: Value Investing Forum - Singapore, Hong Kong, U.S.

Full Version: Ryobi Kiso Holdings
You're currently viewing a stripped down version of our content. View the full version with proper formatting.
I thought the just released FY11 (ended 30Jun11) full-year results makes interesting reading....$file/RKH-FY2011ResultsAnnouncement240811.pdf?openelement [Results announcement]$file/RKH-FY2011ResultsAnnouncement240811.pdf?openelement [Press release]

It is quite scary to see how fast profits in the local ground engineering industry and among the players get bashed after the 2 IRs!
seems quite risky to be in local ground industry.
The construction sector is indeed very cyclical and the boom and busts can be pretty severe for all companies within the industry.

I learnt this the hard way while I was vested in Tat Hong for 2 years. The high capex and intense competition + fragmented nature of the industry meant that no one player had any competitive moat to speak of. Therefore, even when you claim you are the XX largest in the world, it may not stand you in good enough stead as customers can simply buy and utilize their own heavy machinery/cranes or rent from a cheaper source.

With FDI poised to be reduced due to problems stemming from USA and Europe, our construction industry may see a further contraction. Companies such as Ryobi, Tiong Woon and Tat Hong may take a while before they see more light at the end of the tunnel.

My 2-cents.

(Not Vested)
Ryobi-Kiso under Interim Judicial Management:

The shares are suspended.

I note that Tritech, while still listed, are languishing at $0.029, and sellers only at this price. That is not much more than 10% of what they were going for 5 years ago.

I feel sad about this, as I have done work for both companies in the past and the people I dealt with were enthusiastic and technically capable. Trouble is that much specialist ground engineering work is done as sub-contractors, and my personal experience is that for subcontractors in Singapore it can take a long time to get paid, if you get paid at all.
THE construction sector in Singapore saw worsening debt payment behaviour as less debt was paid on time while delinquent debt almost doubled in the fourth quarter of 2018.