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

Hiap Tong is the leading provider of hydraulic lifting and haulage services in Singapore and has a customer base of more than 200 customers.

Its gross profit margin are high and has a high ROE. Hiap Tong also entered into an Equity Joint Venture Agreement with Inner
Mongolia Wulanchabu An Da Heavy Lift and Transport Co.
Ltd to tap into the wind power market as it sees huge opportunities to provide specialised hydraulic lifting in the PRC.

Ever since the company reports its 1H financial result last August, the counter had been falling and is trading at PE of 3.08. It seems that the stock is undervalued.

Any comments on this company and its value/results?

Thanks

I have attached with this the S&P report.

They have cut dividend to nil for last year.

Had done a private placement of 50 million shares last year at 21.7 cents.

Share price is now at 17.2 cents.

Had a sudden swing up and got a query from SGX recently in June 2014.

Reason was the usual, no idea why share price spiked up.

Discount to book value.

Controlling shareholder has 60+% of company.

Listed in 2009, no dividend till 2012, had 0.005 cents in 2012 and 0.007 cents in 2013 dividend.

No stated dividend policy, so you could get 30-40% of profit or none.

All in all, unless you have a special edge in terms of knowledge about this company, better to stay away.

Hiap Tong Awarded a 5-Year Extension for Lifting Services Contract by ExxonMobil

9 January 2018
Hiap Tong Corporation Ltd announced that its wholly-owned subsidiary, Hiap Tong Crane & Transport Pte Ltd, has been awarded a 5-year extension lifting services contract by oil and gas company, ExxonMobil Asia Pacific Pte Ltd.

The Extension Contract commenced on 1 January 2018. Similar to the previous contract with ExxonMobil (1 January 2013 to 31 December 2017), the Extension Contract entails the provision of crane rental and/or lifting services work to ExxonMobil and/or its affiliates at ExxonMobil’s Jurong Refinery, Pulau Ayer Chawan and Singapore Chemical Plant in Singapore.

Whilst the actual value of the lifting services will depend on the amount and scope of work to be carried out, the Group expects the Extension Contract to continue to have a positive contribution to its earnings and financial performance.