Tiong Woon Corp

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According to this news release dated 9Dec13 by Marcon (a reputed U.S. based shipbroker)…..
Tiong Woon has sold a 3,000BHP twin screw tug “Tiong Woon Ocean 15” likely in early Dec13.
In Jul2011, Tiong Woon set up a second 49/51 j-v named ASB Maritime Resources (L) Ltd with the Sabah State Government-owned Asian Supply Base Sdn Bhd ("ASB", based in Labuan) with a capital contribution of USD735k (Tiong Woon's 49% stake) to engage in the business of leasing of vessels in Labuan, Malaysia…..
http://infopub.sgx.com/FileOpen/TWCH_Ann...leID=96209 [27Jul2011 announcement]
http://www.asiansupplybase.com/web/ [ASB's website]

The j-v company invested in and took delivery of a brand-new crew boat ‘ASB Mutiara 5′ built by Strategic Marine's Singapore shipyard…..

Based on the info provided in Note 19 (in p63/64) of Tiong Woon's last FY13 (ended 30Jun13)…..
http://infopub.sgx.com/FileOpen/Tiong%20...leID=19433 [Tiong Woon FY13 AR]
, ASB Maritime Resources (L) Ltd and Asian Supply Base Maritime Resources Sdn Bhd (the other 49/51 j-v with ASB providing marine support services for offshore drilling activities around Labuan) had derived total profits of $1.602m (Tiong Woon's 49% share) in FY12 and FY13 - is a very good return when compared with the original total invested capital $1.02m.
Another steady quarter/Q3…..
http://infopub.sgx.com/FileOpen/TWCH_3QR...eID=295818 [Q3 result announcement]
http://infopub.sgx.com/FileOpen/TWCH_Pre...eID=295819 [press release]
The Jan-Mar quarter is generally a slower quarter as construction activities in Singapore and the region are affected by the CNY holidays in Jan/Feb and the disruption/slow down caused by foreign workers taking their home leave en mass.

Tiong Woon's equity position continues to rise QoQ and YoY, and has reached $255.2m as at 31Mar14, equivalent to a high $0.5495/share. Net debts and gearing level have also improved further.
Tiong Woon has climbed by $0.03 - or approx. 9%! - in the last 2 market days to close at $0.365 today (10Jun14). Is something positive coming?
UOB KH initiates coverage on Tiong Woon with a BUY recommendation and a target price of S$0.455 pegged to its industry peers’ P/B average of 0.83x.
(10-06-2014, 06:09 PM)mslee888 Wrote: UOB KH initiates coverage on Tiong Woon with a BUY recommendation and a target price of S$0.455 pegged to its industry peers’ P/B average of 0.83x.

With the latest (31Mar14) NAV/share already at $0.5495, UOB Kay Hian's TP at $0.455 is obviously quite conservative!

SINGAPORE - A gain from the sale of its subsidiaries and higher profit margins helped Tiong Woon Corporation Holding raise its net profit for the year ended June 30, even as revenue dipped.

Mainboard-listed Tiong Woon, which provides integrated services primarily for the oil and gas, petrochemical, infrastructure and construction sectors, said on Thursday that net profit rose 25 per cent from a year ago to $22.1 million for its 2014 financial year.

Turnover, however, slid 18 per cent to $165.3 million as all four of its business segments - heavy lift and haulage, marine transportation, engineering services and trading - logged lower revenues on thinner demand.

Tiong Woon managed to lower its cost of sales by more than the slip in revenues, thus registering better profit margins.

Tiong Woon's FY14 profit up 25%
leemx@sph.com.sg @LeeMeixianBT

DESPITE an 18 per cent fall in revenue to S$165.3 million, Tiong Woon Corporation Holding's full-year net profit rose 25 per cent to S$22.1 million.
Contributing to the jump in profit attributable to equity-holders for the financial year ended June 30 (FY14) were improved gross profit margin, lower income tax expenses and a gain on disposal of discontinued operations, as opposed to a loss from discontinued operations a year ago.
Turnover fell because of lower contributions from its four segments: heavy lift and haulage (due to a drop in heavy lift and installation projects in Asia-Pacific); marine transportation (as a result of lower utilisation of its vessels); engineering service (because of fewer projects); and trading (due to lower sales of high-tonnage cranes).
Cost of sales fell 23 per cent, resulting in a five percentage point rise in gross profit margin.
Now 27.0 cents only. 1Q15 EPS is 0.75cents and NAV is 57.03 cents.

Revenue dropped by 17%, gross profit dropped by 30% while profit after tax dropped by 25%. Though profit after tax is only $3.1m. Net cash generated from operating activities is $14.9m due to high depreciation charge of $7.3m and reduction in trade and other receivables of $7.7m.

Historical dividend is only 0.4 cents, which translates to yield of 1.5%.

It is worth to keep in the watch list as it is undervalued from the discount to NAV and cash flow perspective.
Tiong Woon has a 51%-owned subsidiary - Tiong Woon Oasis Pte Ltd, with subsidiaries in Singapore, Malaysia and Indonesia - as a j-v with J Oasis Holdings Pte Ltd (http://www.joasisgroup.com/index.html) which is engaged in rather interesting businesses of (1) launching marine vessels for regional shipyards and related products/services, and (2) providing specialised marine & engineering services…..

An interesting company video on their service of launching marine vessels…..

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