Tiong Woon is likely to come under pressure as weak 4QFY10 results reinforce expectations that demand for its heavy lift & haulage svcs could remain soft. 4Q10 net profit came in at $2.8m vs $12.2m year earlier & $9.6m in 3Q10. Full yr FY10 performance just as dismal, with earnings down 43% at $23.9m on weaker revenue (-27%) due to lower utilization & rental rates. FY10 gross margin narrowed to 29.3% from 37.3% in FY09.
No respite in near term as capital-intensive projects may be put on hold given uncertainty of global economic recovery in coming quarters. Shares closed down 1.2% at $0.40 yesterday, representing 34% discount to book. Support at 52-week low of $0.36.
No comments:
Post a Comment