Boustead reported revenue of S$129.7m in 3Q14, down 8% YoY. Among the four key business divisions, the energy engineering division recorded revenue of S$49.5m, up 57% YoY. The industrial real estate division recorded S$51.0m, down 34% YoY. The water engineering division recorded revenue of S$2.2m, down 63% YoY. The geo-spatial division recorded S$27m, unchanged. The company reported core PATMI of S$41.0m and core EPS of 3.6 cents, up 7.0 YoY.

After a spike to a historical high of S$475m in 1Q14, Boustead’s order book backlog has fallen to S$371m in 3Q14 due to slower order wins.

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I am heartened that the company has been able to improve EPS even though revenue has gone down. The management is prudent and the company valuation is attractive. However, the order book is a key concern and I will …