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Hard to find evaluation for Tiong Woon but Tat Hong evaluation will be good reference to the industry.
UOBKayhian on 22 Nov 2012
Valuation
· Tat Hong (TH) is trading at 10.7x FY13F PE based on Bloomberg’s consensus estimates with a dividend yield of 2.3%.
· Share price catalysts include an improvement in margins, utilisation rates and strong quarterly earnings for the next two years. With the new funding in place, TH should be looking to expand its fleet of mobile and tower cranes. The company placed out 70m shares at S$1.20/share in Sep 12.
Investment Highlights
· Recovery from slump. The group went through a rough patch in FY11 with earnings falling drastically as its Australian operations were hit by floods, keen competition had eroded margins and TH had to take a S$6.9m impairment provision for its investment in China. Net profit fell 33% yoy to S$26.0m from S$38.6m in FY11, a far cry from the record earnings of S$89.8m in FY08. However, net profit has resumed an uptrend with 1HFY13 net profit escalating more 87.9% yoy to S$38.4m.
· Construction boom provides earnings visibility. Heavy equipment owners like TH will benefit from the construction boom more than main contractors, according to several channel checks. As the government rolls out infrastructure projects such as Thomson Line MRT, North-South Expressway and HDB projects concurrently, it will inevitably squeeze limited resources and increase cost pressure. According to management, TH has cranes booked for the next 18 months, which is likely to increase utilisation rates and improve margins. Rental rates have also improved 15% from the trough in 2008.
· Increasing fleet size to cater for stronger demand. The company will be looking to expand its existing fleet by 40-50 cranes, with capex for the next financial year budgeted at S$70m-80m. We estimate TH can recover its investment in less than four years after incorporating depreciation, maintenance and other operating costs. Utilisation rates have improved from about 60% in 2008 to the maximum 75-80%.
1HFY13 Results
· Revenue grew 26% yoy to S$431.3m in 1HFY13, driven by stronger demand from all its business segments. Gross margin improved by 2.0ppt to 38.2% with gross profit jumping 33.1% yoy to S$164.8m, mainly attributable to higher rentals and utilisation rates from both the crawler/ mobile crane rental and tower crane rental divisions.
· However, operating costs rose 26.6% yoy to S$111.8m from higher administrative expenses, distribution costs and an unrealised net forex loss of S$8.5m. Net profit increased 87.9% yoy to S$38.4m from S$20.4m in 1HFY12
Sin Heng is gradually moving up bit by bit.
Tiong Woon will cheong soon. Strong buy for Tiong Woon with the price range of 26.5cents to 28.5cents.
Don't miss the boat.
Volume is low.
Don't miss the boat, just take some with current low price.
Tiong Woon FA analysis
1) NAV = 48.6cents which is much higher than 26.5cents today closing price
2) Last Q report profit of 4mil which is about Quarter PE of 7.5
3) Peer competitors in SG, Tat Hong (Singapore leader) is trading at 1.34 with NAV of 1.1 and Quarter PE of 10 and Sin Heng is trading at 0.20 with NAV of 0.20 and PE of 7.
4) Last quarter show that Tat Hong, Sin Heng and Tiong Woon revenue and profit margin are improved. This show that the heavy lift service profit margin are improved and 2013 will be their harvest year.
5) Tiong Woon is one of the company exposed in Myammar but doesn't join the Myammar play due to its poor perfomance in 2012.
6) Tat Hong is running ahead from 75 cents to 1.34dollars due to the industry operational environment is improved. Sin Heng and Tiong Woon will follow behind soon. But Top pick as Tiong Woon due to higher potential of share gain as per its current price, higher asset of facilities and etc.
7) Current project on hand are going to make Tiong Woon to be successful in 2013, Singapore Project like SembMar Mega Yard in Tuas and Hyflux desalination plant are belong to Tiong Woon. Tiong Woon also has project in Middle East, India, and South East Asia.
1) NAV = 48.6cents which is much higher than 26.5cents today closing price
2) Last Q report profit of 4mil which is about Quarter PE of 7.5
3) Peer competitors in SG, Tat Hong (Singapore leader) is trading at 1.34 with NAV of 1.1 and Quarter PE of 10 and Sin Heng is trading at 0.20 with NAV of 0.20 and PE of 7.
4) Last quarter show that Tat Hong, Sin Heng and Tiong Woon revenue and profit margin are improved. This show that the heavy lift service profit margin are improved and 2013 will be their harvest year.
5) Tiong Woon is one of the company exposed in Myammar but doesn't join the Myammar play due to its poor perfomance in 2012.
6) Tat Hong is running ahead from 75 cents to 1.34dollars due to the industry operational environment is improved. Sin Heng and Tiong Woon will follow behind soon. But Top pick as Tiong Woon due to higher potential of share gain as per its current price, higher asset of facilities and etc.
7) Current project on hand are going to make Tiong Woon to be successful in 2013, Singapore Project like SembMar Mega Yard in Tuas and Hyflux desalination plant are belong to Tiong Woon. Tiong Woon also has project in Middle East, India, and South East Asia.
khng2012 ( Date: 15-Nov-2012 17:16) Posted:
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If fiscal cliff is resolved on this friday, anybody expect 50% bounce up in 3 to 6 month.
You can consider Tiong Woon since its result turn better and current projects are moving to harvest period with slighly higher profit margin.
I am vested.
Result announce soon may be this week or next week. Profit guidance is not issued, any chance for this counter to rise as Tat Hong?
Hope the interest can last. Been holding it since April. Good luck. 
bishan22 ( Date: 13-Apr-2012 21:21) Posted:
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haha moving up fast and fierce on high volumn.
keep it up.
at last, moving up.
5 lots of Tiong Woon can only buy 1 lot of Tat Hong.
Quite a wide gap.
Singapore-headquartered Tiong Woon Corporation Holding (TWC) has posted a 41 percent increase in revenue from SGD106.9 (USD85.3) million to SGD151.2 (USD120.7) million for its 2011/12 financial year.
Despite the rise in turnover, the group registered a loss before tax of SGD3.9 (USD3.1) million.
Acting as an integrated services provider for the oil & gas and petrochemicals industries, TWC specialises in heavy lift projects and the installation of process equipment.
TWC Group chairman and managing director Ang Kah Hong, noted that revenues continued to grow. “There are business opportunities in the market and we are seeing good utilisation rates for our cranes.”
In the 2011/12 financial year, the Group’s Heavy Lift and Haulage segment saw revenue increased by 24 percent, due mainly to bigger integrated projects undertaken in the Asia Pacific region.
With the current uncertainty in the global economic and financial environment, the Group said it expects business conditions to remain difficult.
Tiong Woon Corporation Holding Ltd on Thursday swung to a loss of $4.85 million for the financial year ended June 30, 2012, from a profit of $951,000 a year earlier.
The group posted turnover of $151.21 million for the full year, up 41 per cent from $106.95 million a year ago, mainly due to higher revenue from the heavy lift and haulage, marine transportation and fabrication and engineering segments.
But higher expenses, currency exchange loss and impairment loss on trade receivables pulled the group into the red.
The integrated services specialist and provider of infrastructure businesses has maintained its 0.4 cent-per-share final dividend.
Well done!
Buy when profit guidance.
& sell when gd profit earning...
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Smart!
derekchong ( Date: 24-Aug-2012 14:16) Posted:
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thks. I will be collecting slowly as it go lower.
many infrastructure works going on, down
side not likely.
Not yet Sweet Heart...
BBs'll make Tiong Woon @ 0.180 in a few wks time.
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derekchong ( Date: 24-Aug-2012 11:01) Posted:
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Tiong Woon sinks into the red with $4.8m loss
but share price still stay steady.Good sign.
report loss this quarter
What happen to this counter? Not moving.
Tat Hong in the same business is moving
quite fast.
Myanmar fever