Boustead SP

Boustead S’pore: 2QFY15 net profit almost doubled to $17.5m, while revenue increased 14% to $129.7m, driven by a 16% increase in Engineering Services, Energy Related Engineering and Real Estate Solutions, and a 10% increase in Geo-Spatial Technology. Gross profit margin improved 4ppt to 38%. Interim DPS of 2¢ maintained. An 87% decline in other losses to $0.4m also buoyed bottom line. YTD order wins of $285m brings order book backlog to $441m. Key business updates include a partnership with a Middle East sovereign wealth fund to develop and redevelop modern logistics and industrial properties in Singapore. Aside, a JV to develop modern factories in Iskandar was kickstarted. BVPS of $0.668 translates to P/B of 2.8x. Boustead S’pore is trading at annualized 2QFY15 P/E of 13.6x. Interim DPS of 2¢ maintained.