Since then, Boustead won a contract worth RM300 million to build a four-storey data centre and adjacent facilities. It also won a contract for an integrated pharmaceutical manufacturing and research and development (R&D) facility at Tuas.
Separately, Boustead is transferring its fund and property-management businesses to Unified Industrial to form a pan-Asian logistics real estate development, investment, and fund management platform, with Boustead holding a 24.1% stake.
"The transaction is expected to free up substantial capital that would otherwise be committed into funding future development projects in Singapore and Vietnam, which the company can potentially allocate towards higher-yielding opportunities," says Lim.
"At the same time, it will allow Boustead to diversify into Japan, China, and potentially other growth markets down the line," she adds.
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On a pro forma basis, if this deal had taken place on April 1 2023, Boustead's earnings per share in FY2024 would have been 25.4% higher at 16.8 Singapore cents.
"We continue to look favourably upon Boustead’s long-term growth profile as its businesses provide exposure to multiple secular trends," says Lim.
That said, she warns that broader macroeconomic growth concerns could weigh on investment sentiment.
She is leaving her forecasts unchanged for now ahead of Boustead's FY2025 earnings announcement, likely later this month.
