BBR

BBR: FY12 results. Revenue at $274.2m, -34%, mainly due to decreased revenue from the Property Devt and General Construction segments. Revenue from the Specialised Engineering segment however increased, mainly due to more projects being secured and executed by a Malaysian subsidiary in FY12. Property Devt -- Lush on Holland Hill, which was fully sold, contributed significantly to FY11 revenue. Revenue contribution from this project decreased in FY12 as the project was substantially completed and TOP granted in Jul ‘12. General Consttruction -- Construction for Bliss@Kovan, BBR’s latest property development project, had just commenced and revenue contribution is not significant. FY11’s strong revenue from the segment was mainly attributable to several major projects in their active stage of construction. However, three major projects were completed in early 2012 while several new projects had just started. As a result, lower revenue was achieved in FY12 from this segment. Net profit at $13.0m, -36%, in line with the decline in revenue. Mgt notes, although moderate growth is expected for the Singapore economy and the construction sector, it expects the outlook for the construction industry to be challenging in the next 12 months with increasing competition and expected increases in labour and material costs. Expects construction gross margins to be lean and notes the shortage of skilled and unskilled workers may affect the future progress of projects. The group will continue to explore ways to enhance cost effectiveness and optimise efficiency in the mgt of potential and on-going projects. It will also continue to conduct feasibility studies to undertake new property development projects. Group order book stands at approx $960m, comprising civil engineering and building contracts predominantly in Singapore and Malaysia, lasting up to 2015. Mgt declared total div of 1.2 cts for FY12, +50% yoy, translating to 4.6% yield. This comprises a first and final div of 0.8 cts and special div of 0.4 cts. At $0.26 last close, the stock trades at 6.1x P/E, 0.74x P/B.