Tat Hong

Tat Hong: 4QFY13 earnings grew 66% to $18.6m as a result of a higher gain in disposal of fixed assets, an improved performance of associates and a reversal of loss from its joint ventures. Consequently, full year earnings grew at the same rate to $70.4m. 4QFY13 revenues of $199.6m (+9.7% y/y) bring FY13 revenues to $836.9m (+16.3%). All segments except general equipment rental grew. Most notably, tower crane rental grew by 28% as a result of a larger fleet size coupled with improved utilisation, attributed to a pickup in infrastructure, large commercial and power plant/ station projects in China. The outlook on the group's key markets (Southeast Asia, Hong Kong & Australia) remains positive for FY14, and the management is looking at maintaining its growth across its business segments. The group has proposed a final dps of 2.5¢, bringing full years dividends to 4.0¢, an increase from 2.5¢ in the previous year. At last closing price of $1.51, Tat Hong trades at 13.1x trailing P/E, 1.4x P/B and dividend yield of 2.7%.