TIONG WOON CORP HOLDING LTD
BQM.SI
Tiong Woon Corporation Holdings Ltd - 18th Largest Crane-owning Company Worldwide
- Listed in 1999, Tiong Woon Corporation Holdings is a leading one-stop integrated heavy lift specialist and service provider.
- Ranked as the 18th largest crane-owning company globally by industry body, International Cranes and Specialized Transport in its IC50 2017 survey.
- The company returned to the black at net profit level in 2Q18.
- Now trades at a historical FY17 P/BV of 0.30x.
Proven track record of more than 35 years
- Listed in 1999, Tiong Woon is a leading one-stop integrated heavy lift specialist and service provider, supporting mainly the oil and gas, petrochemical, infrastructure and construction sectors.
- The group manages turnkey projects for engineering, procurement and construction contractors and project owners, from planning and design of heavy lifting and haulage requirements to the execution stage, in which heavy equipment is transported, lifted and installed at customers’ facilities.
Ranked as the 18th largest crane-owning company worldwide
- Headquartered in Singapore, Tiong Woon has a presence in ASEAN, China, Sri Lanka, India and Saudi Arabia. It was ranked as the 18th largest crane-owning company worldwide by International Cranes and Specialized Transport in its IC50 2017 survey.
- Tiong Woon has been appointed as the sole distributor of IHI crawler cranes in ASEAN (except Indonesia), authorised dealer of all XCMG products in Southeast Asia and exclusive distributor for Zoomlion tower cranes in Singapore.
Back in the black in 2Q18
- Tiong Woon returned to the black at net profit level in 2Q18 after three consecutive quarters of losses.
- In 2Q18, revenue fell 10% y-o-y due to weakness across all business segments. It registered gross margin of 27.9% in 2Q18 (2Q17: 28.1%). Finance costs were reduced by 24% y-o-y.
- As at end Dec-2017, net gearing was 0.44x. Bank borrowings fell to S$117.9m at end-Dec 2017 from S$125.2m at end Jun-2017.
Outlook
- Management guided that the operating environment continues to be challenging and competitive amid demand slowdown in the key markets it operates in.
- On a positive note, management expects the ongoing public-sector infrastructure development in Singapore to lead to more business opportunities. Tiong Woon plans to continue effectively managing operating costs, explore strategic collaborations and targeting complex and high value projects to expand its business.
Historical valuations
- Tiong Woon trades at a historical FY17 P/BV of 0.30x.
- As at end-Dec 2017, Tiong Woon’s book value per share was S$1.06. Property, plant and equipment as at end Dec 2017 (S$1.58 per share) accounted for 85.6% of its total assets.
William TNG CFA
CIMB Research
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http://research.itradecimb.com/
2018-03-08
CIMB Research
SGX Stock
Analyst Report
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* This Eyes On the Ground report represents a preliminary assessment of the subject company, and does not represent initiation into CIMB's coverage universe. It does not carry investment ratings and CIMB does not commit to regular updates on an ongoing basis.
