First, we increase our FY26 target price-to-earnings (P/E) multiple for the Geospatial division from 8x previously to 10x. This is in line with the multiple that we applied when we first initiated coverage on the company in Sep 2023, and reflects the division’s status as a crown jewel in Boustead’s portfolio as well as exposure to secular growth trends.
While we keep our forecasts intact, we relook key assumptions underlying our sum-of-the-parts (SOTP) valuation and make some adjustments.
Adjustment to valuation assumptions.
First, we increase our FY26 target price-to-earnings (P/E) multiple for the Geospatial division from 8x previously to 10x. This is in line with the multiple that we applied when we first initiated coverage on the company in Sep 2023, and reflects the division’s status as a crown jewel in Boustead’s portfolio as well as exposure to secular growth trends.
Second, we halve the discount to net asset value (NAV) on Boustead’s Real Estate division from 50% to 25%. We think this is justifiable given the company’s recent moves to unlock value for shareholders – namely,
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Above is an excerpt from a report by OCBC Investment Research. Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.
