Boustead

Boustead: 4 core divisions- Real estate solutions, energy-related engineering, water and wastewater engineering and geo-spatial technology; all delivered good earnings, with the real estate division in particular- on its one-off gain from the sale of a storage company. Company operates in US and Middle-East. On its geo-spatial technology division, which distributes locational software used by govt agencies such as URA and PUB, Boustead is the exclusive distributor of the software for Australia, Singapore, Malaysia, Indonesia, Brunei, TImor Leste and Bangladesh. Division is counter-cyclical and has recorded 10 consecutive years of growth, as more govt agencies adopt or expand the use of the technology. Company has benefitted from the shale energy boom recently, together with the govt spending on infrastructure investments. Boustead recently won its first contract supplying heaters to a shale gas-fired petrochemical plant from an oil major in the US last year; and has since been receiving more enquiries. Mgmt feels that even after the run-up of 21% this year, they feel that share price don't reflect the cash and property assets in its balance sheet, as the Company's cash holdings itself are 35cents a share. Company currently trading at 7.6x P/E, 11.8x forward P/E