Boustead

Boustead: Counter has seen average trading volume slowly increasing, after its slew of contract wins in the recent period. Also, its valuation has risen to 7.6x trailing P/E, 2.4x P/B. Ex-cash holdings of $0.35/ share, however, the Group trades at 5.3x P/E, which is not reflective on its forward earnings growth; Boustead has a historical dividend yield of 4%. To reiterate, Company has benefitted from the shale energy boom recently, together with the govt spending on infrastructure investments. Group CEO also noted that given the current growth and profit trajectory, Boustead's full year net profit would "significantly surpass" that of its FY12 profit; All 4 segments under the Company have boosted its recent 3Q13 results. Group's FY13 ends 31 Mar. Boustead is a progressive global Infrastructure-related engineering services and geo-spatial technology group, with a focus on energy-related, water & wastewater engineering. Its geo-spatial technology segment provides geographic info and location intelligence solutions to effectively plan, deploy and manage key infrastructure and resources in countries. Amongst the brokerage houses, only Phillips covers the counter, and has initiated with a BUY with TP of $1.80, implying an upside of 40% on current price.