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Soilbuild Construction
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For_The_Next_Leg
Master |
23-Sep-2024 10:47
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Might be another looker once Fed drop rates, with order book building up!
https://www.smallcapasia.com/soilbuild-construction-2024/
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eric998
Supreme |
22-Sep-2024 18:47
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Consolidation is good for stable company as the share price not so easy to manipulate if above 50c. Otherwise risk is high for punters, shortists. Just my own thoughts.
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Grubber
Elite |
22-Sep-2024 16:05
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his full time job TD
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Zeliazelia
Member |
22-Sep-2024 15:16
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WHat lai liao??? Say things don't say half way. CB | ||||
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Stocky901
Supreme |
20-Sep-2024 17:35
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Once contra sellers have cleared their positions, can see Soilbuild slowly moving up to above 090 again. Patience needed.. 🤫
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Jajabing
Veteran |
20-Sep-2024 09:10
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Tio Bo? From past case studies, price movements and other companies cases.My opinion only, dun flame 🤣 | ||||
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Jajabing
Veteran |
20-Sep-2024 08:56
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Lets put all this into context. Consolidation are mostly done by loss making companies with too many shares in the market. or For companies with too many shares in the market which have turn profitable, and in this case Soilbuild. In any case once consolidation is done, share price normally tank by 20%. Of course short term this one cause pain to short term players and contra. But in the case of Soilbuild, profit margins are ultimately unchanged, and I will get the same dividends whether the share price is 1 dollar or 1 cent. So no issue at all. and price will rise again after the yearly profit announcemnet, I seriously dun see how a Billion dollar order book can result in loses, barring rare freak events. And also once soilbuild consolidate, 1 pip is 0.005 cent, no longer 0.001, Just 1 2 pips up and price back to normal. long term holders would normally prefer consolidation, can also take the chance to buy at immediate discount if u believe in the stock. More at risk is the chance of privatisation. where the Lims are already eligible. If its even a risk to those already holding with Ave prive below 0.086 (Today Price) in the first place. Why? There are no secrets, news will leak before actual event, and once news leak, price will shoot, as offered price is normally 1 or 2 pip above closing price or higher than the week MA. Brokers and Tading house will quietly trade the price up. And in this scenario, whoever is holding would huat a few pips. so why worry.Of coure if ur average price is still above today trading price, u run the risk lo. and for me the privatisation would mean a multi bagger turning into a single bagger haha, so dun like it also. But than again, in order for the owners to maximise their profit during privatisaton, they will try to tank the share price down before such an offer, so just have to watch for this. And dun compare seatrium with soilbuild, seatrium got scandal, that contributes a lot to share price rising so slowly or not at all after consolidation. Soilbuild is on the other end of the spectrum. Play contra of course can, just have to be very lucky to buy during the day just before the price shoot or what lo. IMHO, freak events do occur. But I have most of my money on this one. |
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Stocky901
Supreme |
20-Sep-2024 08:24
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Already said don't play contra on this counter and need to have cut loss plan.. 🤐
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biper66
Senior |
20-Sep-2024 07:36
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It?s not 51% freefloat
Father/son hold almost 80%
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kepoh88
Veteran |
20-Sep-2024 00:35
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The scary part is one day, they decide to CONSILIDATE 10 to 1 or 20 to 1 like Seatrium ,then jialat..!!
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Jajabing
Veteran |
19-Sep-2024 23:54
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Assuming direct extrapolation, 7.3 million profit 1H 14.6million whole year, 1.6 billion shares, assuming all profit distributed, share price 0.09, EPS 0.009, I'll take the 10 percent dividend returns anytime 🤣 . Given actual dividend is 0.003 is still 4% return by current share price. Still a bargain | ||||
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eric998
Supreme |
19-Sep-2024 20:39
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Company 1.6+ billions shares, 51% free float, not so easy to move up. | ||||
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Jajabing
Veteran |
19-Sep-2024 18:51
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Today most of the contra surge last week all cleared. New balance low seems to be 84-86. Ready for next round of push. Steady is good
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Grubber
Elite |
19-Sep-2024 18:28
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got pork chop eat lor
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Stocky901
Supreme |
19-Sep-2024 17:55
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Tomorrow opening gap up 090✌ ️ ✌ ️ | ||||
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biper66
Senior |
19-Sep-2024 17:19
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closing 8.6
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Joelton
Supreme |
19-Sep-2024 10:13
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Soilbuild Construction&rsquo s Remarkable Turnaround: Strengthening its Order Book as a Sustainable Builder
Once grappling with losses during COVID, Soilbuild Construction Group Ltd (SGX: S7P) (&ldquo Soilbuild Construction&rdquo ) has delivered a stunning financial and operational turnaround in recent years.
On top of that, Soilbuild Construction is leveraging its current momentum to tap into the growing opportunities in Singapore&rsquo s thriving construction industry as a sustainable builder with a strengthening growing order book.
In this article, we&rsquo ll explore Soilbuild Construction&rsquo s recent financial performance for first half of 2024, business model and competitive strengths to evaluate whether it presents a promising opportunity for investors.
About Soilbuild Construction
Based in Singapore, Soilbuild Construction is a leading builder with a long and successful track record of constructing a sterling award-winning portfolio of residential and business space properties.
With over four decades of experience, Soilbuild Construction has solidified its position as a leading construction company. The firm&rsquo s A1 ratings from the BCA for general building and civil engineering projects allow it to tender for projects of any scale. In addition, the Group also has BCA ratings that allow them to tender for civil engineering projects with a contract value of up to $105 million.
Precast Concrete Pte Ltd, a subsidiary of the Group, is one of the few licensed manufacturer of prefabricated and precast building components with automated manufacturing facilities in Singapore and manufacturing plant in Malaysia.
Notably, Soilbuild Construction&rsquo s multi-property sector approach diversifies its risks as it allows the Group to shift its focus should there be a slowdown in any particular sector of the property market.
Financial Turnaround: First Half Net Profit has Exceeded FY2023&rsquo s Net Profit
Soilbuild Construction&rsquo s remarkable financial turnaround is a central part of its story.
Revenue for 1HFY2024 grew by 19.5% to S$153.9 million, up from S$128.7 million in 1HFY2023. The Construction division remains a key revenue driver, contributing S$120.4 million, while the Precast and Prefabrication segment saw a phenomenal 114.9% growth to S$33.5 million.
Some of the key projects in the Construction division include:
DB Schenker Project: Construction of sustainable, energy-efficient logistics facilities at Greenwich Drive.
Soitec Project: Building of a high-tech manufacturing facility with cleanroom capabilities at Pasir Ris.
Toa Payoh HDB Project: A public housing development in Toa Payoh.
New Industrial Road Project: A five-storey industrial building.
In FY2023, the company reversed its fortunes, reporting a net profit of S$7.3 million after enduring losses in previous years due to adverse impact of COVID-19 pandemic on the Group&rsquo s construction and precast manufacturing operations, as the Group has had to navigate the challenging environment to deliver and complete projects that were secured before the onset of the pandemic.
Nevertheless, this upward trend has continued into 1HFY2024, where Soilbuild Construction has exceeded its full-year FY2023 profit in just six months, posting a net profit of S$7.4 million, a 444.5% surge compared to 1HFY2023&rsquo s S$1.4 million.
These results seemed to highlight the normalisation of the Group&rsquo s operating margins, while the Group continue to optimise its operating efficiencies.
Enhanced Financial Strength and Cash Flow
Soilbuild Construction&rsquo s financial health is further underscored by its growing cash flow and strengthened balance sheet.
During 1HFY2024, the Group generated S$18.6 million in positive operating cash flow, bolstered by ongoing projects and higher gross margins, which increased to 9.6% from 5.8% in 1HFY2023.
As of June 30, 2024, the Company&rsquo s total assets stood at S$267.1 million, with a healthy cash position of S$25.7 million. Additionally, the successful exercise of 179 million warrants by shareholders, including Executive Chairman Lim Chap Huat, injected an additional S$13.1 million into the company, further strengthening its cash reserves.
Expanding Order Book: Building for the Future
The recovery of Soilbuild Construction took place against the backdrop of a steadily growing construction industry in Singapore.
With a projected 2.7% CAGR from 2023 to 2027, the construction sector is driven by the government&rsquo s continued focus on infrastructure development and the private sector&rsquo s growing demand for commercial and industrial spaces. In fact, the industry has demonstrated a 4.3% year-on-year growth in Q2 2024, supported primarily by public sector output.
As previously mentioned, this positive industry outlook offers a fertile ground for established companies like Soilbuild Construction to thrive. Soilbuild&rsquo s A1 classification under the Building and Construction Authority (BCA) allows it to tender for projects of unlimited contract value, positioning it as a key player in public infrastructure and large-scale private developments.
In fact, Soilbuild Construction&rsquo s future growth is well supported by a robust order book that reached approximately S$1.25 billion as of August 2024.
This includes the construction project at Tuas Port with a contract value of S$647.5 million, the largest contract secured by the Group in its history, representing Soilbuild Construction&rsquo s growing prominence in the public sector.
Moreover, Soilbuild Construction&rsquo s increased focus on sustainability also aligns well with broader industry trends, as the demand for green buildings and energy-efficient solutions continues to rise.
The group&rsquo s involvement in projects like DB Schenker&rsquo s sustainable logistics facility reflects its commitment to environmental stewardship, a critical factor in winning future contracts as Singapore pushes toward a greener future.
Experienced Leadership: The Engine Behind Success
One of the driving forces behind Soilbuild Construction&rsquo s turnaround is its experienced leadership team.
Executive Chairman Mr. Lim Chap Huat and CEO Mr. Lim Han Ren own a controlling 78.8% and 5.6% stakes, pointing to the fact that they are sticking in the company for the long haul. Under their leadership, Soilbuild Construction has strengthened its order book, enhanced project execution, and maintained a disciplined approach to cost management.
CEO Mr. Lim Han Ren expressed confidence in the company&rsquo s future and said (summarized) in its press release for 1HFY2024 :
&ldquo Our strong set of results reflects our team&rsquo s continual focus on operational execution and project delivery, and once again highlight that we are executing on our imperative to drive growth and profitability.
We made significant progress in strengthening our order book and with approximately S$1.18 billion of pipeline projects, it will improve revenue visibility and we aim to continue to drive efficiencies through our operating model and improve margins.
Building on this positive momentum, we will continue to focus on improving the quality of our growth with long-term commitments and larger-scale projects.&rdquo
On dividends, the Group seemed inclined to reward shareholders with dividends as well. With a turnaround for its FY2023 results, the Group announced a final dividend of 0.1 cents per share. And with improved financials for 1HFY2024, the Group has declared an interim dividend of 0.1 cents per share for 1HFY2024.
Conclusion: A Solid Investment in the Future
Soilbuild Construction&rsquo s turnaround journey is a testament to the company&rsquo s resilience, strategic leadership, and strong operational capabilities.
With that in mind, Soilbuild Construction presents a compelling case for delivering long-term value, underpinned by its diversified service offerings, robust financial health, dividend payout and commitment as a sustainable builder.
As Singapore&rsquo s construction sector continues its resilient and stable growth, Soilbuild Construction potentially offers shareholders not only attractive returns but also a stake in the future of Singapore&rsquo s infrastructure landscape.
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Jajabing
Veteran |
18-Sep-2024 10:48
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Today T+3 T+4 for last week surge, can try queue 83 84 for fun. Should have bargain later in , if Heng can get 82 | ||||
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huattuatua
Elite |
16-Sep-2024 17:11
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bbs push abv the 60sma line, which is a good sign nonetheless we r still subjecting to the whimps and fancies of the bbs,
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piscesmonkey
Supreme |
16-Sep-2024 17:09
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Close at 87 which is good. Hopefully tmr push up 😁
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