBS noted that Bousteads 65 per cent-owned BHIC announced that its associate company, Boustead Naval Shipyard had received a LOI from the Malaysian Ministry of Defence to construct six second-generation patrol vessels with combatant capabilities.
The contract value and duration were not disclosed pending negotiation with the government.
But if the initial six vessels are a benchmark, this could be worth at least RM6.7 billion, almost triple its current RM2.5 billion orderbook.
Read more: Target price on Boustead Hldgs raised http://www.btimes.com.my/Current_News/BTIMES/articles/20101019101444/Article/index_html#ixzz12mNtDAUp
Boustead gets LOI for combat vessels
Published: Monday October 18, 2010 MYT 2:31:00 PM
Boustead gets LOI for combat vessels
PETALING JAYA: Boustead Heavy Industries Corp has received a letter of intent (LOI) from the Defence Ministry to undertake the construction of six second-generation patrol vessels with comabatant capabilities.
The company said in an announcement to Bursa Malaysia that it received the letter last Friday and that the value and duration of the project were to be negotiated with the government.
http://biz.thestar.com.my/news/story.asp?file=/2010/10/18/business/20101018144019&sec=business
Boustead gets LOI for combat vessels
PETALING JAYA: Boustead Heavy Industries Corp has received a letter of intent (LOI) from the Defence Ministry to undertake the construction of six second-generation patrol vessels with comabatant capabilities.
The company said in an announcement to Bursa Malaysia that it received the letter last Friday and that the value and duration of the project were to be negotiated with the government.
http://biz.thestar.com.my/news/story.asp?file=/2010/10/18/business/20101018144019&sec=business
Saturday 2 October 2010
Boustead — a sleeping giant awakens
Boustead Holdings Bhd
(Sept 30, RM4.91)
Initiate coverage with buy call at RM4.45 with target price of RM6.60: We initiate coverage of Boustead with a “buy” rating and RM6.60 target price based on 20% discount to sum-of-parts (SOP) value. Our core investment thesis is three-fold:
1) More proactive management. Major shareholder, LTAT, is looking to raise Boustead’s free float by cutting its 60% stake to 50% by end-2010. It also recently bought 86.1% of Pharmaniaga Bhd, a government healthcare service provider, which would allow for vertical integration within the group and aid in the 55% EPS growth for FY2011F. We think the market has not priced in the significant earnings accretion. On the cards is also the potential sale of its Indonesian plantation estates (about 18,000ha) that are capping its current blended FFB yield at 16.7 tonnes per hectare.
2) GLC-property proxy. Its property arm is due for a major transformation as LTAT is currently finalising two lucrative government land deals — (i) 60 acres of Jalan Cochrane land and (ii) the 245-acre Batu Cantonment army base in Jalan Ipoh, both in Kuala Lumpur. Both developments will have a MRT station. We estimate these projects could add RM2.05 per share, raising our SOP value to RM10.35. This excludes more recently the rights to claim highly valuable land in Penang. Execution risk is minimal premised on its highly successful development in Mutiara Damansara.
3) Surge in contracts for BHIC. BHIC is expected to capitalise on the next batch of six out of 27 patrol vessels from the Royal Malaysian Navy. If the initial six vessels were a benchmark, this contract could be worth at least RM6.7 billion, almost triple its RM2.5 billion order book value. Our new order win assumptions are conservative at RM800 million per year for FY2010 to FY2012F.
Boustead’s valuation is appealing at a one-year forward PER of seven times and 0.9 time P/NTA, while offering a 5% yield. These are roughly at its historical mean levels, but we expect valuations to expand when the market recognises the earnings-accretive Pharmaniaga acquisition and the formalisation of the two key land deals.
Boustead’s current RM4.2 billion market capitalisation implies its lucrative plantation assets, growing property business, and trading arm, are currently trading at only six times CY2011 earnings. — HwangDBS Vickers Research, Sept 30
(Sept 30, RM4.91)
Initiate coverage with buy call at RM4.45 with target price of RM6.60: We initiate coverage of Boustead with a “buy” rating and RM6.60 target price based on 20% discount to sum-of-parts (SOP) value. Our core investment thesis is three-fold:
1) More proactive management. Major shareholder, LTAT, is looking to raise Boustead’s free float by cutting its 60% stake to 50% by end-2010. It also recently bought 86.1% of Pharmaniaga Bhd, a government healthcare service provider, which would allow for vertical integration within the group and aid in the 55% EPS growth for FY2011F. We think the market has not priced in the significant earnings accretion. On the cards is also the potential sale of its Indonesian plantation estates (about 18,000ha) that are capping its current blended FFB yield at 16.7 tonnes per hectare.
2) GLC-property proxy. Its property arm is due for a major transformation as LTAT is currently finalising two lucrative government land deals — (i) 60 acres of Jalan Cochrane land and (ii) the 245-acre Batu Cantonment army base in Jalan Ipoh, both in Kuala Lumpur. Both developments will have a MRT station. We estimate these projects could add RM2.05 per share, raising our SOP value to RM10.35. This excludes more recently the rights to claim highly valuable land in Penang. Execution risk is minimal premised on its highly successful development in Mutiara Damansara.
3) Surge in contracts for BHIC. BHIC is expected to capitalise on the next batch of six out of 27 patrol vessels from the Royal Malaysian Navy. If the initial six vessels were a benchmark, this contract could be worth at least RM6.7 billion, almost triple its RM2.5 billion order book value. Our new order win assumptions are conservative at RM800 million per year for FY2010 to FY2012F.
Boustead’s valuation is appealing at a one-year forward PER of seven times and 0.9 time P/NTA, while offering a 5% yield. These are roughly at its historical mean levels, but we expect valuations to expand when the market recognises the earnings-accretive Pharmaniaga acquisition and the formalisation of the two key land deals.
Boustead’s current RM4.2 billion market capitalisation implies its lucrative plantation assets, growing property business, and trading arm, are currently trading at only six times CY2011 earnings. — HwangDBS Vickers Research, Sept 30
This article appeared in The Edge Financial Daily, October 1, 2010.
Monday 30 August 2010
Boustead 2Q net profit surges 212% to RM146.
Boustead 2Q net profit surges 212% to RM146.
Written by Surin Murugiah
Tuesday, 24 August 2010 12:15
KUALA LUMPUR: Boustead Holdings Bhd’s net profit for the second quarter (2Q) ended June 30, 2010 surged 212% to RM146.5 million from RM46.9 million a year ago, mainly due to stronger palm oil prices and higher sales volume.
Its revenue for the quarter increased to RM1.42 billion from RM1.28 billion in 2009, with earnings per share (EPS) of 15.68 sen.
Boustead declared a second interim single tier dividend of 10 sen per share.
For the six months ended June 30, Boustead’s net profit jumped to RM236.7 million from RM107.8 million, on the back of a 20% increase in revenue to RM2.98 billion from RM2.49 billion in 2009. EPS came in at 25.45 sen.
In a statement yesterday, Boustead deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin said most of its divisions had performed satisfactorily and had marked improvements compared with the previous financial year.
“Coupled with this, our focus on improving efficiencies and strengthening organic growth has indeed proved viable,” he said.
“The primary contributing factor was the recognition of gains from the disposal of BH Insurance Bhd for RM75 million. Furthermore, the improved results from the Affin Group and interest savings from Boustead’s level contributed to the division’s bottom line,” he said.
The heavy industries division closed the six-month period with a lower profit of RM49 million, compared with RM64 million during the same period last year, mainly due to lower progress billings.
The trading division’s profit for the first six months of 2010, totalling RM33 million, was a significant improvement from RM7.2 million for the same period last year, due to increase in sales volume driven by BH Petrol.
The property division’s profit of RM31 million for the six month period saw a decrease compared with RM40 million in the same period in 2009 due to a decline in contribution from property development activity, while the manufacturing and services division recorded a RM10 million profit.
“Our divisions are at the forefront of the Malaysian economy and we expect to ride on this positive sentiment,” he said.
“In addition, we are optimistic of CPO prices trending upwards over the next few months due to adverse weather conditions, thinning supply and an increase in demand, especially in traditional markets around the world.”
Written by Surin Murugiah
Tuesday, 24 August 2010 12:15
KUALA LUMPUR: Boustead Holdings Bhd’s net profit for the second quarter (2Q) ended June 30, 2010 surged 212% to RM146.5 million from RM46.9 million a year ago, mainly due to stronger palm oil prices and higher sales volume.
Its revenue for the quarter increased to RM1.42 billion from RM1.28 billion in 2009, with earnings per share (EPS) of 15.68 sen.
Boustead declared a second interim single tier dividend of 10 sen per share.
For the six months ended June 30, Boustead’s net profit jumped to RM236.7 million from RM107.8 million, on the back of a 20% increase in revenue to RM2.98 billion from RM2.49 billion in 2009. EPS came in at 25.45 sen.
In a statement yesterday, Boustead deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin said most of its divisions had performed satisfactorily and had marked improvements compared with the previous financial year.
“Coupled with this, our focus on improving efficiencies and strengthening organic growth has indeed proved viable,” he said.
Lodin said the plantation division registered a significant increase in profit mainly due to positive crude palm oil (CPO) prices, while Boustead’s finance and investment division was the highest profit contributor for the six-month period, delivering a profit of RM105 million.
“The primary contributing factor was the recognition of gains from the disposal of BH Insurance Bhd for RM75 million. Furthermore, the improved results from the Affin Group and interest savings from Boustead’s level contributed to the division’s bottom line,” he said.
The heavy industries division closed the six-month period with a lower profit of RM49 million, compared with RM64 million during the same period last year, mainly due to lower progress billings.
The trading division’s profit for the first six months of 2010, totalling RM33 million, was a significant improvement from RM7.2 million for the same period last year, due to increase in sales volume driven by BH Petrol.
The property division’s profit of RM31 million for the six month period saw a decrease compared with RM40 million in the same period in 2009 due to a decline in contribution from property development activity, while the manufacturing and services division recorded a RM10 million profit.
Lodin said Boustead was bullish on the prospects ahead as the Malaysian economy was expected to fare much better in the second half of the financial year.
“Our divisions are at the forefront of the Malaysian economy and we expect to ride on this positive sentiment,” he said.
“In addition, we are optimistic of CPO prices trending upwards over the next few months due to adverse weather conditions, thinning supply and an increase in demand, especially in traditional markets around the world.”
Tuesday 24 August 2010
Plantations, banking boost Boustead earnings in Q2
Plantations, banking boost Boustead earnings in Q2
Published: 2010/08/24
CONGLOMERATE Boustead Holdings Bhd (2771)has tripled its second quarter net profit, driven mainly by its plantation and banking businesses.
It also doubled its dividend for the quarter to 10 sen a share, bringing the total payout for the first six months to 15 sen a share from 10 sen a year ago.
Boustead, controlled by Lembaga Tabung Angkatan Tentera, reported a net profit of RM146.5 million for the April-June quarter, up from RM46.9 million in the same period a year ago.
Revenue for the three-month period was 12 per cent higher at RM1.42 billion from RM1.27 billion in 2009.
Boustead deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin said most of its divisions have performed satisfactorily.
"We have marked improvements compared with the previous financial year," he said in a statement yesterday.
Cumulatively, the group doubled its net profit to RM266 million for the first six months compared with RM131 million last year.
Revenue for the first half of the year was 20 per cent higher at RM3 billion.
Leading the way for the six-month period was the plantation division which registered a significant increase in profit of RM92 million from RM34 million in 2009.
"The increase was primarily due to positive crude palm oil (CPO) prices," he said.
The finance and investment division was the highest profit contributor for the six-month period delivering a profit of RM105 million.
This resulted in an increase of RM95 million from 2009.
"The primary contributing factor was the recognition of gains from the disposal of BH Insurance Bhd for RM75 million," he said.
Furthermore, improved results from the Affin Group and interest savings from Boustead Holdings' level contributed to the division's bottom line.
Its other divisions such as heavy industries conversely closed the six months with a lower profit of RM49 million, compared with RM64 million during the same period last year. This was mainly due to lower progress billings.
The group is bullish on prospects as the Malaysian economy is expected to fare much better in the second half of the financial year.
"Our divisions are at the forefront of the Malaysian economy and we expect to ride on this positive sentiment," he said.
Boustead is optimistic of CPO prices rising over the next few months due to adverse weather conditions, thinning supply and an increase in demand, especially in traditional markets around the world
Read more: Plantations, banking boost Boustead earnings in Q2 http://www.btimes.com.my/Current_News/BTIMES/articles/bouse-2/Article/#ixzz0xTwFZmdI
Thursday 5 August 2010
Boustead
Boustead
4.8.2010
At the price of 3.86, its ttm-PE was 8.28 and its DY was 7.12.
Historical 5 Yr Data:
EPSGR 8%
DPSGR 17.8%
PE range 7.7 to 12.7
DY range 7.8% to 4.3%
Its ttm-PE is at the lower end of its historical PE range.
Its DY is at the higher end of its historical DY range.
Recent Stock Performance
Boustead has distributed regular dividends for many years.
Its dividends have increased over the years.
Given its present DY is at the higher end of its historical DY range, is Boustead undervalued?
At the present price, is this stock an investment providing a safety of principal with a potential of a moderate positive return?
4.8.2010
At the price of 3.86, its ttm-PE was 8.28 and its DY was 7.12.
Historical 5 Yr Data:
EPSGR 8%
DPSGR 17.8%
PE range 7.7 to 12.7
DY range 7.8% to 4.3%
Its ttm-PE is at the lower end of its historical PE range.
Its DY is at the higher end of its historical DY range.
Recent Stock Performance
| 1 Week | 0.0% | 13 Weeks | 2.4% | ||
 | | | | | |
| 4 Weeks | 9.2% | 52 Weeks | 7.7% |
Boustead has distributed regular dividends for many years.
Its dividends have increased over the years.
Given its present DY is at the higher end of its historical DY range, is Boustead undervalued?
At the present price, is this stock an investment providing a safety of principal with a potential of a moderate positive return?
Thursday 17 June 2010
Tuesday 6 April 2010
A quick look at Boustead
Boustead Holdings Berhad
Business Description:
Boustead Holdings Berhad. The Group's principal activities are warehousing and distributing fast moving consumer products for selected clients. Other activities include designing, constructing, upgrading, repairing and maintaining naval and merchant ships; planting and processing oil palm, as well as forestry and oil bulking installations; manufacturing cellulose fibre cement boards used for wide ranging ceiling and cladding applications; provision of commercial, Islamic and investment banking services, money broking, fund management, underwriting of general and life insurance business, and property investment and development. It is also involved in investment holding. Operations are carried out in Malaysia.
Wright Quality Rating: CBD1
A quick look at Boustead
http://spreadsheets.google.com/pub?key=tMgHTCHQQXPNdQubaHM-IVg&output=html
Tuesday April 6, 2010
Boustead to sell land in Sumatra for US$50m
By DANNY YAP
danny@thestar.com.my
KUALA LUMPUR: Diversified group Boustead Holdings Bhd, which is targeting to sell off its 17,000ha of plantation land in south-west Sumatra before year-end, hopes to raise about US$50mil from the sale. (=US 2,941 per ha) Deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin said over 50% of the land was currently planted with oil palm.
“We are on the lookout for buyers. If we get a good price we will sell,” he said told reporters after Boustead’s AGM and EGM yesterday.
On reasons for selling, Lodin said as it was a stand-alone plantation, there were logistics problems, and the company had no plans to expand it.
Lodin said Boustead would continue to hive off its non-core and non-performing assets to improve efficiency and also reduce bank borrowings.
He said Boustead had managed to dispose of its non-profitable businesses and non-core assets over the years which had helped to reduce its gearing. “Our gearing is currently 0.8 times, compared with 1.2 times in 2009.”
On dividends, Lodin said Boustead would continue with its quarterly dividend payout although it was not a written company policy. The payout was on condition it remained profitable.
For the financial year ended Dec 31, 2009 (FY09), Boustead paid out dividends net-of-tax amounting to 22.1 sen per share.
The total dividend payout of RM184mil represents 54% of its attributable profit and a 27% increase from the payout from FY08.
“This increase in dividend payout is sizeable given the enlarged share capital as a result of the rights issue undertaken during the third quarter last year to increase shareholder base,” he noted.
On Boustead’s performance, Lodin said despite a tough year in 2009, the company managed to post a respectable pretax profit of RM502mil, compared with RM679mil in 2008.
On the key performance indicator this year, he said Boustead targeted a return-on-equity of 10%, pre-tax return-on-asset of 7% and net dividend of 18 sen.
On its disposal of the 80% stake in BH Insurance (M) Bhd to AXA Affin General Insurance Bhd, Lodin said the company would gain RM363mil from the sale. In addition, Boustead would also rake in RM75mil profit from BH Insurance’s business prior to the stake sale.
“It was a good investment,” he said, adding that after the disposal of BH Insurance, it still maintained a 20% stake in Affin Bank.
On its business outlook, Lodin said all divisions looked good taking account of the improved global economic conditions. “We anticipate a better year,” he said, adding that Boustead would continue to focus on its six core business divisions - heavy industry, plantation, property, trading, finance and investment as well as manufacturing and services.
Lodin said the heavy industry division, especially shipbuilding, would continue to be the key driver of growth for the company.
He said the division now contributed about 30% to revenue, adding that the finance and investment division contributed about 20%, property 20%, plantation 15%, trading 10% and manufacturing 5%.
“We believe our plantation division can do better this year with crude palm oil prices on the uptrend. Another division that can perform better include finance and investment.”
Business Description:
Boustead Holdings Berhad. The Group's principal activities are warehousing and distributing fast moving consumer products for selected clients. Other activities include designing, constructing, upgrading, repairing and maintaining naval and merchant ships; planting and processing oil palm, as well as forestry and oil bulking installations; manufacturing cellulose fibre cement boards used for wide ranging ceiling and cladding applications; provision of commercial, Islamic and investment banking services, money broking, fund management, underwriting of general and life insurance business, and property investment and development. It is also involved in investment holding. Operations are carried out in Malaysia.
Wright Quality Rating: CBD1
A quick look at Boustead
http://spreadsheets.google.com/pub?key=tMgHTCHQQXPNdQubaHM-IVg&output=html
Tuesday April 6, 2010
Boustead to sell land in Sumatra for US$50m
By DANNY YAP
danny@thestar.com.my
KUALA LUMPUR: Diversified group Boustead Holdings Bhd, which is targeting to sell off its 17,000ha of plantation land in south-west Sumatra before year-end, hopes to raise about US$50mil from the sale. (=US 2,941 per ha) Deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin said over 50% of the land was currently planted with oil palm.
“We are on the lookout for buyers. If we get a good price we will sell,” he said told reporters after Boustead’s AGM and EGM yesterday.
On reasons for selling, Lodin said as it was a stand-alone plantation, there were logistics problems, and the company had no plans to expand it.
Lodin said Boustead would continue to hive off its non-core and non-performing assets to improve efficiency and also reduce bank borrowings.
He said Boustead had managed to dispose of its non-profitable businesses and non-core assets over the years which had helped to reduce its gearing. “Our gearing is currently 0.8 times, compared with 1.2 times in 2009.”
On dividends, Lodin said Boustead would continue with its quarterly dividend payout although it was not a written company policy. The payout was on condition it remained profitable.
For the financial year ended Dec 31, 2009 (FY09), Boustead paid out dividends net-of-tax amounting to 22.1 sen per share.
The total dividend payout of RM184mil represents 54% of its attributable profit and a 27% increase from the payout from FY08.
“This increase in dividend payout is sizeable given the enlarged share capital as a result of the rights issue undertaken during the third quarter last year to increase shareholder base,” he noted.
On Boustead’s performance, Lodin said despite a tough year in 2009, the company managed to post a respectable pretax profit of RM502mil, compared with RM679mil in 2008.
On the key performance indicator this year, he said Boustead targeted a return-on-equity of 10%, pre-tax return-on-asset of 7% and net dividend of 18 sen.
On its disposal of the 80% stake in BH Insurance (M) Bhd to AXA Affin General Insurance Bhd, Lodin said the company would gain RM363mil from the sale. In addition, Boustead would also rake in RM75mil profit from BH Insurance’s business prior to the stake sale.
“It was a good investment,” he said, adding that after the disposal of BH Insurance, it still maintained a 20% stake in Affin Bank.
On its business outlook, Lodin said all divisions looked good taking account of the improved global economic conditions. “We anticipate a better year,” he said, adding that Boustead would continue to focus on its six core business divisions - heavy industry, plantation, property, trading, finance and investment as well as manufacturing and services.
Lodin said the heavy industry division, especially shipbuilding, would continue to be the key driver of growth for the company.
He said the division now contributed about 30% to revenue, adding that the finance and investment division contributed about 20%, property 20%, plantation 15%, trading 10% and manufacturing 5%.
“We believe our plantation division can do better this year with crude palm oil prices on the uptrend. Another division that can perform better include finance and investment.”
Tuesday 24 November 2009
Boustead 3Q net profit down 48% y-o-y
Boustead 3Q net profit down 48% y-o-y
Written by Chong Jin Hun
Monday, 23 November 2009 15:57
KUALA LUMPUR: BOUSTEAD HOLDINGS BHD []'s third quarter (3Q) net profit fell 47.5% year-on-year, dragged down by lower income from its PLANTATION [], heavy industries, real estate and hotel operations.
In a statement to the exchange today, Boustead said net profit declined to RM86.16 million in 3Q ended September from RM164 million, while revenue dropped 27.2% to RM1.42 billion from RM1.95 billion.
Cumulative nine-month net profit dipped 58.6% to RM193.92 million from RM468.2 million while revenue was down 32.6% to RM3.91 billion from RM5.8 billion.
"We are cautiously optimistic that the steady price range of RM2,200 to RM2,400 for crude palm oil (CPO) could sustain until the end of the year on the back of steady overseas demand as world economies recover. A factor that bodes well for the CPO price would be the potential further weakness of the US dollar," Boustead said.
On its heavy industries unit, the company said it would continue developing its defence and commercial businesses, and pursue strategic partnerships with foreign parties to promote the TECHNOLOGY [] transfer.
Meanwhile, Boustead's property division's earnings are expected to be driven by current developments at its Mutiara Damansara and Mutiara Rini townships, besides the company's commercial and retail PROPERTIES [].
The expansion of its hotel operations which now include the five-star Royale Chulan Hotel and Royale Bintang Seremban are anticipated to further boost revenue for the conglomerate's hospitality arm.
Boustead intends to reward its shareholders with a third interim dividend of 7.5 sen per share less 25% income tax.
http://www.theedgemalaysia.com/business-news/154259-boustead-3q-net-profit-down-48-y-o-y.html
Boustead’s 3Q profit down 47% y-o-y
Tags: Affin Group | Boustead | Lodin Wok Kamaruddin
Written by Isabelle Francis
Tuesday, 24 November 2009 10:28
KUALA LUMPUR: BOUSTEAD HOLDINGS BHD [] posted a net profit of RM86.2 million in the third quarter (3Q) ended Sept 30, 2009, down 47% from RM164 million a year earlier but up 84% from the preceding quarter’s earnings of RM63 million.
Revenue dropped 27% year-on-year (y-o-y) to RM1.42 billion from RM1.95 billion but was up 11% from the preceding quarter. Basic earnings per share (EPS) fell to 12.41 sen from 25.48 sen a year earlier.
It declared a third interim dividend of 7.5 sen per share less tax, bringing the total to 17.5 sen or 35% per share less tax for the current financial year ending Dec 31, 2009. The latest dividend is payable on Dec 29, 2009.
For the nine-month period, net profit fell 59% to RM193.92 million from RM468.2 million a year earlier, while revenue dipped 33% to RM3.91 billion from RM5.8 billion.
EPS fell to 16.55 sen from 48.36 sen, partly due to the dilutive effect of a rights issue.
“Clearly the tide and sentiments are turning by virtue of the fact that our earnings are up (quarter-on-quarter). The sectors of the economy we are involved in, namely the consumer and the heavy industries segments bode well for the group while our PLANTATION []s continue to be a steady revenue generator and profit contributor.
“Our balance sheet looks strong given our recent rights issue which generated proceeds in excess of RM700 million. Our paid-up capital has increased to RM456 million and our gearing ratio has dropped significantly to 0.8 from 1.2 times. In essence, our financial strength is strong while our prospects look better,” said group managing director Tan Sri Lodin Wok Kamaruddin in a statement yesterday.
Boustead told Bursa Malaysia yesterday its highest profit earner — the heavy industries division — contributed a pre-tax profit of RM113 million for the nine-month period versus RM233.1 million a year earlier due to slower progress of work and cost escalation.
Its second-largest profit contributor, the plantation division, contributed a pre-tax profit of RM50.7 million versus RM260.8 million.
Boustead said the division achieved an average palm oil price of RM2,172 per tonne versus RM3,103 per tonne previously. Fresh fruit bunch harvest totalling 827,850 tonnes was 5% lower than last year.
It said its property division’s pre-tax profit of RM58.9 million for the period was 44% lower than last year’s. Profit from its hotel operation was lower due to the start-up cost of the recently opened Royale Chulan Hotel. It added that the property development segment profit was also lower, due to the absence of corporate lot sales.
Boustead said its finance and investment division reported an improved pre-tax profit of RM29.6 million.
It noted that BH Insurance posted a 62% higher pre-tax profit of RM24.5 million, mainly due to the increase in underwriting and investment income.
Meanwhile, it said the Affin Group posted a better pre-tax profit of RM383.2 million versus RM288.6 million a year earlier, due to improved net interest and Islamic banking income, while loan provisions were also lower.
Boustead said the trading division, meanwhile, posted a lower profit of RM21.5 million. The division gained profits from its petroleum retail unit Boustead Petroleum Marketing Sdn Bhd (BHPetrol), and from the LCCT Baggage Handling system project.
On its outlook,
This article appeared in The Edge Financial Daily, November 24, 2009.
Written by Chong Jin Hun
Monday, 23 November 2009 15:57
KUALA LUMPUR: BOUSTEAD HOLDINGS BHD []'s third quarter (3Q) net profit fell 47.5% year-on-year, dragged down by lower income from its PLANTATION [], heavy industries, real estate and hotel operations.
In a statement to the exchange today, Boustead said net profit declined to RM86.16 million in 3Q ended September from RM164 million, while revenue dropped 27.2% to RM1.42 billion from RM1.95 billion.
Cumulative nine-month net profit dipped 58.6% to RM193.92 million from RM468.2 million while revenue was down 32.6% to RM3.91 billion from RM5.8 billion.
"We are cautiously optimistic that the steady price range of RM2,200 to RM2,400 for crude palm oil (CPO) could sustain until the end of the year on the back of steady overseas demand as world economies recover. A factor that bodes well for the CPO price would be the potential further weakness of the US dollar," Boustead said.
On its heavy industries unit, the company said it would continue developing its defence and commercial businesses, and pursue strategic partnerships with foreign parties to promote the TECHNOLOGY [] transfer.
Meanwhile, Boustead's property division's earnings are expected to be driven by current developments at its Mutiara Damansara and Mutiara Rini townships, besides the company's commercial and retail PROPERTIES [].
The expansion of its hotel operations which now include the five-star Royale Chulan Hotel and Royale Bintang Seremban are anticipated to further boost revenue for the conglomerate's hospitality arm.
Boustead intends to reward its shareholders with a third interim dividend of 7.5 sen per share less 25% income tax.
http://www.theedgemalaysia.com/business-news/154259-boustead-3q-net-profit-down-48-y-o-y.html
Boustead’s 3Q profit down 47% y-o-y
Tags: Affin Group | Boustead | Lodin Wok Kamaruddin
Written by Isabelle Francis
Tuesday, 24 November 2009 10:28
KUALA LUMPUR: BOUSTEAD HOLDINGS BHD [] posted a net profit of RM86.2 million in the third quarter (3Q) ended Sept 30, 2009, down 47% from RM164 million a year earlier but up 84% from the preceding quarter’s earnings of RM63 million.
Revenue dropped 27% year-on-year (y-o-y) to RM1.42 billion from RM1.95 billion but was up 11% from the preceding quarter. Basic earnings per share (EPS) fell to 12.41 sen from 25.48 sen a year earlier.
It declared a third interim dividend of 7.5 sen per share less tax, bringing the total to 17.5 sen or 35% per share less tax for the current financial year ending Dec 31, 2009. The latest dividend is payable on Dec 29, 2009.
For the nine-month period, net profit fell 59% to RM193.92 million from RM468.2 million a year earlier, while revenue dipped 33% to RM3.91 billion from RM5.8 billion.
EPS fell to 16.55 sen from 48.36 sen, partly due to the dilutive effect of a rights issue.
“Clearly the tide and sentiments are turning by virtue of the fact that our earnings are up (quarter-on-quarter). The sectors of the economy we are involved in, namely the consumer and the heavy industries segments bode well for the group while our PLANTATION []s continue to be a steady revenue generator and profit contributor.
“Our balance sheet looks strong given our recent rights issue which generated proceeds in excess of RM700 million. Our paid-up capital has increased to RM456 million and our gearing ratio has dropped significantly to 0.8 from 1.2 times. In essence, our financial strength is strong while our prospects look better,” said group managing director Tan Sri Lodin Wok Kamaruddin in a statement yesterday.
Boustead told Bursa Malaysia yesterday its highest profit earner — the heavy industries division — contributed a pre-tax profit of RM113 million for the nine-month period versus RM233.1 million a year earlier due to slower progress of work and cost escalation.
Its second-largest profit contributor, the plantation division, contributed a pre-tax profit of RM50.7 million versus RM260.8 million.
Boustead said the division achieved an average palm oil price of RM2,172 per tonne versus RM3,103 per tonne previously. Fresh fruit bunch harvest totalling 827,850 tonnes was 5% lower than last year.
It said its property division’s pre-tax profit of RM58.9 million for the period was 44% lower than last year’s. Profit from its hotel operation was lower due to the start-up cost of the recently opened Royale Chulan Hotel. It added that the property development segment profit was also lower, due to the absence of corporate lot sales.
Boustead said its finance and investment division reported an improved pre-tax profit of RM29.6 million.
It noted that BH Insurance posted a 62% higher pre-tax profit of RM24.5 million, mainly due to the increase in underwriting and investment income.
Meanwhile, it said the Affin Group posted a better pre-tax profit of RM383.2 million versus RM288.6 million a year earlier, due to improved net interest and Islamic banking income, while loan provisions were also lower.
Boustead said the trading division, meanwhile, posted a lower profit of RM21.5 million. The division gained profits from its petroleum retail unit Boustead Petroleum Marketing Sdn Bhd (BHPetrol), and from the LCCT Baggage Handling system project.
On its outlook,
- Boustead said its most lucrative business, the heavy industries division, will continue with its effort in developing its defence and commercial businesses. It will also establish more partnerships.
- The company is cautiously optimistic that CPO prices could sustain at the RM2,200 to RM2,400 level till year-end on the back of steady overseas demand as economies around the world recover.
- It said a factor that bodes well for the CPO price would be the potential for further weaknesses in the US dollar.
- It added that the property division’s earnings would be driven by the ongoing developments at Mutiara Damansara and Mutiara Rini townships and the division’s stable of commercial and retail PROPERTIES [].
- The company said that the expansion of the hotel activities, which now include the five-star Royale Chulan Hotel and Royale Bintang Seremban are expected to further increase revenue for the hotel division.
This article appeared in The Edge Financial Daily, November 24, 2009.
Sunday 18 October 2009
Friday 25 September 2009
Boustead
Share Price Performance
High Low
Prices 1 Month
3.590 (25-Aug-09) 3.470 (04-Sep-09)
Prices 3 Months
4.100 (16-Jul-09) 3.470 (04-Sep-09)
Prices 12 Months
4.660 (30-Sep-08) 2.180 (28-Oct-08)
Volume 12 Months
39,296 (30-Oct-08) 51 (24-Sep-08)
Last Updated: Friday ,September 25 2009 3:30 pm
Bursa Malaysia Summary
Composite: 1215.66
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