Maybank Kim Eng Research in an Apr 13 research report says: "Boustead Singapore experienced a surge in order win momentum with four new contracts secured in the month of March alone. Excluding a designbuild-lease contract which is not accounted for in orderbook figures, the total value of the new contracts came up to $89 million.
"As at end-March, Boustead’s outstanding orderbook stood at $388 million of which $381 million worth of contracts were secured in FY Mar12. This is higher than our initial forecast of $340 million. Boustead’s current ex-cash valuation at 4.9x FY Mar13F PER seems unjustified to us.
"After all, healthy enquiry pipelines may translate into more contract wins down the road. A net cash position of $153 million as at 3QFY Mar12 and expected dividend yield of 5.7%. Sum-of-the-part-based target price of $1.14.
"As at end-March, Boustead’s outstanding orderbook stood at $388 million of which $381 million worth of contracts were secured in FY Mar12. This is higher than our initial forecast of $340 million. Boustead’s current ex-cash valuation at 4.9x FY Mar13F PER seems unjustified to us.
"After all, healthy enquiry pipelines may translate into more contract wins down the road. A net cash position of $153 million as at 3QFY Mar12 and expected dividend yield of 5.7%. Sum-of-the-part-based target price of $1.14.
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