Latest news with #BousteadSingapore
Yahoo
2 days ago
- Business
- Yahoo
Here's Why Boustead Singapore (SGX:F9D) Has Caught The Eye Of Investors
The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up. If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Boustead Singapore (SGX:F9D). While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. That makes EPS growth an attractive quality for any company. Boustead Singapore's shareholders have have plenty to be happy about as their annual EPS growth for the last 3 years was 45%. That sort of growth rarely ever lasts long, but it is well worth paying attention to when it happens. Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. We note that while EBIT margins have improved from 12% to 18%, the company has actually reported a fall in revenue by 31%. While not disastrous, these figures could be better. You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image. Check out our latest analysis for Boustead Singapore While it's always good to see growing profits, you should always remember that a weak balance sheet could come back to bite. So check Boustead Singapore's balance sheet strength, before getting too excited. Seeing insiders owning a large portion of the shares on issue is often a good sign. Their incentives will be aligned with the investors and there's less of a probability in a sudden sell-off that would impact the share price. So as you can imagine, the fact that Boustead Singapore insiders own a significant number of shares certainly is appealing. In fact, they own 46% of the shares, making insiders a very influential shareholder group. Shareholders and speculators should be reassured by this kind of alignment, as it suggests the business will be run for the benefit of shareholders. And their holding is extremely valuable at the current share price, totalling S$301m. This is an incredible endorsement from them. Boustead Singapore's earnings per share growth have been climbing higher at an appreciable rate. This level of EPS growth does wonders for attracting investment, and the large insider investment in the company is just the cherry on top. At times fast EPS growth is a sign the business has reached an inflection point, so there's a potential opportunity to be had here. So based on this quick analysis, we do think it's worth considering Boustead Singapore for a spot on your watchlist. We should say that we've discovered 2 warning signs for Boustead Singapore that you should be aware of before investing here. There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a tailored list of Singaporean companies which have demonstrated growth backed by significant insider holdings. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Times
26-05-2025
- Business
- Business Times
Boustead's H2 profit up 48 per cent to S$59.1 million
[SINGAPORE] Engineering and technology group Boustead Singapore 's net profit for the six months ended Mar 31, 2024 increased 58 per cent to S$59.1 million compared to the year-ago period. This came despite revenue decreasing 42 per cent to S$231.9 million over the same time frame. On a per-share basis, earnings for the half were 12 Singapore cents, up from 7.8 Singapore cents in the year-ago period. The mainboard-listed company said in a bourse filing on Monday (May 26) that profits had increased despite a dip in revenue due to lower income tax expenses and a one-off gain. The drop in revenue was a result of significantly lower revenue from Boustead Projects and lower revenue from the energy engineering division on lower order backlog carried forward at the end of FY2024. For the six months, income tax expense was down 38 per cent to S$9.2 million, while there was a S$29 million gain on the non-cash transfer of the Boustead Projects fund management business to UIB. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up In March, Boustead agreed to transfer its fund and property-management businesses to Hong Kong-based real estate company Unified Industrial. As part of the agreement, Boustead Singapore's subsidiary BP-Unity took a 24.1 per cent stake in Unified Industrial. For the 2025 financial year, the group's net profit was up 48 per cent to S$95 million, from S$64.2 million in FY2024, while revenue was down 31 per cent to S$527.1 million from S$767.6 million in FY2024. Full-year revenue was lower and profit higher compared to FY2024, mainly due to the same factors above. For FY2025 by segment revenue, the group's geospatial business increased 4 per cent to S$221.4 million; its real estate solutions business revenue was down 64 per cent to S$134.3 million; its energy engineering business down 9 per cent to S$158.9 million; and its healthcare segment up 14 per cent to S$12.1 million. A final dividend of four Singapore cents per share has been proposed, with an additional special dividend of two Singapore cents per share. The total dividend proposed and paid for FY2025 will be 7.5 Singapore cents, compared to 5.5 Singapore cents in FY2024. The group said that its real estate solutions segment was 'affected by the significantly lower order backlog carried forward at the end of FY2024 and hampered by challenging and severe business conditions and business development activities'. Group gross profit in FY2025 was 3 per cent higher at S$233.3 million, with gross margin of 44 per cent, compared to 30 per cent in the previous year, 'due to good cost management on executed projects'. The group notes that for a comparative review, after adjusting for other gains/losses, impairments and other exceptional adjustments, all net of non-controlling interests, net profit for FY2025 would have been 8 per cent higher year-on-year. Going forward, it said that elevated geopolitical tensions and a protectionist trading environment threatens global manufacturing supply chains and may cause energy market disruptions that would impact the core businesses of the group, though it remains cautiously optimistic. Shares of the counter ended trading at S$1.04, down S$0.01 or 1 per cent, before the update.
Yahoo
15-05-2025
- Business
- Yahoo
Owning 46% in Boustead Singapore Limited (SGX:F9D) means that insiders are heavily invested in the company's future
Boustead Singapore's significant insider ownership suggests inherent interests in company's expansion 53% of the business is held by the top 2 shareholders 18% of Boustead Singapore is held by Institutions Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. A look at the shareholders of Boustead Singapore Limited (SGX:F9D) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 46% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. So, insiders of Boustead Singapore have a lot at stake and every decision they make on the company's future is important to them from a financial point of view. In the chart below, we zoom in on the different ownership groups of Boustead Singapore. See our latest analysis for Boustead Singapore Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. We can see that Boustead Singapore does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Boustead Singapore's historic earnings and revenue below, but keep in mind there's always more to the story. Boustead Singapore is not owned by hedge funds. The company's CEO Fong Fui Wong is the largest shareholder with 44% of shares outstanding. With 8.8% and 4.9% of the shares outstanding respectively, FMR LLC and Fidelity International Ltd are the second and third largest shareholders. To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our most recent data indicates that insiders own a reasonable proportion of Boustead Singapore Limited. Insiders have a S$238m stake in this S$516m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently. The general public-- including retail investors -- own 36% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. It's always worth thinking about the different groups who own shares in a company. But to understand Boustead Singapore better, we need to consider many other factors. Take risks for example - Boustead Singapore has 2 warning signs (and 1 which is a bit concerning) we think you should know about. If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-04-2025
- Business
- Yahoo
Returns On Capital Are Showing Encouraging Signs At Boustead Singapore (SGX:F9D)
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. So when we looked at Boustead Singapore (SGX:F9D) and its trend of ROCE, we really liked what we saw. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. To calculate this metric for Boustead Singapore, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.16 = S$101m ÷ (S$1.1b - S$419m) (Based on the trailing twelve months to September 2024). Thus, Boustead Singapore has an ROCE of 16%. On its own, that's a standard return, however it's much better than the 9.1% generated by the Construction industry. Check out our latest analysis for Boustead Singapore While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you're interested in investigating Boustead Singapore's past further, check out this free graph covering Boustead Singapore's past earnings, revenue and cash flow. Boustead Singapore's ROCE growth is quite impressive. Looking at the data, we can see that even though capital employed in the business has remained relatively flat, the ROCE generated has risen by 92% over the last five years. So it's likely that the business is now reaping the full benefits of its past investments, since the capital employed hasn't changed considerably. On that front, things are looking good so it's worth exploring what management has said about growth plans going forward. To bring it all together, Boustead Singapore has done well to increase the returns it's generating from its capital employed. And a remarkable 128% total return over the last five years tells us that investors are expecting more good things to come in the future. So given the stock has proven it has promising trends, it's worth researching the company further to see if these trends are likely to persist. On a final note, we found 2 warning signs for Boustead Singapore (1 shouldn't be ignored) you should be aware of. While Boustead Singapore may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
