Tiong Woon

[winston]

From CIMB:-

Tiong Woon Corporation (S$0.66) - 3QFY08 results - Seasonally weak 3Q

Within expectations. 3Q08 net profit of S$5.2m (-21.8% yoy) was within consensus and our annualised forecasts. 9M08 net profit constitutes 65.7% and 67.3% of the respective full-year forecasts. 3Q08 revenue rose 49% yoy to S$42.1m, driven by the heavy haulage, fabrication and trading segments.

Maiden quarterly reporting. TWC’s 3Q is typically the year’s slowest quarter due to festivities. The company also experienced weakness in the marine transportation segment on lower utilisation, repairs and scheduled maintenance for its barges and
tugboats. There was also mobilisation of equipment. Fabrication & engineering lost S$0.6m in 3Q08 and S$3.3m in 9M08, mainly on start-up costs at its Bintan yard. Gross margins slipped to 35% from 38.9% in 9M07. Finance costs increased 129% to S$2.5m in 9M08 due to higher borrowings to fund the fabrication of its NorCE pipelay barge contract as well as the purchase of new cranes.

Positive outlook. Management maintains a positive outlook, anticipating robust demand for crane services; it expects all segments to post good revenue growth. In particular, TWC is moving into repair services, targeting offshore and marine equipment, given their better margins, sizeable contract values of US$30m-50m and faster turnaround. However, there are pressures from staff costs (mainly crane operators), interest costs as well as an industry shortage of operators. Meanwhile, management is watching its net gearing, which currently stands at 76.6%, and will be working to reduce this to 60% by
FY09.

Maintain Outperform; good proxy. We maintain our FY08 forecast but cut FY09-10 forecasts by 8-23% to reflect a more challenging environment with rising cost pressures, despite management’s optimism. However, we continue to view TWC as a good proxy for the robust construction and oil & gas sectors. Our target price dips to S$1.21 from S$1.45 following our earnings reductions, still based on 10x CY09 P/E, or a 30% discount to our target P/E for Tat Hong (in view of TWC’s smaller size).

[kazataza]

personally vested in this stock..for the past year, the low will be around 48cents (during Mar sell down) and the high will be around $1.20 (2007)....

currently stable at around 60 cents....personal observation is that someone is buying up the stocks whenever it's near 60 cents....

[winston]

From Kim Eng:-

Tiong Woon – 3Q08 Results (Rohan Suppiah, DID: 64321455)
Previous Day Closing price: $0.665
Recommendation: Buy (maintained)
Target price: S$1.23 (maintained)

Decent earnings

Tiong Woon announced a net profit of S$15.7m for the nine months to 3Q08, an increase of 18%. Turnover was up 49% to S$107.9m.

On a per quarter basis, earning came in at S$5.2m, which was slightly below expectations, and was a 18% decline from 3Q07. This was despite q/q turnover up by 49% to S$42.1m.

The variance came mainly from a one time boost in 3Q07 from an extraordinary gain.

Making hay while the sun shines

Tiong Woon says that it is on track for growth with numerous business opportunities presented in the domestic construction market as well as overseas business activities.

It continues to be very busy on Jurong Island and some of the projects on the mainland, while taking advantage of opportunities in the oil and gas sector, bothe in Singapore and overseas.

Maintain target of S$1.23

We are still maintaining our June FY08 forecast of S$24.8m/EPS 7.4cts per share versus consensus of 7.5cts.

Our forecast also includes the potential gain on the sale of older cranes - core EPS stands at 6.6cts per share.

A revaluation of Tiong Woon’s crane fleet to market value yields a RNAV of S$0.66 per share.

Our full target price of S$1.23 is based on a PEG of 0.4x. 3-year earnings CAGR stands at 28% p.a.

[kazataza]

Tiong Woon - YTD Results Up
(DMG - Buy $1.29) 12 May 08

Tiong Woon (TW) released their results last Friday, with 3Q’s net profit down 17% YoY to S$5.3m.
Turnover was up 49% to S$42m, mainly attributed to the increase in revenue from both TW’s
Heavy Lift and Haulage and its Fabrication and Engineering Segments. 3Q’s net profit was down
17% YoY to S$5.3m on the back of a 92% YoY reduction of other miscellaneous gains (net) and
an increase in other operating and financing expenses. Gross profit margin for 3Q08 was down
from 41.3% in 3Q07 to 31.4% with a 74% YoY spike in cost of sales. Looking at the 9 months for
2008, TW’s turnover was up 49% YoY at S$107.9m and net profit was up 18% YoY at S$16m.

Management remains optimistic on the outlook for its Oil and Gas and Petrochemical sectors both
locally and overseas. They would continue to pursue opportunities in Infrastructure, Power Plants,
Petrochemicals and Oil and Gas projects in key markets such as China, Thailand, Malaysia,
Indonesia, Vietnam and the Middle East countries.

At the closing price of S$0.655, our FY07 and FY08 estimated PER is 9.8x and 9.5x respectively.
We have a BUY recommendation with a price target of S$1.29 for this counter, which is currently
under review.

[winston]

Not vested. From CIMB:-

Tiong Woon (Outperform, S$0.575, target S$1.21).

Management maintains a positive outlook, anticipating robust demand for crane services. It expects all segments to post good revenue growth. In particular, TWC is moving into repair services, targeting offshore and marine equipment, given their better margins, sizeable contract
values of US$30m-50m and faster turnaround.

However, there are pressures from staff costs (mainly crane operators), interest costs as well as an industry shortage of operators. Nevertheless, we continue to view TWC a good proxy for the robust construction and oil & gas sectors.

Our unchanged target price of S$1.21 is based on 10x CY09 P/E, in line with targets for industry peers.

[Rontan]

CIMB issue a target price of $1.21 in June, but the price is now at $0.35

Anyway, the just announce their FY result. Posted record net profit of $28m on all-time-high revenue of S$158m. Anyone still holding on to this stock?

Not vested.

[winston]

Not vested.

-- Tiong Woon - Tiong Woon reported a 24 percent jump in net profit to nearly S$28 million for the year ended June.

Its turnover was S$157.8 million, up 58 percent.

It said the higher turnover was due to increased sales from its heavy lift and haulage and its new fabrication and engineering segment, Singapore's Business Times reported on Wednesday.

[helios]

*volume is like gunpowder.




- Weekly chart reviewed on 26-Aug'08.

[kazataza]

i'm still holding on to this one....

[ishak]

35.5 cents | Buy

CIMB keeps its rating for the haulage and marine transportation firm but slashes the price target to 58 cents from $1.21. The brokerage has cut its FY2009-2010 forecasts for Tiong Woon by 17 to 22 percent to reflect a more challenging environment. CIMB adds that with weak investor sentiment hitting small cap stocks, it has also reduced its 2009 price/earnings valuation to six times from 10 times previously.