Boustead Singapore

Boustead Singapore: 1QFY15 net profit fell 9% to $16.1m while revenue was shaved 2% to $126.5m, as Engineering services revenue fell 3% to $97.9m on the back of a growth in Energy-related engineering was offset by a slump in real estate solutions. Geo-spatial technology revenue, which climbed 4% to $28.6m, was supported by a recovery in Australia and stronger demand in SE Asia. Gross margin improved to 34% (+5ppt). Nevertheless, bottom line was weighed by a 58% fall in one-off gains. Over the quarter, Boustead has secured ~$50m of new contracts. Although this is comparatively slow, enquiries and order book backlog of $295m remain healthy. Boustead Singapore is trading at 14.4x annualized 1QFY15 P/E. Latest broker ratings: CIMB maintains Add with TP of $2.06