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OCBC increases Boustead Singapore’s TP to $1.47 after ‘stellar’ FY2024 results

Felicia Tan
Felicia Tan • 2 min read
OCBC increases Boustead Singapore’s TP to $1.47 after ‘stellar’ FY2024 results
Boustead Singapore, on May 27, reported a net profit of $64.2 million for the FY2024, 42% higher y-o-y. Photo: The Edge Singapore
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OCBC Investment Research analyst Ada Lim has kept her “buy” call on Boustead Singapore after its results for the FY2024 ended March 31 surpassed her expectations.

Boustead Singapore, on May 27, reported a net profit of $64.2 million for the FY2024, 42% higher y-o-y. After adjusting for other gains and losses and impairments, which are net of non-controlling interests, the group’s net profit would have been up by 101% y-o-y instead.

Revenue for the year rose by 37% y-o-y to $767.6 million due to better contributions across most of its segments except healthcare.

To Lim, the group’s ability to rebuild its engineering order backlog will be “critical” for FY2025, especially for its real estate solutions division, which remains Boustead’s largest revenue contributor. The segment’s revenue rose by 30% y-o-y to $369.5 million as it delivered on a sizeable order backlog carried forward from FY2023.

“We have turned more conservative on our forecasts for new engineering orders in FY2025, with room for upside risk should there be continued positive contract win momentum in the next few months,” Lim writes in her May 30 report.

The analyst has lifted her fair value estimate to $1.47 from $1.20 after a good year for Boustead Singapore.

See also: Brokers’ Digest: Pan-United, Yangzijiang Shipbuilding, Raffles Medical Group, Frencken, Japfa, Oiltek, CDL, AEM, DFI

“The increase is largely driven by our expectations for a larger net cash position as at March 31, 2025, as well as a higher net asset value (NAV) for the real estate solutions division,” she says.

Shares in Boustead closed flat at $1.03 on May 30.

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