Excerpts from CGS CIMB report

Boustead Projects Ltd (SGX: AVM)

Boustead Projects (BP) reversed from losses in FY21 to post a core net profit of S$11.3m for FY22, above our expectations. While construction demand has improved, BP remains cautious in tendering due to escalating cost pressures. We think margins could improve in 2H23F. BP has a strong war chest to chart its next leg of growth by expanding its presence in Vietnam. Reiterate Add with a lower TP of S$1.25.

Boustead Projects FY22 results above expectations

BP’s FY22 core net profit of S$11.3m (FY21: S$3.1m loss) came in slightly above expectations at 109% of our forecast. While Engineering and Construction (E&C) segment saw margins negatively impacted by higher cost pressures, this was offset by higher profits in the real estate segment due to higher occupancy of asset portfolio which led to stronger recurring income, and capital recycling initiative...