Announcement • Sep 27
Singapore Exchange Regulation Directs Boustead Projects to Delist Singapore Exchange Regulation (SGX RegCo) has issued a directive on September 26, 2023 for the delisting of Boustead Projects Limited, as the issuer has not ensured that at least 10% of the total number of issued shares are held by the public. In its notice of compliance, the frontline regulator also directed Boustead Projects and/or Boustead Singapore Limited to make an exit offer to the shareholders that is "fair and reasonable", with the proposal to be provided within one month from September 26, 2023. Boustead Singapore in February announced a voluntary unconditional general offer to privatise its real estate unit, Boustead Projects. The initial offer price was SGD 0.90 per share, and this was subsequently raised to SGD 0.95 per share on February 22. The independent financial adviser (IFA), PrimePartners Corporate Finance, opined that the offer was "not fair but reasonable". In its report, the IFA noted that the final offer price of SGD 0.95 was not within its final estimated valuation range of between SGD 1.17 and SGD 1.38. At the close of the offer, Boustead Singapore and its concert parties owned or controlled an aggregate of 299.2 million shares, representing approximately 95.5% of the total number of shares in the company. As less than 10% of Boustead Project shares were held by the public, the counter was suspended in March. Boustead Singapore had disclosed previously that it would not be able to avail itself to the powers of compulsory acquisition under the Companies Act. Under section 215(1) of the Companies Act, an offeror who acquires at least 90% of the total number of shares (other than those already held by the offeror, its related corporations or nominees), would be entitled to exercise the right to compulsorily acquire all the shares from shareholders who have not accepted the offer. The offer for Boustead Projects did not extend to 19.28% of the shares that were held through nominees by Chairman And Chief Executive Officer of Boustead Singapore, Wong Fong Fui. SGX RegCo said in March that Boustead Projects must restore its free float after its shares are suspended at the close of the takeover offer by its parent company. Otherwise, Boustead Projects would be directed to delist and provide an exit offer which is deemed fair and reasonable by an IFA. Under listing rules, exit offers in conjunction with voluntary delistings must not only be reasonable, but also fair. An offer is deemed fair if the price offered is equal to or greater than the value of the securities. Boustead Projects was granted two extensions to explore options to comply with listing rules, but did not restore its free float by the September 26 deadline, leading to the notice of compliance and delisting. Shares of Boustead Singapore rose 1.2% on September 26, 2023 to SGD 0.865, before the announcement. Raphael, SGX RegCo directs Boustead Projects to delist, with exit offer that is fair and reasonable. Announcement • May 19
Boustead Projects Limited to Report Fiscal Year 2023 Results on May 25, 2023 Boustead Projects Limited announced that they will report fiscal year 2023 results at 5:00 PM, Singapore Standard Time on May 25, 2023 Major Estimate Revision • Nov 22
Consensus revenue estimates increase by 15% The consensus outlook for revenues in 2023 has improved. 2023 revenue forecast increased from S$214.6m to S$246.2m. EPS estimate increased from S$0.04 to S$0.05 per share. Net income forecast to grow 42% next year vs 23% growth forecast for Construction industry in Singapore. Consensus price target up from S$1.25 to S$1.35. Share price fell 4.8% to S$0.80 over the past week. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 2 highly experienced directors. Independent Non-Executive Director Kwet Yew Yong was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 13
First half 2023 earnings released: EPS: S$0.024 (vs S$0.019 in 1H 2022) First half 2023 results: EPS: S$0.024 (up from S$0.019 in 1H 2022). Revenue: S$117.7m (down 34% from 1H 2022). Net income: S$7.67m (up 30% from 1H 2022). Profit margin: 6.5% (up from 3.3% in 1H 2022). The increase in margin was driven by lower expenses. Revenue is expected to decline by 4.6% p.a. on average during the next 3 years, while revenues in the Construction industry in Asia are expected to grow by 12%. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Announcement • Nov 05
Boustead Projects Limited to Report Q2, 2023 Results on Nov 10, 2022 Boustead Projects Limited announced that they will report Q2, 2023 results at 5:00 PM, Singapore Standard Time on Nov 10, 2022 Upcoming Dividend • Jul 28
Upcoming dividend of S$0.01 per share Eligible shareholders must have bought the stock before 04 August 2022. Payment date: 18 August 2022. Payout ratio is a comfortable 5.5% and this is well supported by cash flows. Trailing yield: 1.1%. Lower than top quartile of Singaporean dividend payers (6.1%). Lower than average of industry peers (3.1%). Reported Earnings • Jul 06
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: S$0.036 (down from S$0.42 in FY 2021). Revenue: S$339.1m (up 13% from FY 2021). Net income: S$11.3m (down 91% from FY 2021). Profit margin: 3.3% (down from 44% in FY 2021). Revenue exceeded analyst estimates by 3.9%. Earnings per share (EPS) also surpassed analyst estimates by 9.1%. Over the next year, revenue is expected to shrink by 37% compared to a 17% growth forecast for the industry in Singapore. Over the last 3 years on average, earnings per share has increased by 49% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • Jul 05
Boustead Projects Limited, Annual General Meeting, Jul 28, 2022 Boustead Projects Limited, Annual General Meeting, Jul 28, 2022, at 10:30 China Standard Time. Agenda: To receive and adopt the Directors' Statement and Audited Financial Statements for the year ended 31 March 2022 and the Independent Auditors' Report thereon; to approve a final tax-exempt (one-tier) dividend of 0.2 cents per ordinary share for the year ended 31 March 2022; to approve a special tax-exempt (one-tier) dividend of 0.8 cents per ordinary share for the year ended 31 March 2022; to re-elect the following directors retiring under Article 94 of the Company's Constitution: Mr Tam Chee Chong and Professor Yong Kwet Yew; to approve directors' fees of up to $300,000 for the financial year ending 31 March 2023, payable quarterly in arrears (2022: $280,000); and to consider other matters. Announcement • Jul 02
Boustead Projects Appoints Yong Kwet Yew Has as Member of the Audit & Risk Committee The Board of Directors of Boustead Projects Limited announced that Professor Yong Kwet Yew has been appointed as a member of the Audit & Risk Committee ("ARC") of the Company with effect from 1 July 2022. Currently, he is a member of both the Nominating Committee and Remuneration Committee. In forming its opinion, the Board took into consideration that Professor Yong has been attending all of the ARC meetings since his appointment to the Board. During this period, he has made useful contributions to the ARC meetings. The Board also views that his appointment as an additional member will further strengthen the ARC, especially in helping the Board to manage risks in the Engineering & Construction Business. The Board considers Professor Yong to be independent for the purposes of Rule 704(8) of the Listing Manual of the Singapore Exchange Securities Trading Limited. The Audit Committee of the Company now comprises the following Independent Non-Executive Directors: Tam Chee Chong (Chairman); John Lim Kok Min; Chong Lit Cheong; Professor Yong Kwet Yew. Price Target Changed • Jun 09
Price target decreased to S$1.25 Down from S$1.40, the current price target is provided by 1 analyst. New target price is 39% above last closing price of S$0.90. Stock is down 28% over the past year. The company is forecast to post earnings per share of S$0.038 for next year compared to S$0.036 last year. Board Change • Jun 02
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 2 highly experienced directors. Independent Non-Executive Director Kwet Yew Yong was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • May 26
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: S$0.036 (down from S$0.42 in FY 2021). Revenue: S$339.1m (up 13% from FY 2021). Net income: S$11.3m (down 91% from FY 2021). Profit margin: 3.3% (down from 44% in FY 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 3.9%. Earnings per share (EPS) missed analyst estimates by 100%. Over the next year, revenue is expected to shrink by 29% compared to a 16% growth forecast for the industry in Singapore. Over the last 3 years on average, earnings per share has increased by 49% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • May 19
Boustead Projects Limited to Report Fiscal Year 2022 Results on May 25, 2022 Boustead Projects Limited announced that they will report fiscal year 2022 results After-Market on May 25, 2022 Announcement • Apr 03
Boustead Projects Limited Announces Resignation of Lum Wai Meng as Chief Operating Officer Boustead Projects Limited announced the resignation of Lum Wai Meng as Chief Operating Officer. Mr. Lum Wai Meng ("Mr. Lum") has resigned to pursue his personal interest and is currently serving his notice until 30 June 2022. Reported Earnings • Nov 15
First half 2022 earnings released: EPS S$0.019 (vs S$0.007 loss in 1H 2021) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2022 results: Revenue: S$179.1m (up 104% from 1H 2021). Net income: S$5.90m (up S$8.15m from 1H 2021). Profit margin: 3.3% (up from net loss in 1H 2021). Over the last 3 years on average, earnings per share has increased by 70% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment deteriorated over the past week After last week's 16% share price decline to S$1.10, the stock trades at a forward P/E ratio of 46x. Average forward P/E is 10x in the Construction industry in Asia. Total returns to shareholders of 44% over the past three years. Upcoming Dividend • Jul 29
Upcoming dividend of S$0.15 per share Eligible shareholders must have bought the stock before 05 August 2021. Payment date: 18 August 2021. Trailing yield: 0.7%. Lower than top quartile of Singaporean dividend payers (5.0%). Lower than average of industry peers (2.3%). Reported Earnings • Jul 08
Full year 2021 earnings released: EPS S$0.42 (vs S$0.072 in FY 2020) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2021 results: Revenue: S$301.4m (down 29% from FY 2020). Net income: S$131.7m (up 493% from FY 2020). Profit margin: 44% (up from 5.2% in FY 2020). Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Jun 01
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from S$292.4m to S$306.1m. EPS estimate fell from S$0.054 to S$0.024 per share. Net income forecast to shrink 94% next year vs 24% growth forecast for Construction industry in Singapore . Consensus price target up from S$1.33 to S$1.40. Share price rose 7.2% to S$1.19 over the past week. Reported Earnings • May 27
Full year 2021 earnings released The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2021 results: Revenue: S$301.4m (down 29% from FY 2020). Net income: S$131.7m (up 493% from FY 2020). Profit margin: 44% (up from 5.2% in FY 2020). The increase in margin was driven by lower expenses. Valuation Update With 7 Day Price Move • Jan 07
Investor sentiment improved over the past week After last week's 27% share price gain to S$1.02, the stock is trading at a trailing P/E ratio of 30.7x, up from the previous P/E ratio of 24.2x. This compares to an average P/E of 15x in the Construction industry in Singapore. Total returns to shareholders over the past three years are 21%. Is New 90 Day High Low • Jan 04
New 90-day high: S$0.95 The company is up 30% from its price of S$0.73 on 06 October 2020. The Singaporean market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Construction industry, which is up 5.0% over the same period. Major Estimate Revision • Jan 04
Analysts update estimates The 2021 consensus revenue estimate was lowered from S$255.5m to S$248.4m. Earnings per share (EPS) increased from S$0.024 to S$0.45 for the same period. Net income is expected to grow by 649% next year compared to 18% growth forecast for the Construction industry in Singapore. The consensus price target of S$1.33 was unchanged from the last update. Share price is up 18% to S$0.95 over the past week. Is New 90 Day High Low • Nov 20
New 90-day high: S$0.82 The company is up 4.0% from its price of S$0.79 on 21 August 2020. The Singaporean market is up 7.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Construction industry, which is up 3.0% over the same period. Reported Earnings • Nov 14
First half 2021 earnings released: S$0.007 loss per share The company reported a poor first half result with weaker earnings, revenues and control over expenses. First half 2021 results: Revenue: S$87.7m (down 44% from 1H 2020). Net loss: S$2.25m (down 123% from profit in 1H 2020). Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Oct 29
New 90-day low: S$0.69 The company is down 12% from its price of S$0.78 on 29 July 2020. The Singaporean market is down 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Construction industry, which is down 2.0% over the same period. Is New 90 Day High Low • Oct 05
New 90-day low: S$0.72 The company is down 5.0% from its price of S$0.76 on 07 July 2020. The Singaporean market is down 7.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Construction industry, which is down 4.0% over the same period.