Tiong Woon

[winston]

Not vested. Prospects are supposedly good so they need the cash to expand, right ?

From Kim Eng:-
Tiong Woon in $28.2m fund-raising exercise

FACED with strong project inflows and crane shortage, listed petrochemical sector
haulage and heavy lift specialist Tiong Woon Corp yesterday announced a $28.2
million cash-raising exercise via a placement of 34 million new shares at 83 cents
apiece.

The issue price represents a 5.1 per cent discount to the stock's pre-suspension
traded price of 87.5 cents.

(Sources: Company, SGX, Business Times, Dow Jones)

[winston]

Not vested. From CIMB:-

Tiong Woon Corporation (S$0.64) - Gloomy start to 2010

Downgraded to Neutral from Outperform; target price reduced to S$0.73. We downgrade TWC from Outperform to Neutral after cutting our core EPS estimates for FY10-12 by 27%-30%. The company struggles with the lack of ship building contracts while its crane utilisation rate remains weak.

Growth in the Singapore construction sector has started to decelerate, while the lack of sizeable projects in the Singapore oil and gas sector has resulted in a dip in crane utilisation rates across the industry.

The Group's revenue and core net profit for FY10 are expected to decline from FY09' record level as a result of the waning crane demand and as its fabrication and engineering division struggle with the lack of ship building orders.

Our target price has been reduced from S$1.06 (8.0x P/E) to S$0.73, now based on 7.2x CY11 P/E. We expect weak 2QFY10 results to be the key de-rating catalyst for
this stock.

[Aspellian]

Not vested. From CIMB:-

Tiong Woon Corporation (S$0.64) - Gloomy start to 2010

Downgraded to Neutral from Outperform; target price reduced to S$0.73. We downgrade TWC from Outperform to Neutral after cutting our core EPS estimates for FY10-12 by 27%-30%. The company struggles with the lack of ship building contracts while its crane utilisation rate remains weak.

Growth in the Singapore construction sector has started to decelerate, while the lack of sizeable projects in the Singapore oil and gas sector has resulted in a dip in crane utilisation rates across the industry.

The Group's revenue and core net profit for FY10 are expected to decline from FY09' record level as a result of the waning crane demand and as its fabrication and engineering division struggle with the lack of ship building orders.

Our target price has been reduced from S$1.06 (8.0x P/E) to S$0.73, now based on 7.2x CY11 P/E. We expect weak 2QFY10 results to be the key de-rating catalyst for
this stock.

is this the start of the many downgradings across industries?
- lack of sizeable oil and gas contracts
- lack of ship-building orders (its evident that there's over capacity of ships out there)
- construction sectors slowling down (after Marina and Genting completed, what next for the construction companies????)

[Musicwhiz]

The downgrades/upgrades are to encourage people to trade, rather than invest.

Just my views.

[Aspellian]

The downgrades/upgrades are to encourage people to trade, rather than invest.

Just my views.

interesting view - so the upgrades and downgrades are more to churn transactions for brokerage fees. you can be right.

[Musicwhiz]

Yes, I personally think so. JUst slap a "7.2x PER" to justify "selling", then to encourage "buying" just use say 10x PER. Brokerages can tweak this elusive number called PER based on their whims and fancies.

[winston]

Dont know. The most important thing is what others would be doing on any upgrades or downgrades.

I dont want to be around when they are selling. I would rather pay 1% round trip than to lose 15% to 20% if I'm vested

[kennynah]

Yes, I personally think so. JUst slap a "7.2x PER" to justify "selling", then to encourage "buying" just use say 10x PER. Brokerages can tweak this elusive number called PER based on their whims and fancies.

so complex.....i tell you bro...even when i know you lao jiao.... "family run" business... dont touch...

[winston]

Dear All,

I have split out the various discussions on "family run" business and created a new thread titled "Family Run Business", located in the "Other Investment Instruments & Ideas" section.

Take care,
Winston

[winston]

Not vested.

RESEARCH ALERT-DMG lowers Tiong Woon's target price

SINGAPORE, Feb 11 (Reuters) - Following is a list of stock price target changes and rating changes.

COMPANY RIC BROKER RATING (PVS) TARGET PRICE (PVS) TIONG WOON TION.SI DMG BUY (BUY) S$0.72 (S$0.89)

BROKER STATEMENT: We have raised our financial year 2011 earnings forecasts, on the back of an expected pick-up from its Heavy Lift and Haulage (HLH) segment as the economy improves. Outlook remains positive as we still see a stable flow of projects in the oil and gas arena and the Indian market could potentially be an additional kicker.

However, with the drag from TWC's exposure to the construction sector, around 30 percent of revenue, and the weakened investors' sentiment recently, we have revised our fair value down to S$0.72, from S$0.89 previously, based on industry average of 6.5 times of financial year 2010 price to earnings ratio. Maintain BUY.

Source: Reuters