TTJ

TTJ: TTJ 1QFY14 net profit soared 45% y/y to $4.6m mainly attributed to improved gross margin of 25.3% from 14.4% due to higher sales from its dormitory business, as well as higher margins derived from projects secured and executed during the period. Revenue slumped 26% to $32.1m due to its weak structural steel business which was partially mitigated by its dormitory business. TTJ has current order book of $126m which is expected to substantially complete between FY2014 and FY2015. Group continues to receive a healthy level of enquiries for a mix of public and private sector projects, and remains positive on the construction demand in Singapore. At $0.29, TTJ trades at a 1QFY14 annualized P/E of 5.5x, below forward valuations of larger cap peers Yongnam (8.9x) and Tiong Seng (7.0x).