CGS-CIMB Research analyst Ong Khang Chuen has retained his ‘add’ rating for Boustead Singapore with a higher target price of $1.40 from $1.20 previously on the completion of its 52.8%-owned subsidiary Boustead Project’s value-unlocking exercise.

The exercise saw the injection of 14 industrial properties into Boustead Industrial Fund (BIF), which Ong says unlocks significant value from Boustead Project’s leasehold portfolio. He anticipates special dividends per share (DPS) being declared by Boustead Projects in the upcoming FY2021 ending March results announcement. 

“Given Boustead Singapore’s strong net cash position, we believe the payout will be passed on to its shareholders. Assuming 50% of net cash proceeds from Boustead Project’s asset disposal are paid out as special dividends, we estimate special DPS of 7 cents (c.8% yield) for Boustead Singapore,” he writes in a March 17 research note.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook