Tiong Woon

Tiong Woon: 2QFY14 net profit was 75% y/y higher at $8.8m although topline slid 20% to $44.4m mainly attributed to the decrease in contributions from Engineering Services and Trading segments. Improved gross margins (+9ppt to 39.9%), exchange gain, and gain on disposal of discontinued Fabrication operations ($3.2m) buoyed bottomline. Excluding disposal, profit from continuing ops would be 16% higher at $9m. The Group expects its haulage business to be supported by pipeline of public and private sector housing, petrochemicals and infrastructure projects, and notes the need to improve efficiency due to labor and operating cost pressures. NAV was $0.5419, Tiong Woon trades at 0.61x P/B