TTJ Holdings

[ksir]

With arch rival Yongnam saddled with so much debts, under-utilised steel struts in the short-term, and some loss-making projects mainly due to aggressive bidding in the recent past years, the competitive landscape in the short-term could well be tilting to TTJ's favour. For sure, Yongnam now can no longer afford to bid at low prices and on all big projects, as the company needs to show that it can make money again - and soon! - and is likely constrained in working capital financing.

It is great to note that share price wise and for the past 12 months, TTJ has out-performed STI by over 20%, and by some 50% against Yongnam…..
https://sg.finance.yahoo.com/q/bc?s=K1Q....I%2C%5ESTI
So indeed it is true that small is beautiful, and that good execution and financial prudence matter more than size and aggressive bidding for big projects.

I look forward to the coming FY14 (ended 31Jul14) full-year result which should be released by 30Sep14...

In hindsight, their decision to venture into dormitory business is a sound one. That provides consistently good earnings and cashflow.
Even during the over competitive biddings by Yongnam (which eventually lead to cost overrun), TTJ margin remains decently good.

With the dormitory expected to be expired in another 2-3 years.
Perhaps it is timely that the core biz get back in favours.

While Yongnam's Press Release view its balance sheet as below:
"Nonetheless, net gearing remained at a healthy level of 0.59 times as at June 30, 2014"

If 0.59 is healthy, I have no idea how to term TTJ's Net Cash and rock solid Balance sheet.