No plans to privatise BHIC, says Boustead

Larger Smaller Reset KUALA LUMPUR (Dec 21): BOUSTEAD HOLDINGS BHD [] has denied a news report that it was considering taking BOUSTEAD HEAVY INDUSTRIES CORP []oration Bhd private.

'We would like to clarify that Boustead is currently not considering any proposal to privatise Boustead Heavy Industries Corporation Bhd,' the conglomerate told Bursa Malaysia Securities Bhd in a one-paragraph statement on Wednesday.

Citing unnamed sources, it was reported by a local newspaper that Boustead was planning to take BHIC private 'driven largely by the latter's seemingly cheap valuations especially in light of the recent RM9 billion vessel contract it has been awarded'.

BHIC's associate Boustead Naval Shipyard Sdn Bhd was last week awarded a contract with a ceiling of RM9 billion by the Defence Ministry to design, build and deliver six second-generation patrol vessels or Littoral combat ships.

BHIC shares jumped 13 sen this morning to RM3.31 while Boustead fell two sen to RM5.52.

CIMB Research has technical sell on Boustead

KUALA LUMPUR: CIMB Equities Research has a technical sell on BOUSTEAD HOLDINGS BHD [] at RM5.28'' at which it is trading at a FY12 price-to-earnings of 10.6 times and price-to-book value of 1.1 times.

It said on Wednesday, Sept 14 Boustead appears to be sitting precariously above its key support at RM5.20.

'Any deep violation of this support would be very negative for the stock,' it said.

CIMB Research said the technical landscape is deteriorating after prices tumbled through its bearish flag pattern. MACD is about to reconfirm its sell signal while its RSI has already turned and moved lower.

'As long as prices remain below its 30-day and 50-day SMA, we remain bearish on the stock. A break below RM5.20 would likely send prices reeling towards RM4.70 and RM4.40 next,' it said.

Boustead's 2Q earnings up 26.4% to RM185.2m

KUALA LUMPUR: BOUSTEAD HOLDINGS BHD []'s earnings rose 26.4% to RM185.20 million in the second quarter ended June 30, 2011 from RM146.5 million a year ago boosted by the inclusion of Paharmaniaga and also the manufacturing and trading division.

It said on Thursday, Aug 18 its revenue increased by 56% to RM2.225 billion from RM1.425 billion a year ago. Earnings per share were 19.7 sen versus 15.67 sen.

In the first half, its net profit increased by 25.6% to RM297.40 million from RM236.70 million while turnover rose by 28% to RM3.812 billion from RM2.978 billion.

'Higher sales volume had contributed to a 25% increase in revenue for the manufacturing and trading division, while the PLANTATION [] revenue had increased by 25% on stronger palm product prices.

'The first time consolidation of Pharmaniaga during the second quarter had also boosted revenue of the pharmaceutical division which had chalked up sales of RM461 million (2010: RM34 million),' it said.

Boustead said for the cumulative period, the plantation division contributed a significantly higher pre-tax operating profit of RM172.8 million (2010: RM92.4 million).

There was a further gain of RM94.6 million from the disposal of plantation assets to AL-HADHARAH BOUSTEAD REIT []. During the half year, the division achieved an average palm oil price of RM3,441 per tonne, an increase of RM946 or 38% from the average of RM2,495 per tonne a year ago.