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From what it has revealed publicly, Towkay Chua may be adverse to new residential/industrial property investments. The post-covid Great Construction Boom of 2023/beyond is upon their doorstep and so, are they holding onto their cash for working capital/bidding capacity?
RESPONSES TO QUERIES FROM SECURITIES INVESTORS ASSOCIATION (SINGAPORE) ON THE ANNUAL GENERAL MEETING (“AGM”) TO BE HELD ON 24 APRIL 2024
Would it be reasonable to assume that the group is overcapitalised given the scale of its current operations?
The Board does not hold the view that the Group is overcapitalised or its financial resources are not deployed to maximum returns. One of our key competitive strengths is our strong financial liquidity, it has allowed the Group to achieve lower cost structure and headroom to increase order books.
Both civil engineering and property development businesses are capital intensive in nature. As the Group continue to bid for new infrastructure projects in the public sector, the Group must maintain liquidity (financial resources) to undertake successful bids. The Group has undertaken projects with contract value of above $500 million with execution period more than 5 years.
SIAS Q&A
https://links.sgx.com/FileOpen/Responses...eID=797097
RESPONSES TO QUERIES FROM SECURITIES INVESTORS ASSOCIATION (SINGAPORE) ON THE ANNUAL GENERAL MEETING (“AGM”) TO BE HELD ON 24 APRIL 2024
Would it be reasonable to assume that the group is overcapitalised given the scale of its current operations?
The Board does not hold the view that the Group is overcapitalised or its financial resources are not deployed to maximum returns. One of our key competitive strengths is our strong financial liquidity, it has allowed the Group to achieve lower cost structure and headroom to increase order books.
Both civil engineering and property development businesses are capital intensive in nature. As the Group continue to bid for new infrastructure projects in the public sector, the Group must maintain liquidity (financial resources) to undertake successful bids. The Group has undertaken projects with contract value of above $500 million with execution period more than 5 years.
SIAS Q&A
https://links.sgx.com/FileOpen/Responses...eID=797097
I am not a certified financial advisor and so nothing of what I say should be construed as financial advice. Please consult a certified financial advisor for advice instead.