Boustead Singapore profit up at $388m in March

The company secured four contracts at a total value of $89 million.

This was a happy ending to the drought that started after the last order in November last year. Excluding a design-build-lease contract which is not accounted for in orderbook figures, the total value of the new contracts came up to $89m. As at end-March, Boustead’s outstanding orderbook stood at $388m of which $381m worth of contracts were secured in FY Mar12.

Here's more from a Maybank report:

One-time gains to bolster fourth-quarter results
After three disappointing quarters due to late start-up of projects, we expect Boustead to regain some lost ground in 4QFY Mar12. While revenue recognition of the main projects may still be slow, the fourth quarter should receive a fillip from net gains of $8.6m from the recent sale of 17 strata title units on the sixth and seventh floors of Boustead House and $2.2m from the sale of an aerospace facility to Hawker Pacific.

Industrial Real-estate to lead growth
The Industrial Real-estate segment secured $243m worth of contracts in FY Mar12. We estimate the outstanding unrecognised revenue for this segment at $260m, most of which would be recognised in FY Mar13. With a surge of contracts flowing in, this segment could be the key growth engine in FY Mar13.

Bright outlook for Energy-related Engineering segment
We believe that higher capex in the oil & gas sector on the back of sustained high energy demand and oil prices would also spawn more contract opportunities for this particular business segment in FY Mar13F.