Tuesday, November 26, 2013

Tiong Woon : Earnings growth on track with possible one-time gain in 2Q14 (UOBKH)

Tiong Woon Corporation
Share Price S$0.350
Earnings growth on track with possible one-time gain in 2Q14.

• TWC reported an 11% yoy increase in net profit to S$4.6m in 1Q14, driven by a rise in revenues and margins from the Heavy Lift and Haulage and Trading segments. Total revenue rose 3% yoy to S$44.6m and gross profit jumped 30% to S$14.8m with gross profit margin improving to 33% from 26% in 1Q13. The Heavy Lift and Haulage segment recorded a 6% yoy increase in revenue to S$36.3m and contributed 81% of the Group’s revenue.


• According to management, the company should see a slight improvement in utilisation rate after deploying two heavy tonnage cranes into Russia. On top of this, TWC will also be actively seeking oil and gas, petrochemical, power and construction projects in Myanmar, Vietnam and India.

• To reduce operating costs, TWC is currently evaluating the tenders for the re-development of the new office and warehouse space at 15 Pandan Cresent. This property will add 1ha of parking space on the rooftop as well as a 500-bedded workers’ dormitory. The company expects to lower their total manpower costs and there is also a possibility of renting out half of their dorms.

• TWC has sold its loss-making subsidiary Tiong Woon Oil & Gas Services Pte Ltd for a sum of S$18.0m. The subsidiary is in the business of marine fabrication and engineering works for oil and gas projects but has faced several challenges in getting new contracts due to a lack of track record. With the disposal, the company is likely to record a gain on disposal of approximately S$2.7m in the next quarter.

• We re-iterate that Tiong Woon is not a pure crane rental operator. Tiong Woon differentiates itself from other crane operators by providing a comprehensive project management service apart from bare crane rental. These service project contracts are longer term in nature (rates are locked in) and therefore, earnings are theoretically less volatile in nature.

Valuation
• Tiong Woon (TWC) is trading at a 33% discount to its book value of 52.2 S cents with a dividend yield of 1.1%. As at 30 Sep 13, Tiong Woon had a fleet of 431 cranes in lifting assets, 262 vehicles and equipment in haulage assets and 17 tugs and barges in marine assets.



Source/Extract/Excerpts/来源/转贴/摘录: UOBKH-Research,
Publish date: 22/11/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock