Tiong Woon

[ishak]

Bintan yard, the next growth driver
BUY Maintain
Target: S$0.56
10 Sep 2008

Recap – record earnings for FY08. Turnover was S$157.8m, up 58% YoY, on the back of an increase in revenue from its Heavy Lift and Haulage and Fabrication & Engineering segments. In line with the record turnover achieved, PATMI was up 24% YoY, reaching S$28.0m from S$22.5m previously. Gross profit margin, on the other hand, dipped slightly from 39.8% a year ago to 35.4%, due to the lower margins of its Fabrication & Engineering segment. EPS increased from 6.67 S¢ to 8.28 S¢.

Focus on Bintan fabrication yard. For its next growth driver, TWC would be focusing on providing ship repair services for tug boats and barges at their yard. The 64 ha fabrication yard has a wharf of 372m and a natural water depth of 12m. This enables it to accommodate vessels up to 120,000 DWT. Management’s decision to take on more ship repair jobs versus ship building contracts is due to the relatively higher margins, quicker turnaround time as well as lower working capital required. Each ship repair assignment for tugboats and barges has an average duration of approximately one month.

Constructing a new slipway to optimize efficiency. TWC plans to construct another slipway, costing S$0.6m in the yard for ship repair. This additional slipway would facilitate TWC to maximise the inland area for repair works and enhance operational efficiency by reducing congestion and improving the speed of vessels moving in and out of the yard. Traditionally, companies would repair the vessels on the slipway and hence only one repair job can be carried out per slipway, at any point in time. By building another slipway, TWC can utilise their multi-axle transporters to move the vessels further inland for repair works from one slipway and to transport the vessel out from the other slipway when repairs are completed.

Gearing expected to reduce post vessel delivery. The S$64.8m pipe lay barge (PLB) contract awarded in Sept 07 was about 40% completed as at end Jun 08. There was some delay by Norce Offshore Pte Ltd, which falls under permissible delays in the terms of the contract. As such, TWC is not liable for the postponement of vessel delivery date. After the PLB is delivered in Mar 09, we expect TWC’s gross gearing to ease off from its current 90% in FY08 to approximately 66% in FY09, as borrowings had increased due to the PLB contract.

With approximately 1300 workers stationed at the yard and TWC’s aggressive marketing, management is confident of their ability to grow the yard’s operations to the next level.

Maintain BUY, fair value of S$0.56. We remain positive on TWC’s prospects from their exposure to the still buoyant oil and gas and petrochemical sectors as well as their niche position as one of the few specialised contractors that support these industries. With TWC trading below its book value of S$0.39, we maintain our buy rating and fair value of S$0.56, based on industry average of 6x prospective P/E.

[winston]

Tiong Woon Q1 net profit up 240%
By KALPANA RASHIWALA

Tiong Woon Corporation Holding has posted a 240 per cent jump in net earnings for Q1 ended Sept 30, 2008 to S$11 million.

Turnover rose 54 per cent to S$45.44 million. Profit before tax from heavy lift and haulage jumped 80 per cent to $12.4 million and pbt from marine transportation rose 149 per cent to S$2.5 million.

Loss before tax for fabrication and engineering fell to S$1.4 million in Q1 2009 from a S$3.3 million loss in the same period last year.

Source: Business Times Singapore

[winston]

Singapore Hot Stocks-Crane firm Tiong Woon gains on results

SINGAPORE, Nov 13 (Reuters) - Shares of crane company Tiong Woon bucked a weaker Singapore market to gain as much as 4.9 percent on Thursday, after it announced a 240 percent increase in its first quarter net profit on Wednesday.

A Singapore dealer said Tiong Woon, which is an oil and gas services firm that specialises in heavy lifting, was also supported by results for Singapore crane firm Tat Hong , which saw a slight rise in quarterly profit this week despite worries about a downturn hitting the construction industry.

"Tat Hong and Tiong Woon are specialised contractors who will perform better in an economic downturn, as others will not be able to do what they are doing," said the Singapore dealer.

By 0408 GMT, shares in Tiong Woon were up 4.88 percent to S$0.215 while Tat Hong was up 1.7 percent at S$0.595.

Source: Reuters

[millionairemind]

February 11, 2009, 5.39 pm (Singapore time)

Tiong Woon's H109 net profit up 119%

By ANGELA TAN

Tiong Woon Corporation Holding Ltd on Wednesday reported net profit for the six months to end December 31, 2008 rose 119 per cent from a year ago to S$23.07 million.

Turnover for its fiscal first half rose 45 per cent to S$95.51 million.

The increase in the turnover was mainly attributed to the increase in revenue from its Heavy Lift and Haulage segment, Fabrication & Engineering segment and Trading segment.

The group remains cautiously optimistic on the outlook of Oil & Gas and Petrochemical sectors in the near term in Singapore and in the identified key markets such as People's Republic of China, Thailand, Indonesia, Vietnam, Brunei, India and the Middle East countries.

However, in the longer term, conditions could become challenging in the light of the slowdown in the global economy, it said.

Source: Business Times Singapore

[Aspellian]

Qns:
- profit growth sustainable?
- interest high esp with Tat Hong in limelight (PE investing 10% stake)
- price/volume action very strong.

Tiong Woon posts record net profit of $42m and revenue of $202m for FY09

Mainboard-listed heavy lift equipment specialist Tiong Woon Corporation Holding today announced a record net profit after tax and minority interest of $42.3 million for the full year ended 30 June 2009, an increase of 51% over the $28 million it generated in the same period last year.

To reward its shareholders, Tiong Woon’s board of directors has recommended a final one-tier dividend of 0.4 cents per ordinary share, representing a dividend payout ratio of about 3.2%, to be paid in November 2009.

The group also turned in its highest ever turnover of $202.3 million, up 28% from $157.8 million the previous year, mostly due to higher contributions from its Heavy Lift and Haulage and Fabrication and Engineering segments.

Earnings per share was 12.54 cents compared to 8.28 cents.
Current Price is 70 cents - PE of only 5.6!!

The group says its financial position remained sturdy with a market capitalisation of $232.9 million backed by total assets of $371.9 million and net tangible assets of $177.7 million.

Overall, the group’s key business segments performed well. The Heavy Lift and Haulage business contributed the lion’s share of $130.6 million to total turnover.

This works out to an increase of 32% over the previous year and was due mostly to the increase in integrated projects undertaken by the group in the Asia Pacific region.

The group’s Fabrication and Engineering segment added $47 million to total turnover, a jump of 78% compared to FY2008, due mainly to a higher percentage of revenue recognition from its maiden derrick pipe-lay barge project.

In view of the global economic downturn and to maximise investment in its 64-hectare Bintan Fabrication Yard in Indonesia, Tiong Woon says it will continue to provide ship repair services due to their shorter duration, lower working capital outlay requirement and better profit margins.

The Bintan Fabrication Yard was acquired in November 2006 to shore up its fleet of heavy lift equipment, tugs and barges. The $64.8 million maiden shipbuilding contract to build a 146.3-metre derrick pipe lay barge with a gross tonnage of about 25,100 tonnes was signed with Norce Offshore in September 2007. The barge was 86% completed as at 30 June 2009 and is scheduled for launch next month.

[Aspellian]

Hi Music Whiz,

did you analyse Tiong Woon too before you buy Tat Hong?
i am trying to find out what Tiong Woon has done that is special (other than Spore local concentrated) which results in TW earning more profits than THong.

[Aspellian]

Published August 31, 2009

Tiong Woon well-positioned for upsurge
By VEN SREENIVASAN

AFTER being down in the dumps for the better part of a year, sentiment has improved both in the financial and the asset and commodity markets.

New heights: Tiong Woon's heavy lift equipment gives it a full suite of capabilities to meet the strong pickup in demand for its services from the offshore oil & gas industry. Activity in the construction, offshore oil & gas and infrastructure sectors has picked up steadily over the past few months, while the property market seems to have taken off at a scorching pace.

One company which appears nicely positioned to capitalise on these uptrends is mainboard-listed Tiong Woon Corporation. Tiong Woon's fourth quarter results, announced last week, provide a glimpse of its prospects for the year ahead.

The heavy lift & haulage specialist which provides critical logistics services support for the oil & gas sector, lifted its fourth quarter earnings by a whopping 71 per cent to $12.2 million, beating all analysts' forecasts.

This raised its full year net profit by a huge 51 per to $42.3 million, from $28 million a year earlier. Revenue rose 28 per cent to $202.3 million, up from $157.8 million in FY08. The profit would have been higher if the company had not written down some $6.2 million in financing costs for a $65 million ongoing pipe-laying barge building contract from Norwegian charterer, NorCe.

Tiong Woon may not be as familiar a name as Rotary Engineering or Tat Hong Holdings. But it is entering a growth cycle which the former is also enjoying at the moment, and which the latter rode during the 2005-2007 construction boom.

The company is already one of the most established heavy lift and haulage operators in the region, with key capabilities to take on critical turnkey projects for international builders and contractors, especially in the oil & gas, power and petrochemicals space.

It also operates a 64-ha marine fabrication yard in Bintan with capabilities to build and repair offshore operations vessels and barges, a business segment which is showing signs of good recovery.

But the company's overwhelming strength is its heavy lift and haulage arm, which accounted for $52.2 million in pre-tax earnings and $130.6 million in topline revenue. Its 321 heavy lift and other land-based and marine equipment gives it a full suite of capabilities to meet the strong pickup in demand for its services from the offshore oil & gas industry as the price of oil climbs steadily past the key US$70 per barrel level.

Demand for its heavy haulage cranes has grown sharply over the past eight months, not only pushing up rental rates and margins (its margins for heavy lift rose from 38 per cent to 41 per cent during Q4 2009), but also prompting the company to start boosting its fleet size.

Tiong Woon is already a key sub-contractor to companies like Rotary Engineering and Hiap Seng, which have recently been seeing huge inflows of new contracts, not just from Singapore and Jurong Island, but also Malaysia, Indonesia, Thailand and as far off as Saudi Arabia. There is now widespread expectation that the company could soon announce major contracts with oil majors themselves, both here in Singapore and around the region.

Meanwhile, at its Bintan yard, Tiong Woon is refocussing on the higher margin and quicker turnaround ship-repair jobs. Once the NorCe vessel is delivered shortly, its current slipway will be freed up to take in waiting customers. Plans are also underway to build another slipway at some $600,000, which will significantly increase its ship-repair capacity and turnaround to meeting rising demand from the offshore oil & gas industry.

With almost $17 million of cash, the company has the financial muscle to scale up to meet the growing demand for its services. But analysts expect this cache to rise to $45 million by June 2010, with free cashflow rising to almost $110 million.

The ongoing recovery in the energy and commodity sectors will benefit some companies more than others. Based on the growing demand for its services and its strength in operating numbers, Tiong Woon clearly appears to be sitting pretty in the former category.

<not vested>

Source: Business Times Singapore

[Aspellian]

No wonder the price keeps on going up... <not vested>

Mainboard-listed Tiong Woon Corporation Holding says wholly-owned subsidiary Tiong Woon Oil & Gas Services has completed the construction of parts of a 146.3-metre derrick pipelay barge for the owner and operator, NorCE Offshore Pte Ltd at its fabrication yard in Bintan, Indonesia.

The vessel, weighing 16,500 tonnes, was successfully launched today.

The $64.8 million maiden contract was signed with NorCE in August 2007. Under the contract, Tiong Woon was primarily responsible for building the hull and major sections of the vessel as well as installing the owner’s equipment.

The vessel has a gross tonnage of approximately 25,100 tonnes when completed and is built to the highest engineering standards to comply with ABS classification rules and stringent international quality and HSE standards, says Tiong Woon. It is equipped with 7,025 KW generators, an 1,100-tonne marine crane, mooring system and pipelay equipment capable of operating in water depth up to a maximum of 200 meters and handling pipes of up to a maximum of 48 inches in diameter.

Tiong Woon is an integrated services provider for the Oil & Gas and Petrochemicals industries and specialises in heavy lift and installation of process equipments.

Tiong Woon’s Bintan Fabrication Yard was acquired in November 2006 to shore up its current fleet of heavy lift equipment, tugs and barges, and eventually, to grow a new income stream from fabrication and engineering projects. The yard can be used for the fabrication of platforms for oil rigs, jackets and modules as well as for building of vessels and barges. It has a 372m-long wharf with a natural water depth of 12 metres that can accommodate vessels of up to 120,000 tonnes. The derrick pipelay barge is the third vessel that the yard has built to date.

To make the most of its investment in the yard, Tiong Woon says it will continue to focus on providing ship repair services as these projects are shorter in duration, require lower working capital outlay and have better profit margins.
<TOL: prob couldnt get any more contracts?>

In 2009, the group registered net profit after tax and minority interest of $42.3 million for the full year ended 30 June 2009 on revenue of $202.3 million, mostly due to higher contributions from its Heavy Lift and Haulage and Fabrication and Engineering segments. The Fabrication and Engineering segment added $47 million to total turnover, a jump of 78% over FY2008, due mainly to a higher percentage of revenue recognition from this derrick pipe-lay barge project.

Source: The Edge

[kennynah]

family run business.... period....

[Musicwhiz]

family run business.... period....

Actually, so it Tat Hong.