TICKER F9D.SI
ISIN SG1X13940751
Market cap. SGD
1,039,731,020
Shs outstanding 504,723,796
Boustead Singapore Limited, an investment holding company, provides energy-related engineering, real estate, and geospatial and healthcare technology solutions in Africa, the Asia Pacific, Australia and Oceania, Europe, the Middle East, and North and South America. The company designs, engineers, and supplies direct-fired process heater systems, waste heat recovery units, and related equipment for the oil and gas, petrochemical, and energy industries. It also designs, engineers, and supplies emergency shutdown and process control systems, including pneumatic and hydraulic, or safety programmable logic controller-based wellhead control panels and hydraulic power units; integrated control and safety shutdown systems; and topside automation systems, chemical injection skids, fire and gas systems, and supervisory control and data acquisition systems for the upstream oil and gas industries. In addition, the company offers water and wastewater treatment plants for the oil and gas, petrochemical, pharmaceutical, power, semiconductor, and special defense industries, as well as for municipal authorities. Further, it designs, engineers, and supplies mini-power plants, solid waste energy recovery plants, and related combustion technology; and provides design-and-build and development expertise for business parks and industrial developments. Additionally, the company offers geographic information systems and location intelligence solutions; and management, professional and training, project management, design, construction and property-related, private business trust, real estate trustee, property fund management, and data set services. It also distributes medical solutions for age-related chronic diseases and mobility issues, as well as Esri geospatial technology; holds, manages, and rents properties; and develops industrial spaces for lease/sale. The company was founded in 1828 and is headquartered in Singapore.
Return at exit: 85.6%
Revenue decline amid valuation concerns
• Rotated out as other opportunities show stronger revenue trajectory and value metrics. • Significant revenue decline of ~24% year-over-year raises concerns about near-term growth prospects, while quarterly revenue also contracted slightly (-0.4%). • EBITDA decreased by ~12%, suggesting pressure on operational performance despite the company maintaining a healthy 43% gross margin. • Trading at 97% of its 52-week high after a remarkable 102% one-year return, limiting further upside potential at current valuation levels. • Management has cautioned about lower margins on new orders in the energy engineering division, potentially constraining future profitability. • Positive dividend growth (37.5%) and reasonable dividend yield (2.8%) demonstrate financial stability and shareholder commitment. This change reflects portfolio rotation, not a sell signal.