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Tiong Woon Last:0.58 -

Tiong Woon

Earnings growth on track with possible one-time gain in 2Q14.

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.

Investment highlights

? 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.

Price Chart

Source: Bloomberg

Thank you Mr everything also know

I think not too far already

May all you dreams come true!... Huat arh....

WanSiTong ( Date: 07-Nov-2013 17:50) Posted:

Everyone must have a dream........

shareluck ( Date: 07-Nov-2013 17:32) Posted:

35...40.....45.....50......52.........

Everyone must have a dream........

shareluck ( Date: 07-Nov-2013 17:32) Posted:

35...40.....45.....50......52.........

huat ah

Tiong Woon?s net profit rose 11% to S$4.6m on

turnover of S$44.6m for

first quarter ended 30 September 2013

NAV : 52.16c

Sorry PAT for TW should read 19.3m instead of 16.3m

	Tat Hong	Tiong woon
	1Q ended 30.6.13	Full yr ended 30.6.13

Profit & Loss	($' M)	($' M)
Revenue	175x4=700	200
Profit after Tax	9.2x4=36.8	19.3	*After the sale of the loss making yard, this year (ending June14) will benefit
depreciation	21.5x4=86	27	from the absence of close to $3mln in operating losses attributed to the yard.


EPS (cents)	1.28x4=5.12	4.23+0.65=4.88	* Adjusted for 3m increase in profit due to the sales of yard

NTA (cents)	98	51.22


Balance sheet items	($' M)	($' M)

Properties, plant & Equipments	912.8	307.3
Inventory	182.7	4.7
Trade & receivables	241.4	68.8
Cash & Bank	58.1	26.2
TOTAL ASSETS	1521.9	426.5

Financial Liabilities	500.4	102.3
TOTAL Liabilities	793.9	185.9


Cash Flow Statement	($' M)	($' M)

Purchase of Plant & equipments	38.5x4=154	14
Repayment of borrowing	34x4=136	23.5
Financial lease	25x4= 100	15.5
Interest paid	4.8x4=19.2	2.7

Besides EPS and NTA, Tiong woon 's cash flow & financial position are much better than Tat Hong as shown below.

TW's Capital expenditures and financial liabilities are also much lower .

Closing price today for TW is 34.5c as compared to 93c for TH.

Tat Hong

Tiong woon

1Q ended 30.6.13

Full yr ended 30.6.13

Profit & Loss

($' M)

Revenue

175x4=700

200

Profit after Tax

9.2x4=36.8

16.3

*After the sale of the loss making yard, this year (ending June14) will benefit

from the absence of close to $3mln in operating losses attributed to the yard.

depreciation

21.5x4=86

27

EPS (cents)

1.28x4=5.12

4.23+0.65=4.88

* Adjusted for 3m increase in profit due to the sales of yard

NTA (cents)

98

51.22

Balance sheet items

($' M)

Properties, plant & Equipments

912.8

307.3

Inventory

182.7

4.7

Trade & receivables

241.4

68.8

Cash & Bank

58.1

26.2

TOTAL ASSETS

1521.9

426.5

Financial Liabilities

500.4

102.3

TOTAL Liabilities

793.9

185.9

Cash Flow Statement

($' M)

Purchase of Plant & equipments

38.5x4=154

14

Repayment of borrowing

34x4=136

23.5

Financial lease

25x4= 100

15.5

Interest paid

4.8x4=19.2

2.7

StewardLittle ( Date: 17-Oct-2013 19:45) Posted:

Tiong Woon constantly requires capital expenditures which their operating cash flow cannot support. Just look at Tat Hong and compare.

is surely a ang pao stock at this price

huat ah!

Good Buy? This stock likely to move at least 20%-30% by next chn new year? Dividend is pathetic but hopefully prospects is good. vested...

shareluck ( Date: 13-Oct-2013 15:18) Posted:

maintain B UY

WanSiTong ( Date: 09-Oct-2013 20:37) Posted:

Tiong Woon Corp - completed the sale of their loss making shipyard in Bintan yesterday

■ Tiong Woon Corp (TWC) has finally completed the sale of their loss making shipyard in Bintan yesterday.

■ This is a very positive development as the shipyard lost close to $3mln last year and was sold for $18mln, reaping them a one-time gain of $2.7mln.

■ TWC?s cash holdings will be increased by 75% from $24mln to $42mln.

■ Net gearing will improve from 33% to a healthy 25%.

■ This will come in handy to fund the company?s expansion plans as management seeks to expand into the Iskandar region to capitalize on the region?s expected construction boom over the next few years.

■ As well, management is contemplating expanding their Singapore facilities as their current operating space is getting tight based on their current runrate and orders.

■ This is because a key customer of TWC, Rotary Engineering has secured a record order book of just over $1bln, which is expected to be delivered over the next 2 years.

■ Other oil related customers such as Total, Sinopec and Shell are also expanding aggressively in Tuas (Singapore Lube Park).

■ After the sale of the loss making yard, this year (ending June?14) will benefit from the absence of close to $3mln in operating losses attributed to the yard.

■ This will see TWC easily achieving our 25% net profit growth projection for full year ending June?14 of $22.5mln, translating to a forward PE of 7x.

■ This is undemanding relative to its growth prospects of 25% as well as peers such as Tat Hong?s 10x and Hiap Tong?s 9x. ■ TWC?s NTA of 52 cents means its price to book is only 0.65x and we note that its assets have not been re-valued and are kept at historical cost.

■ If TWC can trade up to its peer group average PE of 9.5x, there is potentially an upside of 36% to 46 cents, which would still put it at a discount to its NTA of 52 cents.

■ We maintain BUY. (Read Report)

FURTHER ANNOUNCEMENT ON THE PROPOSED DISPOSAL OF 100% INTEREST IN A WHOLLY-OWNED SUBSIDIARY

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_BF101020BA3F4FC448257B810041C707/$file/TWCH_SPA_5June2013.pdf?openelement