Towards Financial Freedom
BBR - Better 2H Seen As Projects Pick Up Speed
BBR's 2Q13 PATMI was 4.7% lower y-o-y at SGD2.8m, even as revenue jumped 76.5% to SGD104.3m, largely due to lower margins from existing projects and lower revenue from property development. While it has a healthy orderbook, BBR is facing cost pressures amid moderate economic growth. That said, BBR's capabilities put it in good stead to secure new projects. Maintain BUY.
- To recognize profits from property development in 3Q13. BBR expects its Bliss @Kovan project (92%-sold) to be at least 20% completed by end-3Q13, whereupon it would start recognizing the profits from this project (including those relating to the completion of the initial 20%). Thus this would boost PATMI and margins from 3Q13. As the project involves property development, there was zero margin from this division in 2Q13. This dragged down the company's overall gross margin to 6.6% (from 14.6% in 2Q12).
- More activity from property development. BBR and its JV partners were recently awarded a 217,298.4 sq ft piece of land by the HDB. This leasehold land is slated for the development of a 500-unit executive condominium (EC). BBR has a 35% stake in this JV. Management expects to launch the project in 2014, with temporary occupation permit (TOP) expected to be obtained in 2016.
Source: OSK
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
Market Buzz
More articles on Towards Financial Freedom
Duty Free International Ltd. - A duty-free giant in the making
Created by kiasutrader | Oct 17, 2016
Cityneon Holdings - 'Avengers' showcasing in the Land Down Under
Created by kiasutrader | Jun 07, 2016
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
New Update. Discover investment communities that resonate with your ideas
Trade Confidently & Analyze Charts Conveniently - Download VCPlus IOS & Android App Now!
Latest Videos
Apps
Top Articles
1
RHB Investment Research Reports
ST Engineering - Rolling Forward Our Valuation; Reiterate BUY
2
SGX Market Dialogues
Kopi-C With GuocoLand’s Group CEO: ‘We Have Twin Engines for Growth’
3
CEO Morning Brief
Singapore Home Sales Set for Worst Year Since Financial Crisis
4
CEO Morning Brief
DBS Posts 300% Growth in Semi-liquid Fund Sales in Greater China
5
CEO Morning Brief
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
