Boustead Holdings

Boustead is one of Malaysian oldest conglomerates with over 70 subsidiaries and associated companies. Its operations are grouped into six core businesses, namely plantation, property, heavy industries, finance & investment, trading, and manufacturing & services.

A well-diversified group, Boustead is poised for a better year with a positive outlook for its core businesses. The plantation division’s performance will be stronger due to higher palm oil prices and the planned disposal of loss-making Indonesian operations.

Property earnings are secured from the recognition of profits from ongoing projects, Mutiara Damansara (in Petaling Jaya) and Mutiara Rini (in Johor), and recurring rental income. Its investment properties have the potential of being grouped together under one REIT to enable Boustead to realize the value of the assets.

The finance division opens a new chapter with The Bank of East Asia (00023 HK, HKD42.95, Buy) as a significant shareholder in the Affin Holdings (AHB MK, MYR2.05, Not Ranked) group.

The heavy industries division has over MYR3.0 bln orderbook (including the contracts to build the navy petrol vessels) to keep it busy in 2008 and 2009. It is now in a better financial position to seize the opportunities from the strong demand for shipbuilding and fabrication works amid tight shipyard space in the region.